Volume 519, April 22, 1942

DIARY Book 519 April 22, 1942 Regraded Unclassified - B - Book Page Brandt, Mr. See British Purchasing Mission British Purchasing Mission Brandt, Mr.: HMJr sends word to FDR he opposes Brandt as Chairman - 4/22/42 519 54,57 a) Hopkins assumes responsibility of opposition: See Book 520, page 164 Bureau of Engraving and Printing See Engraving and Printing, Bureau of - C - Churchill, Winston Autographs photograph for HMJr - 4/22/42 232 Clear, Warren J. - Lieutenant Colonel, GSC Far East survey report - 4/22/42 364 Cuba See Latin America - D - Diamond T Motor Car Company - Chicago, Illinois See Inflation: Excess Profits - 1- E Engraving and Printing, Bureau of Negroes: Cafeteria situation reported to Mrs. FDR in letter from Alvin W. Hall, Director - 4/22/42 203 a) Spingarn visits Bureau - Thompson memorandum - 4/27/42: Book 521, pages 100 and 198 Excess Profits See Inflation Exchange Market Resume' 4/22/42 363 Exports Freight Situation - Haas memorandum - 4/22/42 227 - 1- - Far East Survey report by Lieutenant Colonel Warren J. Clear, GSC - 4/22/42 364 Fiji Islands "Bank buying rate for United States dollar notes": Inquiry of American Consul, Suva, Fiji Islands - 4/22/42. 353 a) See cable from Treasury to American Consul - 4/23/42: Book 520, page 144 (See also Book 521, page 185 - 4/27/42) Regraded Unclassified - 1- (Continued) Book Page Financing, Government Conference; present: HMJr, Buffington, Baker, Hadley, Mills, Haas, Murphy, and Bell - 4/22/42 519 1 a) Tap issue as proposed by Federal Reserve Board discussed 1) Reaction at American Bankers Association meeting - 4/24/42: See Book 520, page 262 2) Buffington report on interviews: Book 520, page 353 3) HMJr distinctly dubious; asks that Buffington check with Federal Reserve Board - 4/27/42: Book 521, page 1 b) Raising limit on Series ? and G Bonds from $50- to $100,000 (Eccles' suggestion) discussed 15 "May Cash Market Financing" - Haas memorandum 4/22/42. 22 War Savings Bonds: Payroll Savings Plan: Conference; present: HMJr, Tickton, Bell, Haas, and Mills - 4/22/42 38 a) 482 firms with over 5000 employees - report on b) McKee (Federal Reserve) consulted 42 1) Graves told of Federal Reserve Board Committee - McKee liaison representative 84 Telegrams to Governors, etc., asking for cooperation - 4/22/42 81 Agents - report on - 4/22/42. 86 Foreign Funds Control Purposes, objectives, and methods contained in brief presented for first time to New York Court of Appeals - 4/22/42 230 Freight, Export See Exports - I - Inflation Excess Profits: Excessive Salary Increases: Memorandum on and list of - 4/22/42 91,146 (Western Cartridge Company - East Alton, Illinois (Diamond T Motor Car Company - - Chicago, Illinois Two conspicuous examples of recent increases in compensation - memorandum - 4/22/42 149 - L - Latin America Cuba: Central Bank and Stabilization Fund - second report of American Technical Mission to Cuba for the Cuban Government 4/22/42 258 Regraded Unclassified - M - Book Page McKee, John See Financing, Government: War Savings Bonds Military Reports Far East survey report by Lieutenant Colonel Warren J. Clear, GSC - 4/22/42 519 364 British operations - 4/22/42. 365 - N - - Negroes See Engraving and Printing, Bureau of - o - Oil See Petroleum Coordinator, Office of - P - - Petroleum Coordinator, Office of No position taken on modification of existing depletion allowance as applied to oil and gas - - 4/22/42 215 Prenosil, Stanley (Member of Cuff Links Fraternity) Miss Tully and HMJr discuss qualifications 4/22/42. 49 - R - - Revenue Revision Petroleum Coordinator, Office of: No position taken on modification of existing depletion allowance as applied to oil and gas - 4/22/42 215 - S - Spingarn, Joel See Engraving and Printing, Bureau of: Negroes Speeches by HMJr Broadcast with representatives of Congress of Industrial Organizations, American Federation of Labor, United States Chamber of Commerce, Secretary of Agriculture, Lieutenant Commander O'Hare, etc.: Draft A - 4/22/42 60 il B - # 66 # C - # 74 Reading copy - 4/23/42: See Book 520, page 39 a) Guests: Book 520, page 38 Regraded Unclassified - W - War Savings Bonds See Financing, Government Western Cartridge Company - East Alton, Illinois See Inflation: Excess Profits April 22, 1942 10:30 a.m. FINANCING Present: Mr. Buffington Mr. Baker Mr. Hadley Mr. Mills Mr. Haas Mr. Murphy Mr. Bell H.M.JR: Yes, go ahead, Dan. MR. BELL: Well, what we ought to discuss first, I suppose, is the tap issue that has been proposed by the Federal Reserve Board. H.M.JR: All right, I have got that right here. MR. BELL: You have been over the sheets we gave you, I think. The whole Federal Reserve Board seems to be pressing very hard for this, as well as the Federal Reserve Banks, particularly Alan Sproul. I haven't found very many people on the outside that are in favor of it. I think Mr. Eccles - the day he was here and talked about it gave us the impression - I don't think he said definitely, but I think he gave us the impression that the Federal Advisory Board had also approved it, but I understand from members of the Federal Advisory Board that it was not approached, that it was only dis- cussed in very general terms at their meeting. They weren't asked to approve it. There was very little discussion of it except a statement by one or two that they were against it, so they did not have an opportunity of approving it. I have talked to Ecker of the Metropolitan Life, talked to Harrison of the New York Life, and they are Regraded Unclassified 2 - 2 - both very much opposed to the long tap. They are not interested in the short tap. I have talked to some utility people that just happened to drop in. They would be in favor of the short tap, because they claim that they are going to have some funds accumulate as a result of restrictions put on their procurement of supplies, particularly in the maintenance field. They claim they are not going to have normal maintenance, and they will not be able to reinvest reserves for depreciation back in the plant, and they would be interested in this short tap, but I doubt if there would be a lot of money there. Personally I don't see any objection to the short tap. It might get some money, and I don't know that I would object seriously to the long tap, although I am very luke-warm on the thing. I can't figure out in my own mind just what it is going to do to the long market. Of course, it does have a limitation of a million dollars on it, or it is proposed to have a limitation of a million dollars in one year, and it would give you an opportunity to see how it would work before you took the limit off. I am sure the Federal will propose, after it is in operation for a few months - these other gentlemen have been over it as much as I have, and they can speak for themselves. H.M.JR: Dan, I think this whole thing gets down to having a field test. I think again we are talking about something that is highly theoretical, and we haven't got the slightest idea what the people who have surplus funds - I am convinced they are not very many - what they want to buy and I think the sooner that George gets outinto the field, the better. MR. BELL: Well, I think that is 8. good idea, and George did discuss it a little on his previous trip. H.M.JR: I mean George Buffington. MR. BUFFINGTON: I discussed the short tap with about forty-five corporations, and, one, I don't see Regraded Unclassified 3 - 3 - many corporations with this accumulation of deferred maintenance, of those with whom I discussed it. I question also whether many of those corporations have enough idle funds to make it particularly attractive. We haven't made a thorough check of it. On the long tap, the market, I would say, of the insurance companies with whom I talked, would prefer a fixed coupon and fixed maturity rather than a tap issue. I don't know whether you saw those figures of the cash available on those eighty-two insurance companies or not. It was estimated-- MR. BELL: No, I didn't. MR. BUFFINGTON: It was estimated on February 28 at around three hundred eighty-three million. I talked to Mr. Smith of New England Mutual, and he says he thinks it is a little above a billion. MR. HAAS: I will have the figure this afternoon. MR. BELL: You probably are going to have a request, if you put out a tap issue, from the banks to get some issue to them that will not have to go through the market fluctuations. Burgess told you that. H.M.JR: I know. I am not going to - if we are going to do a tap issue, I am certainly not going to give it to the banks. I mean, that is out. If they kick too much, I won't do any tap issue. MR. BELL: Well, this wasn't contemplated, you know, to go to the banks, either one of these. They were eliminated. H.M.JR: If they kick too much, then we won't have any tap issue. I mean, rather than get the banks mad, I would rather not do a tap issue. I think the way to find out is this. I take it that this thing that Eccles wrote here on April 7 is about the way we would do it. I mean, has he described about the way we would do it? MR. BELL: I think so. Regraded Unclassified 4 - 4 - H.M.JR: All right, George and Murphy and the rest of you boys? Is it about the way? MR. HAAS: Which is that? I am not sure if I have seen it. H.M.JR: I hope SO. MR. HAAS: Yes, I have seen it. MR. BELL: It is just old now. MR. MURPHY: There are some points of disagreement, but they are not major. H.M.JR: Well, approximately? MR. MURPHY: Approximately. H.M.JR: All right, then the thing to do is let's get out some people - I don't know whether George can do it all. MR. BELL: We can send Mills, probably. H.M.JR: No, I am glad to see Mills, but - he can sit here, but he has got all he can do on this other thing. He has got & big job on this issuing agent business. He is my issuing agent agitator. (Laughter.) MR. BELL: Would it be possible for him to do a little of both? I mean, when he is out for the other-- H.M.JR: I don't think SO. I think when we get these figures this morning from Tickton, he will have all he can do. I had a call in for the Under Secretary of War, and I couldn't get him, and he passed me this morning and hopped out of his car and walked down with me, and he is sending for General Carter this morning. How is he? MR. BELL: Fine. He is going to have our people over this afternoon to work on a form of letter. Regraded Unclassified 5 - 5 - H.M.JR: The weekly report shows we had four thousand concerns added to our pay-roll deduction plan in one week; and to get these big boys to become issuing agents, it will take all that Mills can do, plus John McKee. So it gets down to Buffington going out as my field tester, and how much help does he need. Now, why can't you take - use your security dealers to help you? MR. BUFFINGTON: That is what I wanted to touch on. We will have in & day or two a report of the breakdown of this survey that they made of these ten thousand cor- porations which I would like to show you, showing the percentage of those corporations who now are borrowing or who have big requirements for additional working capital, which will tell us something, I think. H.M.JR: Well, what I want, Dan, and I think what you want, is this. Today is what, Wednesday? MR. BELL: Yes. H.M.JR: I am ready to let George start out; and if he wants to go - he can go anywhere he wants, I don't care. Let him start tomorrow so he will be back here Monday. He can take these two Federal Reserve tap issues and go out and get the security fellows ready and say, "All right, how much of either one of these pieces of paper can we sell? We want to know, see." And let's do it on the basis - there is no use saying, "How many of you want to buy & billion dollars, If because hell, we wouldn't sell fifty million dollars of that stuff, a hundred mil- lion dollars worth of that stuff: I mean, if we kept it down - how much would we sell? I thought every bank in the country would take twenty-five thousand dollars of that last thing. MR. BELL: Sixty-six million we sold of the twenty- five thousand dollars. H.M.JR: It was a disappointment to me. MR. BELL: There were B. lot of country banks, of course, who Were not much interested in the half percent. Regraded Unclassified 6 - 6 - They want longer bonds and higher coupons. MR. BUFFINGTON: I was wondering about making as broad a check as possible, and I don't want to suggest it unless you feel it is a good thing to do, to use these securities people to make a broad check, or do you think - Dan doesn't. H.M.JR: Why not? MR. BELL: It seems to me you have got too many people trying to learn this thing in the shortest possible time and going around and discussing it. I think if you had a dozen or twenty-five people and tell them what this is all about, and the objections, and the questions we have had on it, then you would get a much better survey. I think if you get a thousand people working on it, you are going to get-- H.M.JR: Well, I want something. You have got Thursday, Friday, and Saturday, see, Now, what can you do? Can you do New York and Chicago? MR. BUFFINGTON: Yes. H.M.JR: What? MR. BUFFINGTON: Yes, sir. MR. BELL: Have you pretty well covered Chicago? MR. BUFFINGTON: No, it has just been very spotty. I talked to seven or eight corporations, and you - I talked primarily to the big ones, and you ought to talk to utilities, insurance people, big ones and smaller cor- porations. That can be done. H.M.JR: What? MR. BUFFINGTON: That can be done by the end of the week. We could also delegate in some of these centers - Regraded Unclassified 7 - 7 - pick out maybe ten security people if you want to use them. I have no reason to want to use them, but you could take the ten best men in those communities and sit down with them on a program and have them do it very carefully. H.M.JR: Well, if Dan is willing, I am willing. I am saying to you, "Here is a job. You have got all day to plan it." MR. BELL: I would be willing for that, because I think they will understand it, but just to say to a group of security dealers over the country, "Here is a problem. I want you to go out and discuss it--" MR. BUFFINGTON: No, I didn't have in mind, Dan, going that far. MR. BELL: I don't think you will get-- H.M.JR: Well, today is the twenty-second. You would be back here on the twenty-seventh. I don't know whether we will be able to do this thing on the fourth or not. We haven't said we will do it on the fourth, have we? MR. BELL: Oh, no. H.M.JR: But you (Buffington) will be back here on the morning of the twenty-seventh? MR. BUFFINGTON: Yes, sir. H.M.JR: And then come back and say - take this tap issue with you. Do you want somebody from the Federal Reserve Board here to go with you? MR. BUFFINGTON: I don't think that is necessary, Mr. Secretary. H.M.JR: All right. MR. BELL: This doesn't necessarily have to interfere with your financing. I don't think it should, because you couldn't get this started. Regraded Unclassified 8 - 8 - H.M.JR: I thought you were going to do this - I thought you were going to start this right away. MR. BELL: Well-- H.M.JR: I thought you might want to do it this week. MR. BELL: I don't think so, We have got to print securities. That takes some time to get the securities out. You see, we have got no security drawn or anything on this thing. H.M.JR: That never worries me. (Laughter) MR. BELL: No, I think I would do at least the next major financing irrespective of this decision. If we get this started by June first, we will do well. H.M.JR: Well, I think we ought to find out anyway, don't you? MR. BELL: Oh, sure, I think that is the thing to do. H.M.JR: What? MR. BELL: Yes, I do. H.M.JR: Because we have been talking about this thing so much now. New York and Chicago pretty well answers the thing. MR. BUFFINGTON: Yes, I think you would get as broad a cross section in those two cities as anywhere. MR. BELL: You might go to Boston, because if your insurance companies-- MR. BUFFINTON: Well, you get the same thing in New York. MR. BELL: I mean, next week he could do that. Or you could have somebody that you know in Boston do it. Regraded Unclassified 9 - 9 - MR. HAAS: It occurs to me, Mr. Secretary, that if it is not going to be done before the financing, and I kind of agree with Dan that it shouldn't be, it may be unwise to get the people all stirred up on these tap issues. It may cause some holding back on our marketable issues, waiting for something better to come out. You might as well do it right after you do this. H.M.JR: I don't agree with Dan. Supposing there was a tremendous demand for this tap issue. Well then, I might say, "O.K., gents, she is wide open. Buy all you want, the sky is the limit." If Eccles is right, we would sell four or five billion. MR. BUFFINGTON: George, there is an indication of that- H.M.JR: Excuse me just a second. Hold your thought. If we don't do it, George, then Mr. Eccles comes back in here Monday or Tuesday and says, "Why don't you do them & tap issue?" I will say, "Well, because I can't raise any money that way." Or if he is right, and there are several billion dollars worth lying around, we will get out a tap issue. MR. HAAS: Instead of this? H.M.JR: Yes. MR. HAAS: Oh, I see. H.M.JR: We can give them a postage stamp as a receipt. I am not worrying about printing. MR. BUFFINGTON: As an indication of what you have said, the steel corporation, which I would have expected to have wanted marketable securities were very much interested in this short tap issue, and turned around and subscribed to twenty-five million of the Certificates of Indebtedness, so I don't think that discussion in any way interfered with their interest in the marketable securities. Regraded Unclassified 10 - 10 - H.M.JR: The English sold about two billion dollars in one week. It was "Weapons Week," they called it, through the volunteer plan. :II got 8. letter from Sir Frederick Phillips. They have got 8. wonderful Sentence in there about saving by the volunteer plan and every- thing else, and I am sending it around to all the boosters for the volunteer plan like Wallace and Eccles, and so forth. They are all getting a copy. But it is 8. good letter. They call it "War Weapons Week," and then each community adopts a battleship or something. We have been talking about this thing for three months. I want to find out, George - and you can go in with Mr. Bell, and in the communities you can - I want answers in here from the Federal Reserve for the ones you can't cover, give me an estimate, how many billions of dollars are there that we could mop up in tap issues in idle funds. That is what I want, Dan. Where you can't cover it, George, you and Dan write out some telegrams and tell the people in the districts you can't cover to get it. MR. BUFFINGTON: We may, however, use & small number of these securities people for it. H.M.JR: You can do any damn thing you want 50 long as I have an intelligent report Monday morning, telling me how many millions of dollars there are that would like to be invested in this form of security. That is what I want. But I have got to get Ecoles an answer. MR. BELL: Yes. H.M.JR: I have got to give him an answer. And you fix up cables between you and Bell to the rest of this gang, see. MR. BELL: That is all right, but I still am & little worried about the major financing. H.M.JR: That is all right. We will work on it Monday morning. There is no use talking about it today until I get this answer. MR. BELL: No. I don't want to see this thing started in place of the major financing and then have it flop. Regraded Unclassified 11 - 11 - H.M.JR: I didn't say I am going to start it. I don't know. You don't know. Nobody in this room knows. 1 MR. BELL: Well, I don't know anything about the idle funds or how much is available, but I know we are going to be down to 8. billion dollars in the balance on May 15. H.M.JR: I will go with you on May 4. MR. BELL: I think it would be a little dangerous to do other types of financing and just rely on them entirely unless We have another program, either Treasury bills or something. H.M.JR: Well, maybe we will have a long tap issue for the idle funds and a five year issue for the banks. MR. BELL: You mean just a marketable issue? H.M.JR: Yes, a five year issue for the banks, and a long tap issue for the non-banks. MR. BELL: Well, I think we ought to have at this time a long bond. H.M.JR: Well, make it a tap issue. MR. MURPHY: Without a limit, Mr. Secretary? H.M.JR: No limit. MR. MURPHY: You are taking a quick dive. MR. BELL: Did you see the frown come up on Murphy's face? (Laughter) (Mr. Tickton entered the conference.) MR. MILLS: Mr. Secretary, going back to Mr. - I don't quite agree with George on this. Even if there are a small number of the investment industries in that, isn't that going to give a very wide circulation to the idea of a tap issue, and maybe interfere with a market issue later on? 12 - 12 - H.M.JR: You mean just going out and talking about it? MR. MILLS: No, if besides him some of the key investment people are brought into it. They are extremely enthusiastic, and when they go out and interview this corporation and that corporation, they could very - might leave some impression that there was this more favorable issue that could damage the market on a larger issue that has to come ahead of the tap issue. H.M.JR: Well, we have got to find out - this thing has been kicking around here now for three months, and the Federal Reserve Board is entitled to an answer from me. I keep asking Bell, "What is & long issue?" and he keeps telling me they are still figuring on it. (Facetiously) That is approximately true, isn't it? MR. BELL: I guess so, yes. H.M.JR: Now Imeetwith them Monday, and I say I want to do it just the way we have always done it. And then they say, "Why doesn't Morgenthau take a look at our stuff?" see, so the answer to you and Haas is that when he goes out he has got to be careful and emphasize that this is purely exploratory, and may not be - we may not do it until July. MR. BELL: Ronald Ransom, I think, gave a good expression to it yesterday. He said this tap issue has becomean obsession over in the Federal Reserve Board. H.M.JR: Yes, there you are. (Laughter) MR. BUFFINGTON: And you can cover just so much ground with limited personnel. If you want to really cover the ground and get the Secretary an answer, you have got to get enough points to get an answer. H.M.JR: Well, I think these people are raising a very good cautious note. You have got to say, "I don't know whether he is going to do it; he may not do it this Regraded Unclassified 13 - 13 - month; or he may do it in July; or he may not do it at all, but if he did it, what have you got?". MR. BELL: Personally I would like to go ahead with our financing program for the month of May and let George take two or three weeks to go over this thing with outside people. He might give you 8. tentative report of the number of places he would be able to cover between now and Monday, but I wouldn't stop at that. Iwould let him cover a lot more in the following ten days. H.M.JR: Well, let him make a cautious trip. O.K.? MR. BELL: Yes. H.M.JR: Now, I would like to talk with Bell, Tickton, Haas, and Mills. MR. BELL: I take it now this ought to delay the decision on "F" and "G" limitations. H.M.JR: Yes. MR. BELL: Because if we go to a tap, I think we shouldn't go to "F" and "G." H.M.JR: I am weakening on raising the limit. I mean, if you are going to do a tap, I think you shouldn't do it. MR. BELL: I think that is the feeling here, too. H.M.JR: Anything else? MR. BELL: Anything about an open market meeting next week? H.M.JR: Let's have one Tuesday. MR. BELL: All right. H.M.JR: We will have it Tuesday at eleven o'clock. Will you tell Stephens outside? Regraded Unclassified 14 - 14 - MR. HAAS: I think, Mr. Secretary, right after your agenda on financing, something should be done on reserves. I wouldn't do it before this financing, but I would certainly do it before the next one. MR. BELL: That is right. I have both the Federal Reserve Board and the Federal Reserve Bank studying it to see whether or not something shouldn't be done in Chicago and New York. H.M.JR: You don't want to do it before? MR. BELL: I don't know that it is necessary. You still have two billion eight reserves. H.M.JR: All right. Now let me see, if those people that I named will stay. George, you go over your trip with Bell. He will be here only five minutes. Regraded Unclassified 15 BOARD OF GOVERNORS ⑈ of OF THE FEDERAL RESERVE SYSTEM WASHINGTON THE X STEVEN OFFICE OF THE CHAIRMAN April 7. 1942. To - Mr. Bell From - Mr. Ecoles As you suggested, I am sending you herewith the letter addressed to the Secretary about which I spoke to you on the telephone this afternoon in connection with the suggestion that the limit on Series F and G bonds should be raised from $50,000 to $100,000. Tisle Enclosure 16 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON orrer April 7. 1940 Dear Heary: In reply to a request from Mr. Bell, I - statting by views on the suggestion that the limit on Series 7 and 0 bonds should be raised from $50,000 to $100,000. I feel certain that the mmbers of the Board as well as the Presidents of the Reserve Banks would agree with by position, since my views are is line with one aspect of the comunication sent to you on January 28, 1942. A copy of this communication is enclosed. I think that the question of increasing the limit OR F and G bonds should be deferred pending decision about the long- term non-marketable issue which the Federal Reserve has proposed. The reasons for this position may be summarized as follows: (1) The 2 1/2 per cent rate carried by 12-year , and G bonds is a subsidy rate designed primarily for mall savers. Fifty thousand dollars is certainly not too low a limit for this type of saver. (2) The issue proposed by the Federal Reserve would extend the maturity to eighteen years and remove the subsidy feature. It could, therefore, have a much higher limit. In fact, the million dollar limit proposed could later be raised or removed. The pro- posed issue would, therefore, go much farther in meeting the in- vestors' demand than would an increase to $100,000 for ? and G bonds. (3) The 18-year 2 1/2 per cent non-market issue W propose would compete much less with long-term open-market issues which you may wish to offer from time to time. Twelve year 2 1/2 per cent bonds of the F and G type, if the limit be raised to $100,000, would definitely compete with open-market issues. The 18-year issue we propose, on the other hand, would be at 2 1/2 per oent much closer to the market and would not compete on a preferential basis with long- term open-market issues. Às you know, I am greatly in favor of resorting increas- ingly to non-market issues. I believe, however, for the reasons stated, that the purpose would be accomplished much more satisfac- Regraded Unclassified 17 Honorable Henry Morgenthau, Jr. -2- April 7, 1942 torily by offering a new 18-year non-marketable issue, with the other features proposed in our memorandum, than by raising the limit on , and G bonds. Sincerely yours, M. 8. Eccles, Chairman Honorable Henry Morgenthau, Jr., Secretary of the Treasury, Washington, D. C. Enclosure TREASURY FINANCING 18 The President in his Budget Message submitted to the Congress on Junuary 7 made the following statement concorning "Borrowing and the Monaco of Inflation": "Last year, defense expenditures so stimulated private capital outlays that intensified use of privato funds and private crodit added to the influtionary pressure oreated by public sponding. "Undor & full war program, howover, most of the in- croase in expenditures will replace private capital out- lays rather than add to them. Allocations and priorities, necussitated by shortages of material, are now in operation; they curtail private outlays for consumers' durable Foods, private and public construction, expansion and even ru- placements in nondefense plant and oquipment, These drastic curtailmonts of nondefunse expenditures add, there- fore, to the private funds available for noninflationary financing of the Government deficit. "This factor will contribute substantially to financing the tremondous war effort without disruptivo price rises and without necessitating a departure from our low-interest- rate policy." This statement will only be berne out by the event if, in fact, private funds diverted from their normal uncs are lent to the Government during the war period. It omphasizes the necessity of taking further stops to obtain the maximum amount of borrowed funds from lendurs other than commercial banks. Obtaining Borrowod Funds from Lenders Other than Commercial Banks (1) The President's Budget Message indicated that expenditures of the Federal Government during the fiscal year 1942-1943 (beginning July 1, 1942) would be approximately 360 billions. (2) On the basis of the cstimatos given in the Budget Mossage, including the revenue from proposed new taxes, the Federal debt will increase from $70.6 billior on June 30, 1942, to 3110.4 billion on Jury. 30, 1943, an increase of 339.8 billion. (3) The net public borrowing contemplated in the fiscal your 1942-1943 totals 033.6 billion. (4) Making allowance for possible sales of Defonse Sevings Bonds under the present solling program and a not increase over the fiscal year in the amount of tax unticipation notus and depositary bonds outstanding, it appears likely that $20 to 325 billions will have to be obtained by the sale of Government sccurities to banks end to other londors and investors. Regraded Unclassified 19 -- 2 -- (5) The grave necessity of the Treasury's taking further stops to obtain the maximum amount of these borrowed funds from lenders and in- vestors other than commercial banks is apparent, if fiscal and monetary policy is to contribute its share to the anti-inflation program. It will require more than additional pressure for the sale of the present series of Defense Savings Bonds, important as that is. (6) The principal sources of funds, other than the banking system and the small income purchasers of the present series of Defense Savings Bonds, are: (a) Insurance companies, other institutional investors of various kinds, public bodies, wealthy individuals, trustees, etc. (b) Corporations and other business concerns which, in the aggrogato, may now have or may accumulate large idle balances. These two sources of funds must be tapped by the Government, and proferably should be tappod with obligations which have & special appeal for the holdors of such funds but which cannot got into the commercial banking system. (7) It is suggested that an attompt should be mado to roach those funds with two issues, extending the present series of Defense Savings Bonds, one of longor term for insurance companies and similar long-torm invostors, and Other of shorter turm for business concerns (and public bodios) with temporarily idlo funds. The general features of such offorings might be 0.8 stated below. (The exact ratos and naturities of those issues arc, of course, subject to review, We are in agreement that thu termd of those offorings should not be inconsistent with existing open-markut rates and maturities having in mind suggested rostrictions upon nogotiability and other differencos.): (a) Long-torm issue: Intorost rate: 2 1/2%, Maturity: 15 years or thoreabouts, Redomption r :At cost valuo with intorost adj 138 tmont (as in the CR80 of Series E, F, and G Savings Bonds) on six months' notice ufter bond has been hold for one year, Negotiability: Not nogotiable in considoration of redomption foature, Callable: Not callable prior to maturity, Salus Rostriction, For the present, limited sale to any one purchaser in any one year, uppor limit to be not loss than $1,000,000. Regraded Unclassified 20 -- 3 -- (b) Short-term issue: Interest rate: into of interest payments Yield 6 months 3/8 0.38 1 year 5/8 0.50 1 1/2 years 7/8 0.02 2 1 1/8 0.75 2 1/2 1 3/8 0.87 3 1 1/2 0.98 3 1/2 1 5/8 1.07 11 1 3/4 1.15 4 1/2 1 7/8 1.23 5 2 1.30 Laturity: 4 or 5 years, preferably 4 years, Redemption: Redeomable -- after held six months, on 60 days' notice at any time, Negotiability: Not negotiable, Callable: Not callable, Salos Restriction: Available in unlimited amounts. (8) It is also suggested that there be an immodiate increase in the supply of Treasury bills to at least $2.6 billion (not including tax period bills), which would contribute not only to the fluidity of the money markot but would also provide an alternative modium for the temporary investment of idlo public and business bhlances. With 32.6 billion of Treasury bills outstanding, thore would still be an adoquate margin of reservo buying power in this market to take care of emergency or temporary financing which it might be dosirable or nccossary to accomplish with additional offerings of bills, It is also important that consideration regularly be given to issuing additional blocks of Troasury bills to mature in the three or four days following the quarterly tax payment dates. (9) In no far as it is nocessary to use bank credit in financing the Treasury's needs, money should be sought from banks with short-torm opon markut issues, that is, with notos and bonds with maturities not LX- cooding ton yours. It may be truo that the breadth of the open markot will be somowhat reduced by the salo of the restricted issues suggrosted above. It is more certainly true that to the extent such sales are successful in obtaining for Government uso funds which otherwise would have luin idlo, the amount of the issues which 1t will be noocssary to place in the opon market will be reduced. On balance, and over a period, it would soom most likely that the successful sale of those restricted issues would be & factor of strength, not of workness, in the open markot. Regraded Unclassified 21 Pattern of Rates (1) Our experience in the last war, the experience of other countries in tids war, and our present capacity for the management of the monetary and credit resources of the country, all indicate that this program should not be cast in the old pattern of rising rates of intorest as the war progresses. Price control is required in the field of credit, just as in other fields, when the Government is the principal borrower in the market and the cause of its borrowing is the defense of our national existence. (2) It is, thorefore, desirable, and the existing situation in the money market and the Government security market makes it practicable, to dotormine and establish a patturn of rates for United States Government socuritios which vill fix, for the present, the genoral terms of Treasury financing. (3) It is suggested that the range of ratos establishod by such a pattorn should bo, for the prosent, from 1/4-1/2 to 2 1/2 per cent, for obligations other than Series E Dofenso Savings Bonds. The lower limit of the range and the short-torm rates in general could have somo floxibility without disturbing the maximum or long-term rato. The 2 1/2 per cont long- torm rate approximates closely enough the general pattern of rates which has already boon established, and stoers a middle course between the dangor of a substantial declino in the priocs of outstanding socurities on the ono hand, and the dangor of an unattractivo program which will not draw the maximum funds from investors and investing institutions on the other, (4) Within the torms of the general financing program we suggest, the ostablishment and maintenance of euch a pattorn of rates doos not requiro the excessive volume of excess reserves which has characterized rocont years. It does contemplate that should excess reserves shrink to a point which ondangers maintenance of the pattorn the Reserve System will provide a sufficient volumo of roserves to enable banks to assist the Treasury's financing to whatever extent is necessary. Regraded Unclassified 10- 22 st Charad Sandeline RY DEPARTMENT Xr. Zip Xr. Strips ICE COMMUNICATION Xr. Hars DATE April 22, 1942 TO Secretary Margenthau FROM Mr. Hass Subject: MAY Cash Market Financing Summary and Conclusions In the long run, the Treasury will have to depend primarily upon banks and individuals to purchase Govern- ment securities, as these are the only classes of 1n- vestors whose demand may be made sufficiently extensible. A subsidiary source of funds may be unabsorbed depreci- ation reserves, etc., of corporations, but this source does not seem to have developed in an important measure as yet. Insurance companies, mutual savings banks, and other similarly situated classes of investore cannot be important factors in the long run, as their demand for Government securities must be relatively inflexible. For the present financing, the greatest reliance must be placed upon commercial banks outside of New York City. New York City banks are unlikely to make sub- stantial net additions to their portfolios because of their reserve position. The cash position of insurance companies 1s relatively good, and they may be expected to take a fair amount of the new securities. It would be very difficult to confine the present financing to a single issue. It 1s recommended that it consist of & 2 percent bond and a 2-1/2 percent bond. In view of the limited amount of non-banking funds avail- able, it 18 recommended that the 2-1/2 percent bond be for only $750 millions. It is not believed that an lesue of this size would jeopardize the position of the out- standing 2-1/2's of 1967-72, while a larger issue might do 80. The proposal of Dr. Burgess for a serial bond issue and that of Dr. Goldenweiser for accepting all subscrip- tions offered without allotment are considered, but it 10 not recommended that either proposal be adopted for the present financing. Regraded Unclassified Secretary Morgenthau - 2 I. Funds Available to Purchase Marketable Government Securities A. The Fundamental Situation Prospective purchasers of marketable Government securi- ties may be divided into four broad categories as follows: (1) Commercial banks, (2) Insurance companies and mitual savings banks. (3) Other corporations, (4) Individuals. These groups differ very sharply in their ability to finance the war effort, in the case with which securities may be sold to them, and in the economic effects of such sales. Chart I shows the amount of marketable Government securities which has been absorbed during the past year by the first and second of these groups, respectively, and by the third and fourth groups combined. (1) Commercial banks, The ability of com- mercial banks to absorb Government securities is limited only by the willingness of the relevant Government agencies to provide them with excess reserves and, perhaps, capital funds. There are no fundamental difficulties in the way of doing this, provided that the relevant Government agen- cios cooperate for this purpose. There is no question but that the banks will buy as many Gov- ernment securities 8.8 may be required of them if they are told that it is their public duty to do so and if they are provided with the requisite means. The sale of Government securities to banks 18 highly inflationary, however, unless offset by the liquidation of other assete of the banks or by the accumulation of bona fide savings on their books. The sale of Government securities to com- mercial banks under existing circumstances 18 Regraded Unclassified 24 Secretary Morgenthau - 3 sesentially & marginal resort, therefore, to be used only to the extent that the securities oan- not be placed claswhere. (2) Insurance companies and mutual savings banks. These institutions have been very impor- tant in the financing of past years. Their ability to absorb Government securities is very inflexible, however. If insurance companies should devote their entire new resources to the purchase of Government securities, they could acquire only about $2 bil- lions a year. The total resources of mutual savings banks are actually declining, 80 that they can in- crease their holdings of Government securities only by switches or by using idle cash. Trust accounts, eleemosynary institutions, and State and local gov- ernments are in essentially the same position B.G insurance companies and mutual savings banks. Bar- ring some major innovation in the economy -- such as over-all rationing -- the largest amount of net purchases which can be expected from all of these institutions combined will be, perhaps, $3 billions B year. (3) Other corporations. The net absorption of marketable Government securities by 'other cor- porations" and by all other investors, including individuals, during the year ended March 31, 1942, amounted to only about $400 millions, or 7 percent of the total increase in marketable debt Chart I). Data are not available for a further breakdown of the figures. The month-to-month movement of the figures is very much disturbed by variations in individual and corporate holdings of Treasury bills, largely for tax avoidance purposes. The figures for the complete year (from March to March) avoid this difficulty, however, Non-financial corporations may buy Government securities from three sources: (a) existing idle balances, (b) current business savings, and (c) cur- rent accumulations from unabsorbed depreciation reserves, etc. Regraded Unclassified 25 Secretary Morgenthau - 4 The amount of existing idle corporate bal- ances 18 highly speculative and controversial, The cream of such balances has already been skimmed off for investment in tax notes. The net absorption of marketable Government securi- ties during the past year by all investors other than banks and insurance companies, and the re- sults of the inquiries of the investment bankers in connection with the recent certificate issue suggest, furthermore, that not much reliance should be placed on this source. Current business savings -- meaning the excess of corporate earnings over taxes and dividends -- are negligible and are likely to This conclusion 18 reenforced by the breakdown of subscriptions to the certificate issue This breakdown 1s as follows: Amount Percent Class of subscriber : subscribed of total (Millions of dollars) Banking institutions 1,815 59 Insurance companies 485 16 Other corporations 576 19 All other 187 6 Total 3,063 100 "Other corporations* in the above table include incorporated dealers and other financial corpora- tions. When complete data are available, it will be possible to segregate these and show the sub- scriptions entered by non-financial corporations alone. Regraded Unclassified 26 Secretary Morgenthau - 5 continue to be 80 for sometime to come. Accumu- lations from unabsorbed depreciation reserves, ato., may become substantial during the next fiscal year, but do not appear to be important at the present time. (4) Individuals. Individuals are the only class of investor other than banks potentially capable of absorbing an amount of Government secu- rities equal to the needs of the war effort. Government bond purchases by individuals, further- more, are non-inflationary unless made from idle funds or from the proceeds of the liquidation of other securities. Purchases of Government bonds by individuals are very hard for the Treasury to secure, however, and to the extent secured, are more likely to be in savings bonds than in marketable securities. Increased sales of Government securities to indi- viduals, therefore, are more likely to decrease the total amount of marketable securities which it 18 necessary to sell than to absorb a. substan- tial proportion of those sold. Net purchases of marketable Government securities by individuals have been small during the past year, 88 may be seen from Chart I. B. Funds Available at the Present Time The funde actually now available to purchase an issue of medium- or long-term Government securities issued in the immediate future may be summarized as follows: (1) Commercial banks. The most important factor in determining the appetite of commercial banks for Government securities is their reserve position. Recent fluctuations in the excess reserves of commercial banks inside and outside of New York City are shown in Chart II and recent changes in the Government bond holdings of each of these classes of banks are shown in Chart III. Excess reserves in New York City have continued tight, and New York City banks have continued Regraded Unclassified 27 Secretary Morgenthau - 6 to be a poor market for any securities of longer maturity than certificates. The reserve position of out-of-town banks has also deteriorated some- what since the last financing." It 1a probable, however, that banks outside of New York City still continue to be a good market, particularly for securities in the 2 percent maturity range. The reserve position of the banks must prob- ably be accepted as a datum for this financing. It is highly desirable, however, that action be taken with respect to it shortly after this f1- nancing and well in advance of the next cash financing. (2) Insurance companies and mutual savings banks. Insurance company cash has increased some- what since the last finanoing, the cash balances of the 36 large life insurance companies reporting to the Treasury amounting to $986 millions on March 31 (Chart IV). Life insurance companies, # Total excess reserves and excess reserves of banks inside and outside of New York City are shown in the following table as of October 29, 1941, the last reporting date before the increase in reserve requirements; November 5, 1941, the first reporting date after the increase in re- serve requirements; and April 15, 1942, the most recent reporting date: : : October 29 November 5, April 15, 1941 1941 1942 (Millions of dollars) Banks in New York City 1,345 775 722 Banks outside of New York City 3,257 2,634 2,164 All member banks 4,602 3,409 2,886 Regraded Unclassified 28 Secretary Morgenthau - 7 therefore, may probably be counted upon for a good subscription to the new financing, partio- ularly if it includes a long 2-1/2 percent bond. Mutual savings banks are in a fundamentally weak position. Mutual savings banks in New York State, holding a little over half of all deposits of mutual savings banks in the United States, lost $157 millions in deposits during the first three months of this year. This is about 3 percent of their total deposits. If this experience 18 representative, relatively little may be expected from this quarter, except by Way of switches. (In February all mutual savings banks acquired $193 millions of the new 2-1/4's of 1952-55, but In- creased their total holdings of Government seou- rities on net balance by only $50 millions.) (3) "All other investors". A8 may be seen from Chart I, "all other investors" (1.8., other than banks and insurance companies) have done better in the last two cash financings than was the case earlier. "All other investors" absorbed about $300 millions of the 2-1/4's of 1952-55 issued in February and kept their holdings of other marketable Government securities about constant. They oan probably be counted upon to do aa well or better this financing, particularly if it includes a long-term 2-1/2 percent bond. Regraded Unclassified 29 Secretary Morgenthau - Our II. Bome Technical Problems As the amount or Treasury financing in prospect 1s 80 much larger than anything for which there 18 precedent, it has naturally called forth a large number of suggestions for new methods of handling it. Most of these suggestions deal with present or proposed issues of non-marketable 88- curities, and 80 are beyond the scope of this memorandum. It seems, however, that consideration should be given here to two important suggestions which have been made with respect to offerings of marketable securities. A. Serial Issues Dr. Burgess has suggested that the Treasury should of- fer serial bonds. Such issues might have equal annual maturities from 1 to 10 years and would be offered for sub- scription "in strips" -- 1.e., equal amounts of each matu- rity. No subscriptions would be permitted for individual maturities. Subsequent issues of such bonds might be for a portion of the 10-year period only ae, say, 1 to 5 years or 6 to 10 years, but the principle of "strip" subscription would be retained. As soon as they were allotted the in- dividual serial maturities would be separable and freely negotisble. Dr. Burgess recommende this method of offering only for 1ssues in the maturity range of from 1 to 10 years, or there- abouts -- i.e., for issues directed primarily to commercial banks and 1dle funds. He believes that this method of offer- ing short- and medium-term securities would permit commercial banks to adjust their portfolios much more effectively than they are able to do under the present method of offering. Longer-term issues of marketable securities would continue to be handled aa at present. Dr. Burgess' suggestion would, of course, greatly in- crease the number of individual issues of Government securi- ties traded in the market, but this does not seem to be & major objection. Taken 88 a whole, the suggestion seema worthy of very careful consideration. It would seom better to hold it in reserve than to adopt it on the occasion of the present financing, however, since the market seems ready and willing to absorb longer maturities at the present time. Regraded Unclassified 30 Secretary Morgenthau - 9 Another proposal which has been made for the issuance of "serial bonds" would provide that the Treasury offer simultaneously, say, five issues of securities, each with its own maturity and optional oall date. Subscriptions could be made to these securities separately rather than in "strips" as in Dr. Burgess' proposal. It is maintained, however, that by offering four or five securities simul- taneously B. better coverage could be obtained of all in- vestor preferences. In essence, such an offering would not be one of 'serial bonds" at all. It would merely be a four- or five-way issue. This seems further than it 18 necessary to go to meet investor preferences. Two out of the past three long-term cash financings have been one-way only; and, for reasons given in the last section of this memorandum, we believe that B. two-way issue would be adequate at the present time. B. Proposal To Take All That Is Offered Dr. Goldenweiser has proposed that the Treasury, on its next cash financing, take all the money that 18 offered to it, allotting all subscriptions in full. It would, of course, be necessary to announce this in advance 80 that subscribers could adjust their subscriptions accordingly. It would probably be advisable also to leave an issue of this sort open for a few days. The major advantage claimed for this proposal is that it 18 "realistio". There 18 at present 6. sort of pseudo- scarcity of Government securities existing at B. time when all informed persons know that these securities will soon be available in abundance. An offering allotted in full would dispel this illusion immediately and 80 permit the market to adjust itself to the realities of the situation. There are two major disadvantages of taking such action at the present time, however. First, the amount of money which would be obtained from such an issue would be indeter- minate and would not be known until the books were closed. It 1s much more convenient for the Treasury, as long 48 it 18 able to do 80, to fix the amounts which it desires to borrow, Second, it appears inevitable that such an issue, Regraded Unclassified 31 Secretary Morgenthau - 10 because of the very fact that it would dispel the illusion of scarcity in the market, would tend to put pressure on interest rates unless it were accompanied by adequate counter-measures. It 18 probable that the Treasury will ultimately find it necessary to allot future issues of Government securi- ties in full. It seems, however, upon consideration of all factors involved, that it would be better to postpone this date for the time being and continue the present system for B. while longer. Regraded Unclassified 32 Secretary Morgenthau - 11 III. Selection of Particular Issues The following table shows the approximate maturities and premiums at which a 1-1/2 percent note, & 2 percent bond, and B. 2-1/2 percent bond could be sold at the present time: Estimated : Probable : Yield : Price : Basis* : (Percent) 1-1/2 percent note 1.33 100-24/32 due December 15, 1946 (4 years, 7 months) 2 percent bond 1.81 101-7/32 due March 15, 1949-51 16 years, 10 months- 8 years, 10 months) 2-1/2 percent bond 2.38 101-29/32 due June 15, 1962-67 (20 years, 1 month- 25 years, 1 month) Based on closing prices, April 22, 1942. The above table does not include a 2-1/4 percent bond, as it seems desirable that this sector of the market be given a rest. (A 2-1/4 percent bond, if offered, would fall on top of the 2-1/4 percent bond of June 15, 1952-55, 01- fered in February, or, as would probably be preferable, its terms could be altered slightly to make it a distinct issue.) Regraded Unclassified 33 Secretary Morgenthau - 12 Upon the basis of the above figures and the reasoning of the preceding sections of the memorandum, it appears that it would be very difficult to confine this financing to 8 single issue only. A single 2 percent 1asue would be streamlined too much for the banks and would ignore other sectors of demand, while sufficient funds do not appear to be available for & single 2-1/2 percent issue. This dilemma was avoided in February by a single 2-1/4 percent issue which straddled both types of demand, but this sector of the market -- a compromise sector, at best -- has now been just hit and deserves a rest. The possibility of & long-term note remaine to be con- sidered. A 1-1/2 percent note such as that listed in the table would appear desirable from the standpoint of economy in interest rates. It would seem best, however, to save this section of the market until the reserve position of the New York City banks has been improved. In the meantime, the low yield on long notes serves to buttress the demand for medium-term bonds. On the basie of these considerations, it 1s suggested that the financing be divided into two issues: one of 2 percent bonds, and the other of 2-1/2 percent bonds. In view of the limited amount of non-banking funds available, it is recommended that the 2-1/2 percent bond be for only $750 millions. It is not believed that an issue of this size, on the terms suggested, would jeopardize the position of the outstanding 2-1/2 percent bonds of 1967-72, while B. larger issue on harsher terms might do 80. Attachments. Regraded Unclassified 34 Chart I ABSORPTION OF MARKETABLE U.S. SECURITIES; BY CLASSES OF INVESTORS Monthly, March 31, 1941 to Date 1941 1942 DOLLARS Billions DOLLARS Billions +7 +7 +6 +6 +5 +5 Commarcial Banks in N.Y.G. +4 + 4 +3 + Commercial Banks Outside N.Y.C. +3 +2 +2 +1 +1 Insurance Companies and Mutual Sevings Bonks D o due pays insure -1 -1 -2 -2 MAR. MAY JULY SEPT. NOV. JAN. MAR, MAY JULY SEPT. NOV 1941 1942 "includes Guaranteed Securities - - the leeviary of the Treasury - of Formal - - F-237 EXCESS RESERVES INSIDE AND OUTSIDE OF NEW YORK CITY 1940 1941 1942 DOLL ARS 1943 Billions DOLLARS Billions 7 7 6 6 All Member Banks 5 5 Outside of New York City Banks 4 4 3 3 2 2 New York City Banks I I O J A $ 0 N D J F M A M J J A S o N D J F M A M J J A 5 o N D J F M A M J 0 1940 1941 1942 1943 Office of the Secretary of the Treasury 35 5 - of - and - F-238 Regraded Unclass 36 Chart III HOLDINGS OF MARKETABLE U.S. SECURITIES BY COMMERCIAL BANKS 1941 1942 Mar. May July Sept. Nov. Jon. Mor. May July Sept. DOLLARS DOLLARS Billions Billions 23 23 Total 22 22 21 21 20 20 19 19 18 18 15 15 14 14 Outside New York City 13 13 12 12 11 II 10 10 9 9 Inside New York City 8 8 7 7 6 6 Mar. Moy July Sept. Nov. Jon. Mar. May July Sept. 1941 1942 NOTE: The decrease in March is due to the run-off in Treasury bills. Office of the Secretary of the Treasury of Research and Statements F-225-A Regraded Unclassified LIFE INSURANCE COMPANY CASH HOLDINGS* 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 DOLLARS DOLLARS MILLIONS MILLIONS 1200 1200 1100 1100 1000 1000 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 *36 LEGAL RESERVE COMPANIES HAVING 82 PERCENT OF TOTAL ADMITTED ASSETS OF ALL UNITED STATES LEGAL RESERVE LIFE INSURANCE COMPANIES. Office of the Secretary of the Treasury 37 Dividen of - one - Regraded Unclassifi 38 April 22, 1942 11:00 a.m. DEFENSE SAVINGS BONDS Present: Mr. Tickton Mr. Bell Mr. Haas Mr. Mills H.M.JR: What have you got? MR. TICKTON: I have the information on the "E" flag and the companies - it arrived this morning. We are putting it together by plants and we will have to put it together by companies. We will put it on this table if you will let us have it back. H.M.JR: I don't know whether I will or not. MR. TICKTON: Then we will make it up over again. There are four hundred eighty-two firms over five thousand. We have checked every one of the ones that didn't have 8. plan and some of them came in with a plan this week. Now, there are nine that don't have the plan. This was all checked by telephone through Ted Gamble's office yesterday afternoon and those - here are the nine companies and this is what they say about them. MR. BELL: All but nine? MR. TICKTON: All but nine companies over five thousand employees have plans. Of those nine companies 8. couple of them were definite hold-outs. They just won't have any. MR. HAAS: American Tobacco. Regraded Unclassified - 2 - 39 MR. TICKTON: American Tobacco and Cannon Mills. MR. BELL: Woolworth? MR. TICKTON: No, Woolworth is in. MR. BELL: I don't think so. MR. TICKTON: Well, they claimed it was in. We had to take their word. MR. BELL: New York says it isn't in. H.M.JR: Cannon Mills, I don't get that. MR. HAAS: He has been very cooperative in the past. He sends those orders in and all that. MR. BELL: We might hold up that hundred million dollar issue for American Tobacco on Thursday if they don't come in. (facetiously) MR. HAAS: That is George Washington Hill. H.M.JR: It is down to nine? MR. TICKTON: Down to-- MR. BELL: That is pretty good. MR. TICKTON: The first part of that is by the size of the company. H.M.JR: I want Mr. Bell to have a copy of that. MR. TICKTON: O.K.. That was made this morning. I made ten copies of the one we did last week. H.M.JR: Now this, you see, is where Mills comes in, U.S. Steel, no; Bethlehem, no; Pennsylvania Railroad, no; Regraded Unclassified - 3 - 40 New York Central, no; and so forth. MR. TICKTON: There are a hundred and thirty-eight of those four hundred eighty who are issuing agents. The rest of them aren't. H.M.JR: How many? MR. TICKTON: A hundred and thirty-eight out of that number. H.M.JR: Well, Mills, just as soon as you get this accounting thing settled, I am willing to send personal telegrams, certainly, to everybody on the first page to install it. That wouldn't be you. No, that isn't you. That is my pay-roll deduction fellow. But-- MR. MILLS: Yes, that is the issuing agents. H.M.JR: Well, you think of a way how to get these fellows in as issuing agents, will you? MR. TICKTON: A few of them are going to come in because we have readjusted our operations 80 that we will let them keep the duplicate stuff. That was the purpose of that telegram you signed the other day. That helps in many cases. MR. MILLS: Could this be done by Federal Reserve Districts, too? This is nationwide. MR. BELL: I don't think Woolworth is in. MR. TICKTON: I got that from the administrator and the Federal Reserve Bank. I have got them both on cards so I can tell you what Federal Reserve Bank and what administrator. H.M.JR: Well, anyway, as of today, what do you think we should do about these nine? MR. TICKTON: Our administrators, you remember, Regraded Unclassified 41 - 4 - you sent telegrams to them. You asked Gamble to send telegrams to them last Thursday on the nineteenth, and they have pulled down to nine now, and they are working on those nine. H.M.JR: Then I will wait for Gamble. You have got B. big job to do. MR. MILLS: Just running through the head, the way to do it, if we could get them by Federal Reserve Districts-- MR. TICKTON: We have got it. H.M.JR: You will do it by states, won't you? MR. TICKTON: It is already done by states. It is done by states over here. MR. MILLS: Federal Reserve-- MR. TICKTON: By districts, we have got the cards all numbered by districts. MR. MILLS: That would help a lot. The Federal Reserve Banks we will probably have in this thing by the - your figures can't be right up to date. You have to count on Federal Reserve reports to them, and then if the Secretary sent out wires he might get out a wire to some where you had already put it in, and you would almost have to check the Federal Reserve districts before a wire went out or they would make a mistake. MR. TICKTON: That is right. The point is that I have got the reports up through Saturday. We - they will be up to date, but-- MR. BELL: Mr. Mills should do the Federal, shouldn't he, Mr. Secretary? H.M.JR: Yes. MR. BELL: Because they are in constant touch with Regraded Unclassified 42 April 22, 1942 11:07 a.m. HMJr: Hello. Operator: Governor McKee. HMJr: Hello. Operator: Go ahead. HMJr: Hello. McKee? John McKee: Yeah. HMJr: Morgenthau. Mc: Yeah. HMJr: How are you? Mc: Fine, how are you? HMJr: I'm okay. Do I understand that you're the man who's been designated to help us with getting these various companies to act as issuing agents, who have the payroll deduction plan in? Mc: On all the - in the entire program, yes. HMJr: Yeah. Mc: I'm Exhibit A. HMJr: You're Exhibit A. Mc: Yeah. HMJr: Well, now, Bell and I have got Mr. Mills working particularly on this issuing agent thing, see. Mc: Yeah. HMJr: I'd like him to come over, at your convenience, Regraded Unclassified 43 - 2 - and tell you about where we are and what we've been doing in Detroit. Mc: Yeah. HMJr: With the Comptroller General. Mc: Uh huh. HMJr: And then I'd like to keep you posted, and I've given Mills the job of keeping you posted. Mc: Uh huh. HMJr: What time could you see him this morning? Me: Oh, about eleven thirty? HMJr: He'll be there. Me: There's some reactions of this I'd like to give to you, which I think you ought to have. HMJr: Right. Me: There 18 a field operation going on today that is quite elaborate. What progress it's making 18 subject to a lot of reactions. HMJr: Yeah. Me: And I think you ought to have those reactions in your mind. HMJr: Yeah. Me: I don't think we want to go too far in pressing for results to have people get disgusted with the payroll deduction plan. HMJr: That's right. Mc: Now, you just - that is so much more essential than their ability to qualify as an issuing agent to me, that we ought to go as far as we could, and then if we can't succeed, don't do anything to disturb that relationship. Regraded Unclassified 44 - 3 - HMJr: That's right. Well Mo: So sometime when you've got a few minutes, I think we ought to sit down and I'm going to send you a memorandum that I have over here that you can digest - I'll give it to Mills so he can give it to you. HMJr: All right. Well, the only thing we feel is that some of the Fed Banks are a little sluggish on this. Mc: Yeah. Well, I imagine you'll find that. HMJr: We've got a lot of high-powered salesmen over here full of beans and enthusiasm. Mc: Un huh. Well, you'll find - well, you know the Fed Banks as well as I do. HMJr: No I don't. Me: Some of them have got some of their pepper left, and some of them are pretty well at the end of it. HMJr: Yeah. Well, Mills will be over there at eleven-thirty. Mc: Okay. I'll be glad to see him. HMJr: And - do I understand that you're tagged with the whole volunteer plan? Me: No, the presidents are. The presidents' con- ference - now, let me get you straight on that. HMJr: Yeah, do that. Mc: The presidents' conference appointed a com- mittee on defense savings bonds. HMJr: Yeah. Mc: Which - that committee includes Allan Sproul as its Chairman, Al Williams of Philadelphia, and Chester Davis of St. Louis. 45 - 4 - HMJr: Yeah. Mc: And then they asked the Board to appoint a member as a liaison between your division and them HMJr: Right. Mo: to transmit to the field the pertinent facts. Now, we have some of our staff detailed to that responsibility at which I sort of work with them. HMJr: Good. Mc: Now that's your set-up. HMJr: Good. Well, I'll have Mills be over there and give you this thing, and I'd like to keep you more posted and I'd appreciate if you'd do that to me, too. Mc: Fine, fine. Well, we'll get together and get something out in order to encourage action. I do understand that there's about at least ten men out in the field in the New York district trying to do this one job. HMJr: Fine. Me: And I'll send you a memorandum of the report on it. HMJr: Well, of these five hundred companies employing five thousand or more, we've got all but nine now. Mc: That's fine. HMJr: I think it's wonderful. Mc: That's fine. HMJr: Yeah. Me: Well, all right. I'll be glad to see him. HMJr: Thank you. 46 - 5 - these people and they are having their own directors work on them in many cases. H.M.JR: Oh, yes. Mills works through the Fed. MR. BELL: Yes. H.M.JR: Because this issuing thing is definitely - - and you (Tickton) can work any way you want to. MR. TICKTON: Well, the Fed is providing me with this list every week by either wire or air mail so I can get it on Monday. H.M.JR: Just remember Bell and I are holding Mills responsible to get these issuing agents in, so whatever you do, work together. MR. TICKTON: All right. I can get a daily list if you want them. MR. MILLS: No, if I could get that thing broken down by Federal Reserve districts-- MR. TICKTON: That is no problem. MR. HAAS: Before you send the wires out check every- body. MR. TICKTON: That is right. That is no problem. MR. BELL: Well, you will know from here on when they come in. MR. MILLS: Yes. If I once get started then it is just checking them off. (The Secretary held a telephone conversation with Mr. McKee of the Federal Reserve Board as follows) 47 - 6 - H.M.JR: You (Mills) had better take this over with you so you will have something to show him, you see. What I would do is to tell him that when this is finished tonight you will send him over 8 copy, you see. MR. TICKTON: O.K. H.M.JR: Why isn't it a good idea to have Mills and let Harold Graves know that anything - I didn't know that - that we want the Federal Reserve Banks to know, that Mills keeps running over there and this does it. MR. BELL: That is all right. H.M.JR: See? Will you? What? Take a note to Harold Graves, will you? "You may already know this; but if you don't, this memorandum will serve a useful purpose. Mr. John McKee of the Federal Reserve Board in Washington informs me that the twelve presidents of the Federal Reserve Banks appointed a committee to work with the Treasury on War Savings Bonds. Mr. Alan Sproul is chairman of this committee, and Mr. Williams of the Philadelphia Bank and Mr. Davis of the St. Louis Bank are members of the committee with Mr. Sproul. The Board designated Mr. McKee as the liaison officer between the Board, the Treasury, and the committee. In order to keep this committee and the Federal Reserve Board informed of what we are doing - and I don't think we have done a very good job of it - with Mr. Bell's approval, we are going to have Mr. Mills, in addition to devoting him- self to getting the companies with pay-roll deduction plans to become issuing agents, act as liaison between the Regraded Unclassified 48 - 7 - Treasury and Federal Reserve Board on War Savings Bonds. Therefore, please see that he is kept posted daily so that he can inform Mr. McKee. I am very anxious that this be done, and done well." 49 April 22, 1942 11:33 a.m. HMJr: I would like to see Mr. Roosevelt. Grace Tully: Uh huh. HMJr: And what I want to do 1s, we've gotten in a lot of very interesting figures on forty-one tax returns for corporations and individuale. T: Uh huh. HMJr: We took fifty-three companies that have war contracts. T: Uh huh. HMJr: Now, I don't know whether he wants to see me alone. I would like to bring Paul and Sullivan with me. T: Uh huh. HMJr: I would like to do it Thursday. T: Uh huh. HMJr: You might talk to him about it. T: All right, fine. I'll see what's happening tomorrow. You mean morning. HMJr: Yes. Is that tomorrow? Oh, yeah. T: Tomorrow's Thursday, as far as I know. HMJr: I don't know why. I'm a day behind. T: You lost a day somewhere. HMJr: Well, that trip down, I guess I checked that off. T: (Laughs) All right, I'll find out for you. Mr. Secretary, while I have you on the tele- phone, Stanley Prenosil, who 1s down here in Washington, came in to see me this morning. Regraded Unclassified 50 - 2 - HMJr: Who? T: He said that he had written - Stanley Prenosil one of the Cuff Link boys. HMJr: Oh, yes. T: And said that he'd written several weeks ago to you enclosing an application, I think, for - to ask if there was any chance that there'd be any vacancy for anybody with his cualifications. He's been in Wall Street, and has some financial background as well as newsoaper background, and said he hadn't heard anything; so I told him if and when I saw you or had an opportunity, I'd mention it to you. HMJr: I don't think I ever got the letter, to be honest. T: Well, he said that - he was sending it at my direction - but not at my direction to you, but instead he was taking the liberty of sending it to you to ask you if you'd be good enough to forward it to the proper person in your depart- ment, you see. But he said he hadn't heard any- thing since. HMJr: What's his name? Charlie T: Stanley Prenosil. HMJr: Is he the fellow with the thick glasses? T: No. No, who's that? There's nobody in that group with thick glasses. He doesn't wear any glasses. He's bald-headed and fairly short - stocky, kind of. HMJr: Used to be a telegraph operator? T: No, no. He was a newspaper man with Steve. He covered the Navy Department during the last World War with the President, you know, and was one of that original group of Stephen, Mac, and Prenosil and McCarthy, and so on. Regraded Unclassified 51 - 3 - HMJr: I know McCarthy. T: Prenosil 1s the bald-headed one. HMJr: Yeah. T: Short. HMJr: Doesn't he wear glasses? T: No. Never have seen him with them. HMJr: Is he the one that gets uo and does poetry? T: No, not particularly. He may - oh, well, whenever we do, he does whatever he's supposed to do; but I mean HMJr: Well T: you'd know him when you see him. HMJr: I'll look it up. T: You've been going to birthday parties with him for years. HMJr: (Laughs) T: (Laughs) HMJr: Don't scold me. T: (Laughs) But he just happened to be in Washington, he came down with some friend, and he's here for a day or two, and I think he wants to get out of the Wall Street picture. He says there's nothing much in it for any- body any more, and that he really does have to take care of his family. He's got a wife, and he lost a child with infantile & couple of years ago. He's had pretty tough sledding for some time. HMJr: Well, I tell you what we'll do. T: And the President, of course, would be Regraded Unclassified 52 - 4 - interested in helping him if we could find the spot, but I don't like to bother him with it if we can do it without. 2 HMJr: Tell him - let me just see a minute - if he will come to my office T: Yes. HMJr: at a quarter to three T: A quarter to three. HMJr: I will have him - I'll shake hands with him and turn him over to somebody whom I hope can use him. T: Grand. HMJr: A quarter of three. T: Good. Fine, Mr. Secretary, that's very nice. I know that the President will appreciate it, because if I went in to ask him, I know he'd say, "Well, ask somebody to do something for him." HMJr: Grace, your word's very good with me. T: (Laughs) Thank God. HMJr: Now, on this thing tomorrow T: He belongs to a fraternity with you, anyway. The Cuff Links Fraternity - he belongs to the Cuff Links Fraternity. HMJr: I know. Which is very important. T: Yeah. HMJr: Look, if he wants to see me alone T: Yeah. HMJr: then a bedside appointment would be very nice. Regraded Unclassified 53 - 5 - T: Yes. HMJr: If he wants the other two gents to be there, then..... T: The office would be all right, huh? HMJr: The office. And what I like, is the number one appointment in the morning. T: Right, sir. The first eleven o'clock one, huh? HMJr: Yeah. T: All right, grand. HMJr: And you send Prenosil over. T: All right, I will. HMJr: Thank you. T: Fine. Grand, Mr. Secretary. Good-bye. Unclassified 54 April 22, 1942 2:10 p.m. HMJr: Hello. Grace Tully: Hello. HMJr: Grace. T: Yes, Mr. Secretary. HMJr: This is for the President, you, and me, only. T: Right, sir. HMJr: Very extra-extra. T: Yes, sir. HMJr: There's a Mr. Brandt, B-r-a-n-d-t, an Englishman T: Yeah. HMJr: who's here, has been in charge of food for the Purchasing Mission for some time. T: Yes. HMJr: They're now talking or have made him Chairman of the English Purchasing Mission. T: Yes. HMJr: Now, he either is, or he was, one of the principal partners of Lazard Freres, of London. T: Yeah. HMJr: I think it's terrible, because we've kept the J. P. Morgans and the Lazard Freres and all of those out of this war purchasing. T: Yes. HMJr: And to put a man who's a member of the English firm T: Yes. Unclassified 55 - 2 - HMJr: in charge, or Chairman, of the British Purchasing Mission, I think is God-awful. T: Uh huh. HMJr: And I wish you'd tell the President I think so. T: Yeah. Well, do you suppose he can do anything about it if they've already named him? HMJr: Well, I got it today. I think he's just in temporarily, but this Mr. Littleton has put him in. He isn't permanent. T: I see. You think your little word dropped someplace might help. HMJr: I'm sure it would, because I know that - well, I mean, Churchill's never played with these - international bankers, is what they are. T: Uh huh. Yes. HMJr: And I've kept them out of the U.S.A. end. T: Yes. HMJr: And to have them come in sitting here and on the inside of all of our military secrets T: Yes. HMJr: I think 1s awful. T: All right, sir. I will pass it along and let you know what the Boss has to say. HMJr: I thank you. T: Grand, I'll call you. I haven't had a chance to take uo the appointment yet, because I haven't seen the President: but I expect I'll see him within 8 few minutes. Their lunch ought to be over very shortly, and I hope to have a few minutes then and I'll let you know. HMJr: While he's brushing hie teeth, you could talk to him. Regraded Unclassified 56 - 3 - T: Yes, I will. (Laughs) All right. I tell you, people talk to him at every minute. When he's brushing his teeth, and every other time. nMJr: (Laughs) You're telling me. T: (Laughs) Yeah. And you're telling him. (Laughs) HMJr: (Laughs) T: The poor fellow. I feel sorry for him. HMJr: Okay. T: Right. Good-bye. 57 April 22, 1942 2:41 p.m. HMJr: Hello. Grace 2 Tully: Hello. HMJr: H. M., Jr. T: H. M., Jr, nine-thirty tomorrow morning alone. HMJr: (Laughs) T: (Laughs) You asked for it either way. HMJr: Yeah, I'm honored. T: (Laughs) All right. Nine-thirty at his bed- side in the morning. HMJr: Yeah. T: You can watch the brushing of the teeth then. And on the other, the President says to get hold of Halifax right away and frankly talk to him about it. HMJr: Me? T: Yes, sir. HMJr: Who, me? T: Yes, sir. HMJr: Oh. T: H. M., Jr. to do it. HMJr: (Laughs) Aw, I don't want to. T: No. Well, he HMJr: Why didn't he tell Harry Hookins to do that? T: Well, I don't know. I said that you had called and that you had told me this, and Regraded Unclassified 58 - 2 - he said, "Tell him to get hold of Halifax right away and talk frankly to him." HMJr: Just like that. T: Yes, sir. HMJr: Well, I think I'll wait to talk to the Boss tomorrow. T: (Laughs) HMJr: Anyway, I'll be there at nine-thirty. T: All right, fine. HMJr: Thank you. T: Grand. Regraded Unclassified 59 MEMORANDUM RE: CONFERENCE OF APRIL 22, 1942, 4:30 p.m. Present: Secretary Morgenthau Ganson Purcell George Buffington Purpose: To discuss the advisability of forming a Capital Funds Control Committee After a discussion of the problem, the Secretary suggested that the matter be handled by an informal committee until such time as there seemed to be a greater need for securing an Executive Order. It was suggested that a group meet with the Secretary as problems arise to discuss them individually. The Secretary suggested that the group include D. W. Bell, Under Secretary, Lauchlin Currie, Administrative Assistant, Executive Office of the President, Jesse Jones, Federal Loan Administrator, Ganson Purcell, Chairman, Securities and Exchange, and Marriner Eccles, Chairman, Board of Governors of the Federal Reserve System. Mr. Purcell seemed to think that a meeting twice a month or at regular intervals would take care of the situation for the present. G.B. 1st 1st chaft 60 DRAFT OF SECRETARY MORGENTHAU'S BROADCAST THURSDAY, APRIL 23, 1941 AT 10 PM 93017.M. Good Evening: At the very start of this program I should like to introduce to you a modest man in uniform who is sitting alongside me in my office tonight. He is Lieutenant Commander Edward O'Hare, whom the President decorated personally last Tuesday for having brought down six Japanese bombers singlehanded. 61 Ladies and gentlemen, you may wonder why I invited Lieutenant Commander O'Hare to take part in this War Savings broadcast. I'll tell you my reason. This one man has proved that Americans can win if they have the weapons as well as the courage and the spirit to do it. You and I, as civilians, are just as deeply involved in this war as he was when he fought those Japanese flyers. They would have brought him down in flames and killed him if he had not been too quick for them. In the same way, the Nazis and Japanese will stop at nothing to bring us down -- to divide us and destroy us if they can. It is now high time for us, as individuals, to make our own declaration of war against the enemy, and to get into this war with all our heart and soul. D-A 62 - 2 - There is no better way for civilians to fight than to cut down spending, to save materials, and to buy War Savings Bonds. In a nation at war "spending as usual" is as dangerous as "business as usual". We can't have all we want for ourselves and still give O'Hare and the other fighting men the weapons they need. Nearly ten million Americans are now cutting down spending and buying War Savings Bonds, but with the war costing 120 million dollars every day, ten million savers are not enough. All of us have got to save and buy bonds on a vastly greater scale. All of us have got to think war and act war in our personal lives. Victory in any battle depends on every fighting man. In the same way, victory in this great War Savings A 63 - 3 - campaign depends upon every individual. All of us who earn 8. regular income should set aside at least ten percent of it every pay day for War Savings Bonds, and those who have been earning especially high pay in the war industries should set aside even more. The most convenient way to do this is through the payroll savings plan, under which an employee authorizes his employer to set aside a certain percentage of his pay for bonds. If you are not doing this already, your job in the war is to sign up tomorrow; if you have signed up already, then your job in the war is to increase the amount of your savings every pay day. I know that we on the home front can do our part as well as O'Hare did his. 64 - 4 - I know that we can reach our goal of a billion dollars in savings a month by July if every State and every county does its share. I know that we can enlist an army of 50 million savers, without coercion or compulsion of any kind. Some people say it can't be done. They said the same thing last January when the President announced our production goals of 60,000 planes, 45,000 tanks, 20,000 anti-aircraft guns and 8,000,000 tons of merchant shipping in 1942. Yet my friend, Donald Nelson, told us the other day that those goals are being reached and will be reached. Here in this room with me tonight is a man who knows something about production goals. He, too, Regraded Unclassified 65 - 5 - announced production goals 80 big that some people said they could never be attained. He called upon the farmers of America last year to produce vast new quantities of food for freedom. The farmers of America answered his call and they are reaching his goals. He is here tonight with representatives of labor and industry to tell us what he thinks of our new War Savings goal. My friend and Cabinet colleague, the Secretary of Agriculture, Claude Wickard. D-A Regraded Unclassified 66 2nd Dhaft april 22nd P.M. Good evening: Last Tuesday, at the White House, the President awarded the Congressional Medal of Honor to an out- standing American hero, 8. young naval aviator who flew out alone to fight nine Japanese bombers. I should like to read what the President said about him: "Without hesitation, alone and unaided, he repeatedly attacked this enemy formation at close range in the face of their intense combined machine- gun and cannon fire, and despite this concentrated opposition, he, by his gallant and courageous action, his extremely skillful marksmanship, making the most of every shot of his limited amount of ammunition, shot down five enemy bombers and severely damaged a sixth D-B 67 "As a result of his gallant action, one of the most daring if not the most daring single action in the history of combat aviation, he undoubtedly saved his carrier from serious damage." The name of that hero, ladies and gentlemen, is Lieutenant Commander Edward H. O'Hare. He is here with me in my office tonight, and I am happy to introduce him to you. B Regraded Unclassified 68 Ladies and gentlemen: I have invited Lieutenant Commander O'Hare to be here tonight, with the leaders of American labor, agriculture and industry, because this one man has proved that Americans have what it takes. He has proved that the American soldier or sailor of today is just as good as the men who fought and won at Belleau Wood and Chateau Thierry. He has proved that we Americans anything like can win every time if we only get an even break. Lieutenant Commander O'Hare didn't even have an even break. He went out alone, one man against nine bombers crews. He dared to do the unbelievable, and he won. Every day the O'Hares are doing the unbelievable on far-off fronts, holding the battle line of freedom until we can overcome the head-start of our enemies. D-B Regraded Unclassified - 2 - 69 In Lincoln's time, at the start of the War Between the States, they sang this song: "We are coming, Father Abraham, a hundred thousand strong." This time we are coming millions strong. We are coming with machines and men in overwhelming numbers, but in the meantime we can thank God for all the O'Hares, in all our fighting forces, who are keeping the flame of freedom alive. You and I, as civilians, are just as deeply involved in this war as Lieutenant Commander O'Hare was when he fought those Japanese bombers. (They would have brought him down in flames and destroyed his ship, too, if he had not been made of hero's gold.) In the same way the Nazis and the Japanese will stop at nothing to bring us down -- to divide us D-B Regraded Unclassified 70 - 3 - and destroy us if they can. It is now high time civilians for us, as individuals, to make our own declaration of war against the enemy, to fight and work and save with all our heart and soul. In 8. nation at war "spending as usual" is as dangerous as "business as usual". We can't have all we want for ourselves and still give the O'Hares -- and his millims of unrades in anns millions of them -- the weapons they need. Nearly ten million Americans are now cutting down spending and buying War Savings Bonds, but with the war costing 120 million dollars every day, ten million savers are not enough. All of us have got to save and buy bonds on a vastly greater scale. All of us have got to think war and act war in our personal lives. D-B Regraded Unclassified 71 - 4 - Victory in any battle depends on every fighting man. In the same way, victory in this great War Savings campaign depends upon every Individual. All of us who earn a regular income should set aside at least ten percent of it every pay day for War Savings Bonds, and those who have been earning especially high pay in the war industries should set aside even more. The most convenient way to do this is through the payroll savings plan, under which an employee authorizes his employer to set aside a certain percentage of his pay for bonds. If you are not doing this already, one of your first jobs in the war is to sign up tomorrow; if you have signed up already, then one of your first jobs in the war is to increase the amount of your savings every pay day. D-B Regraded Unclassified 72 - 5 - We on the home front have got to do our part as well as O'Hare did his. We have got to reach our goal of a billion dollars in savings a month by July, and every State and every county has got to do its share. We have got to enlist an army of 50 million War Bond buyers. Some people say it can't be done. Well, here in my office tonight is 8. man who last year announced & production program so big that some people said it couldn't be done. He called upon the farmers of America to produce vast new quantities of food for freedom. The farmers answered his call and they are reaching his goals. He is here to tell us what he thinks of our new War Savings goal: my friend and Cabinet colleague, the Secretary of Agriculture, D-B Claude Wickard. Regraded Unclassified - 73 Draft C sent to Secretary's house at 6 p. m., April 22. 74 Good evening: Last Tuesday, at the White House, the President awarded the Congressional Medal of Honor to an outstanding American hero, a young naval aviator who fought alone against nine Japanese bombers. I should like to read what the President said about him: "Without hesitation, alone and unaided, he repeatedly attacked this enemy formation at close range in the face of their intense combined machine- gun and cannon fire, and despite this concentrated opposition, he, by his gallant and courageous action, his extremely skillful marksmanship, making the most of every shot of his limited amount of ammunition, shot down five enemy bombers and severely damaged 8. sixth D-C Regraded Unclassified - 2 - 75 "As a result of his gallant action, one of the most daring if not the most daring single action in the history of combat aviation, he undoubtedly saved his carrier from serious damage." That man, ladies and gentlemen, is here with me in my office at the Treasury tonight. I am happy to introduce him to you: Lieutenant Commander Edward H. O'Hare. D-C 76 Ladies and gentlemen: l'invited Lieutenant Commander O'Hare to be here tonight, with the leaders of "merican labor, agriculture and industry, because this one man has proved that Americans have what it takes. He has proved that the American soldier or sailor of today is just as good as the men who fought and won in 1918 "over there." He has proved that we Americans can win every time if we get anything like an even break. Lieutenant Commander O'Hare didn't have an even break. He was up there alone, one man against nine bombers. He dared to do the unbelievable, and he won. Every day men like O'Hare are doing the unbelievable on far-off fronts, holding the battle line of freedom until we can overcome the head-start D-C Regraded Unclassified 77 - 2 - of our enemies. In Lincoln's time, at the start of the War Between the States, they sang this song: "We are coming, Father Abraham, a hundred thousand strong. 18 This time we are coming millions strong. We are coming with machines and men in overwhelming numbers, but in the meantime we can thank God for all the O'Hares, in all our fighting forces, who are keeping the flame of freedom alive. You and I, as civilians, are just as deeply involved in this war as Lieutenant Commander O'Hare when he fought those Japanese bombers. It is now high time for us civilians, as individuals, to make our own declaration of war against the enemy -- to fight, to work, to save with all our heart and soul. D-C Regraded Unclassified - 3 - 78 In & nation at war "spending as usual" is as dangerous as "business 8.8 usual." We can't have all we want for ourselves and still give O'Hare and his millions of comrades-in-arms the weapons they need. Nearly ten million Americans are now cutting down spending and buying War Savings Bonds instead, but with the war costing 120 million dollars every day, ten million savers are not enough. All of us have got to save and buy bonds on a vastly greater scale. All of us have got to think war and act war in our personal lives. All of us who earn B. regular income should set aside at least ten percent of it every pay day for War Savings Bonds, and those who have been D-C - 4 - 79 earning especially high pay in the war industries should set aside even more. The most convenient way to do this is through the payroll savings plan, under which an employee authorizes his employer to set aside a certain percentage of his pay for bonds. If you are not doing this already, one of your first jobs in the war is to sign up tomorrow; if you have signed up already, then one of your first jobs in the war is to increase the amount of your savings every pay day. We on the home front have got to do our part as well as O'Hare did his. We have got to reach our goal of a billion dollars a month in savings by July, and every State and every county has got to do its share. We have got to enlist an army of 50 million C War Bond buyers. Regraded Unclassified - 5 - 80 Some people say it can't be done. Well, here in my office tonight is a man who last year announced a production program 80 big that some people said it couldn't be done. He called upon the farmers of America to produce vast new quantities of food for freedom. The farmers answered his call and they are reaching his goals. He is here to tell us what he thinks of our new War Savings goal: my friend and Cabinet colleague, the Secretary of Agriculture, Claude Wickard. D-C Regraded Unclassified > a 81 STANDARD FORM No. 14A COPY TREASURY DEPARTMENT APPROVED ET THE PRESIDENT MARCH 10, 1926 WASHINGTON TELEGRAM CHARGE TREASURY DEPARTMENT, APPROPRIATION FOR OFFICIAL BUSINESS-GOVERNMENT RATES Defense Savings - Radio, Sect. Expenses of Loans TELEGRAM TO GOVERNORS (The appropriation from which payable must be stated on above time) LIST ATTACHED a.s. - - - 9-1417 APRIL 22, 1942 ON MAY 1 THE UNITED STATES TREASURY DEPARTMENT LAUNCHES A NEW WAR BOND CAMPAIGN IN WHICH EACH STATE WILL BE ASKED TO MEET A MONTHLY QUOTA OF WAR SAVINGS. YOUR ENDORSEMENT OF THE QUOTA SYSTEM IS A VITAL FACTOR IN THE SUCCESS OF THE QUOTA CAMPAIGN IN YOUR STATE. YOUR WAR SAVINGS STAFF STATE ADMINISTRATOR WILL GREATLY APPRECIATE YOUR SUPPORT IN INAUGURATING THE QUOTA SYSTEM BY MEANS OF A RADIO BROADCAST. HE WILL CALL ON YOU WITHIN THE NEXT FEW DAYS TO ENLIST YOUR HELP. MANY THANKS FOR YOUR COOPERATION. HENRY MORGENTHAU, JR. SECRETARY OF THE TREASURY. MLS/br 82 Regraded Unclassified The Honorable Frank N. Dixon, The Senorable Keen Johnson, Governor of Alabama, Governor of Kentucky, Montgomery, Alabam. Frankfort, Kentucjey. The Honorable Sidney P. Osborn, The Honorable Sam. H. Jonsa, Oovernor of Arisona, Governor of Louisiana, Phoenix, Arisons. Beton Rouge, Louisions. The Honorable Honor v. Adkins, The Honorable Summer Seaall, Governor, of Arkarsas, Governor of Maine, Little Rock, Arkensas. Augusta, Maine. The Honorable Culbart L. Olson, The Honorable Herbert R. 0'Conne, Governor of California, Governor of Maryland, Sacramento, California. Annapolis, Maryland. The Honorable Ralph L. Carr, The Honorable Leverstt Saltonstall, Governor of Colorado, Governor of Massachusetts, Denver, Colorado. Boston, Massachusetts. The Honorable Robert A. Hurley, The Honorable Murray D. Van Wagoner, Governor of Connecticut, Governor of Michigan, Hartford, Connecticut. Lanaing, Michigan. The Honorable Walter N. Bacon, The Honorable Harold E. Stassen, Governor of Delaware, Governor of Minnesota. Dover, Delaware. St. Paul, Minnesota. The Honorable Spessard L. Holland, The Honorable Paul B. Johnson, Governor of Flárida, Governor of Mississippi, Tallahassee, Florida. Jackson, Mississippi. The Honorable Eugene Talmedge, The Honorable Forrest C. Donnell, Governor of Georgia, Governor of Missouri, Atlanta, Georgia. Jafferson City, Missouri. The Honorable Chase A. Clark, The Honorable San C. Ford, Governor of Idaho, Governor of Nontana, Boise, Idaho. Helena, Montana. The Honorable Dwight H. Green, The Honorable Dwight Griswold, Governor of Illinois, Governor of Nebraska, Springfield, Illinois. Lincoln, Nebraska. The Honorable Henry F. Schricker, The Honorable E. P. Carville, Governor of Indiana, Governor of Nevada, Indianapolis, Indians. Carson city, Nevada. The Honorable George A. Wilson, The Honorable Robert 0. Blood, Governor of Iom, Governor of New Haspshire, Des Moines, Iom. Concord, Her Hampshire. The Honorable Payne H. Ratner, The Honorable Charles Edison, Governor of Kansas, Governor of New Jersey, Topeka, Kansas. Trenton, New Jersey. 83 Regraded Unclassifie The Honorable John B. Miles, The Honorable William H. wills, Governor of New Mexico, Commor of Vermont, Santa Fe, New Mexico. Montpelier, Vermont. The Honorable Herbert H. Lehman, The Honorable Colgate W. Darden, Jr., Governor of New York, Governor of Virginia, Albany, New York. Richmond, Virginia. The Honorable J. Nalville Broughton, The Honorable Arthur B. Langlis, Governor of North Carolina, Governor of Washington, Raleigh, North Carolina. Olympia, Washington, the Honorable John Moses, The Honorable Matthew M. Neely, Governor of North Dakota, Governor of liest Virginia, Sismarck, North Dakota. Charleston, West Virginia, The Honorable John W. Bricker, The Honorable Julius P. Heil, Governor of Chio, Governor of Wisconsin, Columbus, Ohio. Madison, Beconsin. The Honorable Lean C. Phillips, The Honorable Nels H. Smith, Governor of Cklahoma, Governor of Hyoming, Cklahosa City, Oklahoma. Chayenne, Wyoming. The Honorable Charles A. Sprague, Governor of Oregon, Salem, Oregon. The Honorable Arthur H. Jumes, Governor of Pennaylvania, Harrisburg, Pennaylvania. The Honorable J. Howard Hodrath, Ocvernor of Rhode Island, Providence, Phode Island. The Honorable J. E. Barley, Governor of South Carolina, Columbia, South Carolina. The Honorable Harlan J. Bushfield, Governor of South Dakota, Pierre, South Dakota. The Honorable Prentice Cooper, Governor of Tennessee, Nachville, Tennessee. The Sonorable Coke B. Stevenson, Corernor of Twan, Austin, Texas. The Honorable Herbert 8. Mew, Governor of Utah, Salt Lake City, Utah. 84 April 22, 1942 MEMORANDISE TO MR. GRAVES: You may already know this; but if you don't, this will serve E useful purpose. Ir. John McKee of the Federal Reserve Board in ashin ton informs me that the twelve presidents of the Federal Reserve Banks appointed a committee to work with the Trensury on har Sevings Bonds. Mr. Alan Sproul is chairman of this committee, and .r. Williams of the Philadelphia Bank and Mr. Davis of the Lt. Louis Benk are members of the committee with Mr. Sproul. The Board designated Kr. MoKee as the liaison officer between the Board, the Treasury, and the committee. In order to keep this committee and the Federal Reserve Board informed of what we are doing - and I don't think we have done a very good job of it - with Mr. Bell's approval, we are Coing to have Mr. Mills, in addition to devoting him- self to Getting the companies with pay-roll deduction luns to become issuing agents, act as liaison between the Treasury and Federal Reserve Board on Mar Savings Bonds. Therefore, please see that he is kept posted daily so that he can inform Mr. MoKee. I an very anxious that this he done, and done well. 1. 2. Jr. Regraded Unclassified 84 April 22, 1942 MEMORANDUM TO MR. GRAVES: You may already know this; but if you don't, this memorandum will serve E useful purpose. Ir. John MoKee of the Federal Reserve Board in askington informs me that the twelve presidents of the Federal Reserve Banks appointed a committee to work with the Treasury on Mar Sevings Bonds. Mr. Alan Sproul is chairman of this committee, and .r. Williams of the Philadelphia Bank and Mr. Davis of the St. Louis lank are members of the committee with Mr. Sproul. The Board designated Mr. McKee as the liaison officer between the Board, the Treasury, and the committee. In order to keep this committee and the Federal Reserve Board informed of what we are doing - and I don't think we have done a very good job of it - with Mr. Dell's approval, we are going to have Mr. Mills, in addition to devoting him- self to getting the companies with pay-roll deduction lans to become issuing agents, act as liaison between the Treasury and Federal Reserve Board on har Savings Bonds. Therefore, please see that he is kept posted daily 50 that he can inform Mr. MoKee. I am very anxious that this be done, and done well. E. 1. Jr. Regraded Unclassified 85 THE UNDER SECRETARY OF THE TREASURY WASHINGTON April 22, 1942 TO THE SECRETARY: Mr. Wilson Jones of the Federal Reserve Bank of New York telephoned me this afternoon that the Great Atlantic and Pacific Tea Company, which employs some 61,000 persons, came in this afternoon with an application from its eastern division to become an issuing agent for the sale of War Savings bonds. He advised that they were also writing to their Chicago office, requesting that that division also become an issuing agent. This company has eight divisions throughout the country but it desires to qualify only for these two divisions at this time, It expects to qualify for the other divisions as soon as these two are completed. Mr. Jones also advised me that he and Mr. Rounds had a very nice conference this after- noon with Mr. Prentiss, President of General Motors Corporation, which employs 400,000 persons. Mr. Prentiss said that General Motors was contem- plating becoming an issuing agent and he merely wanted to find out how the Federal Reserve Bank of New York issues its bonds. Mr. Jones thought that Mr. Prentiss would take immediate steps to have General Motors qualify as an issuing agent. ema ORDEFENSE Conies to: BUY Mr. Mills Mr. Tickton Pursing Regraded Unclassified 86 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE April 22, 1942 TO Secretary Morgenthau FROM Mr. Has 1. Attached to this memorandum are tables showing (1) the number of agents qualified to 1ssue Defense Savings Bonds, Series E, at the close of business on April 18, classified by type of agent, by Federal Reserve Districts, and (2) the number of such agents on selected dates since May 7, 1941. 2. Agents, other than post offices, qualified to issue Series E savings bonds numbered 21, 123 on April 18, an increase of 111 since April 11. 3. On April 18, there were 1,110 corporations qualified to issue Series E savings bonds on payroll allotment plans in accordance with the instructions contained in your telegram of December 27 to the Federal Reserve Banks. This represented an increase of 60 corporations over last week. Attachments Regraded Unclassified Number of agents qualified to issue Series E Savings Bonds, May 7, 1941 : 1941 : 1942 : May : Sept. : Jan. : Feb. : March : April : April : 7 : 30 : 31 : 28 : 28 : 11 : 18 Commercial and savings banks 7,676 11,571 14,097 14,240 14,331 14,368 14,383 Building and loan associations 739 1,481 2,434 2,560 2,632 2,645 2,662 Credit unions 8 389 2,080 2,479 2,695 2,748 2,765 Other corporations 1/ - - 351 686 931 1,050 1,110 Investment industry - - 37 63 66 65 67 All others 7 27 99 137 135 136 136 Total other than post offices 8,430 13,468 19,098 20,165 20,790 21,012 21,123 Post offices 15,812 16,429 17,123 17,928 18,208 18,305 18,361 Grand total 24,242 29,897 36,221 38,093 38,998 39,317 39,484 Office of the Secretary of the Treasury, April 21, 1942 Division of Research and Statistics. In accordance with telegram of December 27, 1941. 8 Regraded Unclassifie Classificetion of the y er of agente qualified to issue Series E Savings Bonds on April 18 1942 : : Building: : : : : : and : : Other : Invest- : All : Banks : loan : Credit : : corpora-: ment : others : Total : : associa- unions : tione 1/: industry : 2/ : : : tione : : : : Corporations and associations: Federal Reserve District of: Boston 837 253 230 79 1 14 1,414 New York 1,166 257 429 149 17 69 2,087 Philadelphia 357 116 125 223 - I 1,321 Cleveland 1,189 394 353 62 8 2 2,008 Richmond 1,029 196 151 48 5 1 1,433 Atlanta 1,031 168 194 30 - - 1,423 Chicago 2,380 486 286 327 18 28 3,525 St. Louis 1.407 166 82 56 7 1 1,719 Minneapolis 1,283 62 86 8 - 3 1,442 Kansas City 1,789 194 219 25 2 6 2,235 Dallas 864 126 252 64 3 9 1,318 San Francisco 551 244 358 39 3 3 1,198 Subtotal 14,383 2,662 2,765 1,110 67 136 21,123 Post offices I - - - I I 18,361 Grand total 14,383 2,662 2,765 1,110 67 136 39,484 1 Office of the Secretary of the Treasury, Division of Research and Statistics. April 21, 1942 In accordance with telegram of December 27, 1941. / Except post offices. 88 Regraded Unclassified 89 CONFIDENTIAL UNITED STATES SAVINGS BONDS Comparative Statement of Sales During First Eighteen Business Days of April, March and February 1942 (April 1-21, March 1-21, February 1-21) On Basis of Issue Price (Amounts in thousands of dollars) : : Amount of Increase : Percentage of Increase Sales : : or Decrease (-) : or Decrease (-) Item : : : : April : March : April I March : April : March : February : over : over : over : over : : : : March : February : March : February Series I- Post Offices $ 56,246 $ 61,515 $ 70,449 -$ 5,269 -$ 8,934 - 8.6% - 12.7% Series I - E Banks 160,857 181,463 257,910 - 20,606 - 76,447 - 11.4 - 29.6 Series 1- Total 217,104 242,977 328,359 I 25,873 - 85,382 - 10.6 - 26.0 Series 1- Banks 25,733 28.778 41,214 - 3,045 - 12,436 - 10.6 - 30.2 Series G - Banks 110,799 129,728 201,058 - 18,929 - 71,330 - 14.6 - 35.5 Total $353,636 $401,483 $570,631 -$ 47,847 -$169,148 - 11.9% - 29.6% Office of the Secretary of the Treasury, Division of Research and Statistics. April 22, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassified CONFIDEN UNITED STATES SAVINGS BONDS Daily Sales - April, 1942 On Basis of Issue Price (In thousands of dollars) Post Office Bank Bond Sales All Bond Sales Date Bond Sales Series I Series E Series ? Series G Total Series X Series I Series G Total April 1942 1 $ 2,476 $ 10,517 $ 2,380 $ 9,608 $ 22,504 $ 12,993 $ 2,380 $ 9,608 $ 24,980 2 2,999 8,264 2,119 7,570 17,953 11,263 2,119 7,570 20,953 3 3,222 7,572 1,185 6,235 14,992 10,794 1,185 6,235 18,214 4 2,778 9,292 1,387 5.334 16,013 12,070 1,387 5,334 18,790 6 4,961 13,035 2,329 8,027 23,391 17,996 2,329 8,027 28,352 7 2,958 5,722 834 8,983 15,539 8,680 834 8,983 18,497 8 2,309 9,610 1,142 6,562 17,314 11,919 1,142 6,562 19,623 9 2,906 9,304 955 5,715 15,974 12,210 955 5,715 18,880 10 2.730 8,052 1,573 5,261 14,585 10,782 1,573 5,261 17,615 11 2,150 5,224 668 2,720 8,613 7,374 66g 2,720 10,762 13 4,619 17,572 2,432 8,604 28,609 22,192 2,432 8,604 33,228 14 2,513 6,152 1,076 3,333 10,561 8,665 1,076 3,333 13,074 15 2,584 5,102 1,251 5.374 11,728 7,686 1,251 5.374 14,312 16 3,472 10,008 1,400 7.773 19,180 13,480 1,400 7.773 22,652 17 2,690 8,076 850 3,695 12,621 10,766 850 3,695 15,311 18 3,111 7,175 948 3,303 11,426 10,286 948 3.303 14,537 20 5,252 13,334 2,227 9,001 24,562 18,586 2,227 9,001 29,814 21 2,517 6,845 977 3,703 11,525 9,362 977 3,703 14,042 Total $ 56,246 $160,557 $ 25,733 $110,799 $297,389 $217,104 $ 25,733 $110,799 $353,636 Office of the Secretary of the Treasury, Division of Research and Statistics, April 22, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassified Political pick 91 while America is engaged in this great ver for survival, the American people are determined that the MO who risk their lives on our battle lines shall be abundantly supplied with the best vespons and equipment that can be unde. However, the American people are also determined that while our sons are fighting for $21 a month, mm of up who remain at home shall profit from this war. For over 20 years America has asked that the profits be taimen out of my. Today America demands it. We all know that the great majority of American business - and corporations are fair and honset,and that nost of them are doing 8 grand job. Readily and willingly they have adapted themselves to the needs and the rigors of mr-tise production. Tekyo, Berlin and less will soon know what they have accomplished. 1 an confident that " will all be proud of their ashievements. However, in our rush to accelerate war-time production - have not been able to make must estimates of cost and profit margins. Consequently there have been - unintended large profite. Then too, unfortunately, in a country be large as America there are bound to be some business - and a fee corporations who have not boen able to resist the temptation to "capitalise" this margenoy. To correct honset mistakes, and to curb these chiselers without punishing fair see and honest business is a difficult task, but I - sure - can accomplish it. A wide variety of proposals have been advanced to achieve this objective. Each plan advanced has its own peouliar advantages and Regraded Unclassified 92 - 2- likewise its own disadvantages. We know that w will not accomplish our objective by any prefit limitation which will hinder the NET effort or increase the cost of mr. We know that - mut adopt that plan which, while resepturing emees profits and unreasonable increases in private !ncome, will not in any my impode the productive effort of the nation, either by discouraging participation by - or by lessening the efforts of these elready engaged in production. After studying this whole problem and emaining all the plans submitted, I an convinced that our objective of taking the profit out of war can best be accomplished by means of the proposals submitted by the Treasury to the House Ways and Issans Committee. Corporate Profite: The Treasury schedule for corporate income taxes reaches a combined normal and var surtex rate of 55 persent, and an excess profits tax rate of 75 percent. When these rates are combined - u they will be in the case of met corporations furnishing war material - there is a tax of 888.75 on each $100.00 in the highest bracket of tax, and met of these corporate profits will be subjected to that rate of tax. of this 888.75, 88.75 will be deposited to the credit of the corporation as a post-war rebate, to be returned to the corporation after the mr, when corporations will need funds for the reemployment of labor and the re-conversion of facilities from wr-time to civilian production. Such corporate tax rates will do all that is possible to keep the profit out of var without completely elisinating incentive, economy, and efficiency, and the interfering with th tar production. Regraded Unclassified 93 - , - Individual Income TAXES, The individual surtex rates proposed by the Treasury will reach all individual war profits and all salaries paid to individuals by corporations engaged in the war effort. These surtex retes are far more drastic than any 90 have known heretofore, though they are entirely reasonable in view of our great need for revenue. At $50,000 the combined surtex and normal tax rate is 80 percent. The highest rate of tex is reached at a net income of $300,000, at which point the combined rate if 90 percent. The surtex rates in the lower brackets will be very much higher than the present rates. In fact, the increases of individual rates are 80 great that 8 corporation executive who earned $50,000 in 1941 and whose selary was raised to $100,000 in 1942 would increase his net income after taxes by less than 81500, if the Treasury proposal is adopted. The country has recently been shocked at the revelation of the unconscionable increases in salaries and bonuses paid to executives and employees of corporations enjoying MP contracts. Under the Treasury propesals most of these increases will go to the government in individual income taxes since these increases will be subjected to the new Treasury rates on individual incomes. However, W do not need to rely entirely upon these rates or upon any set of rstes. There is a provision in the Internal Reverne Code which restricts the deduction for corporate tax purposes to those amounts of executives' salaries which are reasonable. Thus, in many cases is which unreasonable salaries have been paid the deduction will be lest to the corporation for tax purposes, and the emount paid will nevertheless be taxed to the Regraded Unclassified 94 - 4 - individual recipient. The net tax in such cases may be more than 100 persent of the unreasenable salary I believe these Treasury recommendations represent the fairest, the safeet, and the surest method yet suggested of taking the profits out of war. I urge their speedy adeption by the Congress. Regraded Unclassified "Prists" 95 April 22, 1942 REMORANDUM It is believed that personal and corporation income and excess profite taxes furnish the best method of recapturing war profits and high wartins salaries and that the rates proposed by the Treasury are sufficiently high. This conclusion is substan- tisted by Treasury examination of 1939-1941 data for 55 corporations engaged in whole or in part on govern- mont contracts and selected for study by Mr. Donald Nelson of the war Production board. I. Salaries The increased salaries being paid in customs cases de not require the imposition of a salary limitation for the following reasonst 1. Unreasonable and unnecessary solaries are disallowed as business expense by the Dureau of Internal Revenue. The unreasonable pertion in such case is taxed both to the corporation and to the individual receiving 12. Thue, considering the 000- bined effect of individual and corporate taxes, the payment of unressonable salaries increases the revenue. 2. The proposed personal income tax rates 170 40 high that taxes would take & very large part of salary increases. For example, a person receiving a $50,000 salary would have left under present law 029,561. If his salary were increased to $100,000 and subjected so the proposed rates, he would have left 832,035. Thus, his $50,000 increase would net his an actual increase of lows than $1,500. Even if the comparison is made entirely on the proposed rates, the result 10 similar. Under the proposed rates, a person with a salary of 140,000 would have left after tax $20,235. If his salary Regraded Unclassified 96 - 2 - were increased to $80,000, he would have left 828,375. Thus, his increase of $40,000 would net him $8,140. Under the proposed bill, to have an income of 150,000 after taxes it would be necessary to have an income before income Bax of $289,350. An increase of $1 of salery above $50,000 note the recipient only 20 cente and an increase of #1 above $100,000 note his only 10 cents. 3. In view of the psychological hare which would result from a rigid Income limitation, the injustice that such a limit would create in some onces, and the difficulty under the proposed rates of securing large incomes after taxes, is 10 believed that the Treasury proposals, combined with the present provision disollowing as & deduction unreasonable salaries, is sufficient to meet the situation. 11. Profits It 10 believed that the proposed corporation normal tax, war surtex and excess profite tax rates are adequate and " high 18 should now be imposed. 1. The study shows that of 37 companies for which 1941 date vere available, all but 9 vere sub- jeet to excess profits tax and of those subject to euch taxes, all but 4 had paid profits tax at the highest rates of tax. Thus, under the proposed rates, 24 of the 37 companies would pay the maximum gross rate of 88-3/4 persent on all further sermings received. 2. Some of the biggest and most profitable sorporations, euch " the motor companies, would have received in 1941 substantially less after taxes under the proposed tax retes than they did in 1939 and 1940 descite very substantial increases in net income before taxes. The incose before taxes of General Metors Corporation increased by 94 percent from 1939 to 1941, while its income after taxes would have decreased by 38 percent If the 1941 profits had been taxed at the proposed rates. Regraded Unclassified 97 - 3 - 3. Seme companies with substantial increases before taxes would show small increases after taxes. In 1941 the U. s. Steel Corporation had 1941 not income before taxes 207 persent above that of 1939, while under the proposed rates the 1941 income after taxes would have been only 20 percent higher than the 1939 income after taxes. 4. In a few cases the increase in profits after taxes would have been large even under the proposed rates of tax. In many such cases the company had a high invested capital credit in relation to its base period sernings. Thus reckard Metor Car Company had an increase in profits before taxes of 214 persent from 1939 to 1941 and 68 persent after taxes, comput- ing taxes on 1941 income at the proposed rates. This situation could be corrected by reducing the invested capital credit which reduction has been favored by the Treasury and 10 being actively considered by the Ways and Means Committee. In some other cases the profits increased so rapidly after the base period that the income after taxes also increased substantially. Even so, the increase in Income after taxes would be relatively small. One company, Consolidated Aircraft Corporation, had 1941 profits before taxes of 15 times the 1939 profite. Under the proposed rates 10 would have had only 2-1/2 times as much income after taxes is 1941 as in 1939. It is doubted If any further restriction on She profite beyond the proposed rates would be consistent with the incentive necessary for efficient production. 5. In this connection 11 should be renembered that under the proposed rates If a dollar of excess profitswere subject to the gross meximum tax of 88-3/4 conts and the belance were paid to a stock- holder with income above $100,000, the government would receive 99 cente and the stockholder 1 cent out of the dollar. RBIDED 4/22/42 Regraded Unclassified 98 COMPENSATION OF EXECUTIVES Explanatory statement in respect to the attached tabulations A detailed tabulation is attached for each of 44 selected corpo- rations for which "Compensation of Executives" data are available. Each tabulation shows by company, the name, title, and amount of salary for 1959, 1940, and 1961, for executives who received $10,000 or over for 1941. Salary includes directors' fees, bennes, etc. In those instances where the large number of executives makes a complete tabulation imprastical, data are shown only for those with larger amounts of compensation. The coverage of each tabulation 10 indicated under "Remarks." The salary after Federal income taxes represents the compensation minus Federal income tax computed as follows: (1) Net income assumed to equal amount of salary, (2) Personal exemption of 6. married person allowed - $2,500 for 1939 and $1,500 for 1941, (5) Maximum carned income credit allowed for 1939. Bo earned income credit allowed for 1941, and (4) Normal tax and surtex rates as provided by the Internal Revenue Code applicable to the year 1939 applied to 1939. Normal tax and surtex rates as proposed by the Secretary en March 8, 1942 applied to 1941. The summary tabulation shows identical data in aggregate for each of the 44 corporations. JRT/moe April 23, 1942 Regraded Unclassified SUMMARY OF COMPENDATION OF EXECUTIVES REFORE AND AFTER FEDERAL INCOME TAXES FOR 1989 AND 1941 a 1 Salaries E Salaries after Federal $ : :Increase I income taxes thanker Name of company # I # rin amount 1 I :Change 10f - # 1839 II 1940 I 1941 10f salaries: 1939 1 1941 between recutives 1 I I da 1941 1 : Proposed1939 and riscluded # I I LOVER 1959 I I Rates 11941 1 Regraded Unclassified Alabama Dry Dock and Ship- building Co. $ 92,525 8 153,571 $ 265,321 I 172,996 $ 65,168 $ 103,696 $ 20,507 4 American Car and Foundry Co. 173,088 164,338 114,075 (59,015) 146,398 70,602 (75,795) 5 American Engineering Co. 10,696 15,385 17,575 6,877 10,219 11,790 1,571 1 American Locomotive Co. Not available American Woolen Co.,Ine. 359,225 543,58$ 524,250 185,025 293,871 239,250 ($4,621) 12 Aviation Corporation Not available Baldwin Locomotive Vorks 114,545 175,200 192,747 78,202 105,057 96,651 (6,428) $ Bath Iron Works Corp. 25,800 54,280 37,360 11,560 24,315 25,820 1,007 2 Beesh Aircraft Corp. 10,052 12,500 19,251 9,100 9,614 12,680 2,972 1 Bell Aircraft Corporation $5,000 49,210 124,167 89,167 32,096 49,005 16,997 2 Bendix Aviation Corp. 162,260 122,625 196,200 35,950 140,530 97,871 (42,062) 5 Bendix Aviation Ltd. 12,000 10,750 18,000 6,000 11,598 11,996 507 1 Bethleham Steel Corp. & Subsidiary companies 1,173,283 1,731,294 1,954,458 761,175 794,486 502,11$ (292,575) 10 Bosing Aircraft Co. 56,864 85,855 90,155 51,271 55,811 62,109 6,290 6 Chrysber Corp. 763,500 855,054 891,553 97,853 616,845 854,044 ($62,000) 14 Consolidated Aircraft Corp. 80,000 122,161 164,567 104,567 74,657 93,500 10,912 I Consolidated Steel Corp.,Ltd. (Calif.) 40,400 35,471 66,000 25,600 38,572 44,000 5,628 < Consolidated Steel (Texas) Not available Continental Motors Corp. 30,000 29,604 52,908 22,905 28,099 29,273 1,154 2 Group Skipbuilding (Tim. Cramp and Sene Ship and inglee Building Co. Not available 99 SUMMARY OF COMPENSATION OF EDUCUTIVES BEFORE AND AFTER FEDERAL INCOME TAKE FOR 1989 AND 1941 (CONTINUED) # I a Salaries after Federal I # Salaries :Increase 1 income taxes : Number Hass of company I tin amount $ I :Change 10f 42- = 1959 . 1940 $ 1941 lot salaries: 1939 # 1941 sbetween recutives Regraded Unclassific I 4 I in 1941 # I Proposed 1839 and :included I I I tover 1989 1 4 Rates $1941 E Curtis Wright Net available Dissend-T Motor Car Do. $ 220,647 $ 188,750 $ 395,613 8 174,966 8 197,305 $ 189,487 1 (7,819) 10 Deaglas Aircraft, Ins. 165,715 161,646 253,291 86,576 140,255 106,976 (023'88) 5 LL duPost de Hours and Co. 2,019,109 2,174,679 1,446,761 (572,548)1,117,469 396,951 (720,528) 12 Electric Boat Do. 101,000 105,083 121,000 20,000 89,799 66,290 (23,509) 4 Pord Motor Co. 1,228,000 1,299,101 1,486,550 238,550 278,780 511,168 (SC7,625) 20 General Electric Co. Not available General Machinery Corp. 151,295 165,350 226,100 75,106 133,420 110,858 (18,362) . General Motors Corp. 3,209,945 3,265,130 5,063,210 (125,755)1 798,329 754,017 (1,044,312) as Glenri. Martin Co. 111,529 114,441 145,025 53,494 98,19$ 72,068 (28,239) 4 Gramma Aircraft and Engineering Company 48,160 70,194 96,570 48,420 43,491 44,886 1,5% 2 Galf Shipbuilding Corp. Not available Houston Shipbuilding Copy. Not available Ingalls Shipbuilding Corp. 85,016 95,044 108,000 22,984 78,820 67,550 (11,840) 5 Lookheed Aircraft Corp. 107,700 177,000 475,000 567,500 99,589 166,780 67,241 6 Los Angeles Shipbuilding and Drydosk Do. Not available Moore Drydock Co. 101,000 101,780 107,000 6,000 90,805 65,365 (25,438) 5 Newport Serve Shipbuilding and Drydock Go. Not available for York Shipbuilding Corp. 127,925 240,448 815,700 185,775 118,552 136,142 20,590 6 Marth American Aviation, Inc. 539,010 526,358 $00,050 (38,960) 225,697 113,565 (112,182) 5 Northern Pump Company 49,000 12,000 172,000 123,000 40,441 $8,285 (2,178) 1 Packard Motor Car Go. 570,765 $62,980 442,641 71,876 $21,565 250,165 (91,409) 14 Republic Aviation Carp. 42,629 90,996 93,960 61,561 59,507 $6,198 16,628 4 Robine Drydock and Repair Co. 130,957 106,757 195,800 64,742 117,584 104,568 (18,218) 6 100 Savage Arms Corp. 52,188 60,868 121,540 69,052 47,954 60,850 12,886 3 SUMMARY OF COMPANSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1959 AND 1941 (CONTINUED) # I Salaries 1/ I Salaries after Federal I E :Increase : income taxes Number = I = tin anount = $ :Change 10f - # 1939 $ 1940 I 1941 tof salaries: 1939 #: 1941 between resutives # I # sin 1941 $ I Proposer:1989 and :included Regraded Unclassified & I I jover 1939 I I Rates 11941 1 Sexttle-Tacom Shipbuilding Corp. Not available Sperry Gyreacope Co.,Ine. 137,250 158,284 215,500 78,270 120,446 98,380 (22,066) $ Standard oil Co. (M.J.) 998,100 1,011,416 1,014,531 16,431 767,204 411,394 (355,810) 17 Studsbaker Corp. 305,535 512,000 482,000 128,465 267,169 208,905 (58,264) 11 Sun 041 Company 474,800 495,500 598,782 125,962 402,156 290,281 (111,875) 15 United Aircraft Corp. 186,125 215,245 304,202 118,077 160,658 180,143 (80,515) 0 United States Steel Not available Western Cartridge Co. 85,500 142,000 570,000 284,500 80,237 144,545 64,300 , Western Pipe and Steel Co. (Calif.) 79,500 79,500 119,250 59,750 72,889 62,917 (9,972) 4 Westinghouse Electric a Manufacturing Co. 469,787 555,558 596,167 126,580 545,531 194,706 (148,535) 7 Westinghouse Electric Elevator Company 55,006 36,108 34,725 1,718 28,745 16,566 (10,179) 1 Total 14,590,880 16,118,226 17,977,501 5,597,621 10,580,214 6,662,651 (5,717,554) 500 w In general includes compensation of executives who received $10,000 and over for 1941 and for which 1989 and 1940 data are available. However, for certain corporations with a large maber of executives a higher salary level was adopted. (Prepared by Statistical Section, Income Tax Unit, for Mr. Roy Blough, Director of Tax Research, April 25, 1942.) 101 ALABAMA DRY DOCK AND SHIPBUILDING COMMANY # = . Increase $ Salary after Federal : I Salary 1 in anount $ income taxes less of Executive : Title : $ $ a . of salary $ $ Changes : $ 1940 1941 in 1941 $ 1939 1 1941 = between : I 1939 # I . over 1939' $ Proposed 5 1939 and : $ I 1 = $ Rates $ 1941 D. 1. Danlay President $ 35,085 $ 54,630 $ 88,075 $ 52,990 8 30,335 $ 29,535 $ (600) G. N. Dunlap V.P.,Seay, treas. 20,199 32,432 56,998 36,799 18,580 24,315 5,735 J. N. Orise Visa Pres. 20,199 35,558 63,230 43,031 18,580 25,527 6,947 B. F. Compbell Vice Pres. 16,842 30,951 57,018 40,176 15,693 24,318 8,625 Total 92,325 153,571 265,321 172,996 83,188 103,695 20,507 Remarks: All medives with salary of $10,000 and ever are included. 102 Regraded Unclassified AMERICAN CAR AND FOUNTRY COMPANY 1 I - I Salary after Federal I I Salary :Increase I income taxes law of Executive 4 Title I sin amount # I Changes - I 1959 I 1940 $ 1941 10f salary - 1989 1 1041 between Regraded Unclassified I I I I in 1941 I 3 :1909 and # I I I lover 1989 = $ :1941 I I I I I I # I Not shown. Official of Carter Carburetor Company 8 20,288 $ 27,068 $ 20,671 8 585 6 18,658 $ 15,332 $ (5,324) Net shown. Official of Carter Carberator Company 66,000 91,000 21,328 (44,672) 51,271 13,558 (57,753) Not shown. Official of incrican Car and Foundry Co. 22,500 20,000 21,458 (1,042) 20,496 15,598 ( 6,900) Not shows. Official of American Car and Foundry Co. 24,300 22,500 21,458 ( 2,842) 21,954 15,596 ( 8,358) not show. Official of American Car and Fountry Co. 40,000 25,750 26,958 (11,042) 34,021 16,540 (17,481) Total 173,088 184,338 114,073 (59,015) 146,398 70,602 (75,798) Benarks: There are 50 additional officers with total salary of $900,245 in 1941 for which there are no available data for 1959. 103 AMERICAN ENGINEERING COMPANY # # a I Salary after Federal : = Salary Increase # income taxes Name of Executive I Title I sin amount I 1 :Changes # I 1939 2 1940 # 1941 10f salary a 1959 $ 1941 between a 1 I # sin 1941 I 1 :1959 and a I I I Lover 1959 I I :1941 William V. Senter Pree. 8 10,698 $ 15,383 $ 17,573 $ 6,877 $ 10,219 $ 11,790 $ 1,571 Benarks: The Vice President and General Manger with a salary of $14,563 for 1941 and $12,307 for 1940 is the only other officer with & salary of $10,000 and over, but his salary is net available for 1959. 104 1 Regraded Unclassified AMERICAN WOOLEN COMPANY I # I . Salary after I I Salary sincrease - Federal Issues Taxes 1 I da amount: 1 Changes law of Executive I Title I 1989 I 1940 I 1941 sof salary: 1939 - 1941 between : I I - in 1941 . I $1930 and # I . 1 lever 1939, & 1941 I M. Penilsten free.) Sales Mgr. I 73,125 6 75,000 $ 128,000 I 51,875 $ 55,227 e 38,546 8 (21,662) P. 8. Comett Treasurer 18,000 10,000 25,000 7,000 16,701 15,040 ( 1,661) 1. E. Mantgemery Clerk è Gen. Commel 18,000 18,000 25,000 7,000 16,701 18,040 C 1,00 c. 1. Silver Don. Sales Mgr. 45,000 45,853 66,000 20,000 57,636 23,845 (11,751) 1. 5. Prestrich Div. Mgr. 27,000 27,750 42,000 15,000 24,091 20,796 ( 5,294) A. B. Valls, die Div. Mgr. 27,000 27,000 40,000 13,000 24,091 20,235 ( 3,856 1. c. Sobser Credit Mgr. 22,500 22,500 28,000 5,500 20,496 16,106 ( 4,301 1. F. Williams Res. Mgr. 25,000 25,000 45,000 20,000 22,611 21,636 ( 676) A. N. Bidy Res. Mgr. 15,000 15,000 35,000 20,000 14,076 18,656 4,579 Y. 1. Greenwy Res. Mgr. 21,100 22,000 34,250 13,150 19,334 18,415 ( 919) 1. E. Leasek Res. Mgr. 22,500 22,500 32,500 10,000 20,496 17,816 ( 2,681) all 6. Res. Mgr. 25,000 25,000 27,500 2,500 22,511 16,01$ ( 6,496) Totals 339,225 343,583 524,250 185,025 293,871 $$9,250 (84,621) learks, Data are shown only for officers with salary of $25,000 and over. There at are 14 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $223,500 for 1941. 105 Regraded Unclassified BALDWIN LOCOMOTIVE WORKS $ # - & Salary after Federal I I Salary Increase I income taxes Mame of Executive I Title I # I sin used I I Changes # a 1959 8 1940 I 1941 sof salary & 1939 I 1941 between 8 I # # sin 1941 # - $1000 and I I a $ jever 1989 I I 1981 Charles L Brinley Not stated $ $6,220 $ 54,240 $ 60,220 $ 24,000 $ 51,186 $ 24,959 $ (6,227) William 1. Harman Bot stated 25,100 56,240 40,180 16,080 22,590 20,286 (2,304) William H. Wisterrood Not stated 21,975 56,220 37,847 15,872 20,000 19,586 ( 494) Charles & Acker Bet stated 13,250 23,500 26,500 13,250 12,520 15,625 5,105 Carlos F. Mayes Not stated 18,000 25,000 28,000 10,000 16,701 16,196 ( BOS) Totals 114,545 175,200 192,747 78,202 103,057 96,631 (6,428) Remarks: Data are shown only for officers with salary of $25,000 and over for 1941. There are 28 additional officers with a salary of $10,000 and under $25,000 for 1941. The total of these salaries is $416,530 for 1941. 106 Regraded Unclassified BATH IRON WORKS CORPORATION # # # I # Salary Salary after Federal # :Increase I income taxes Name of Executive # Title $ # I tin amount # $ :Changes # # 1939 I 1940 $ 1941 of salary # 1959 I 1941 between $ a # I sin 1941 # # $1959 and # I I 1 lover 1989 # 1 #1941 W. S. Newell Pres. $ 15,000 $ 19,880 $ 21,780 $ 6,780 $ 14,076 $ 14,544 $ 468 A. M. Main V. P. 10,800 14,400 15,580 4,780 10,237 10,776 539 Total 25,600 $4,280 37,360 11,560 24,315 25,320 1,007 Remarks: There is an additional vice-president with a salary of $11,610 for 1941. Salary for 1959 and 1940 not available. 107 Regraded Unclassified BEECH AIRCRAFT CORPORATION - a # # Salary after Federal If # Salary :Inorease . income taxes . # sin amount # = sChanges Name of Executive - Title # 1939 I 1940 I 1941 sef salary I 1939 I 1941 stoween I = I I sin 1941 I a 1939 and # : a I lover 1939 # 1 1941 Walter H. Beach Pres. 8 10,032 $ 12,600 # 19,251 8 9,199 vto's t $ 12,586 $ 2,972 Remarks: This is the only officer listed with a salary of $10,000 and over for 1939, 1940 or 1941. 108 Regraded Unclassified BELL AIRCRAFT CORPORATION E # I . Salary after Federal - # Salary :Increase a income taxes Name of Executive # Title a I $ in amount $ 8 :Changes # a 1959 E 1940 I 1941 10f salary # 1959 = 1941 rbstwoom I a # I sin 1941 I # 1989 and 8 8 # I 10ver 1959 $ I $1941 Lawrence D. Bell Pres. 8 25,000 $ 35,290 $ 85,000 $ 60,000 $ 22,511 - 29,105 $ 6,504 Bay P. Whitman V. Pres. 10,000 15,980 59,167 29,157 9,585 19,988 10,405 Total 35,000 49,210 124,167 89,167 32,000 49,085 16,997 Remarks: There are 9 additional officers with total salary of $125,873 in 1941 but for which 1959 and 1940 data are not available. 109 Regraded-Unclassified BENDIX AVIATION C. ORATION # # . 8 Salary after Federal # a Salary Increase . income tasse # # ,in amount 1 . sChanges has of Executive : Title $ 1939 . 1940 # 1941 of salary . 1959 . 1941 between I - . # ,in 1941 . - $1959 and I # . . 10907 1939 I $ $1941 Vineent Bendix President 6 50,000 # 37,800 $ 60,000 6 10,000 $ 41,131 $ 24,915 $ (16,216) B. 1. Palmer V.P. à Treas. 20,000 18,750 $0,000 10,000 10,568 16,915 (1,450) D. 0. Theme Vice Pres. 87,800 20,625 83,000 5,500 24,485 17,995 (6,491) Charles Marous Vice Pres. 39,750 27,000 43,200 3,450 35,833 21,131 (12,702) W. L. MeGrath Vies Pres. 25,000 18,750 $0,000 5,000 22,581 16,915 (6,006) Total 162,230 122,635 198,200 33,960 140,536 97,871 (42.665) tearts, Data includes all officers with salary of $10,000 and ever. 110 Regraded Unclassified BENDIX AVIATION, LTD # 1 = - Salary after Federal # # Salary Increase # income taxes Name of Executive I Title $ I 8 sin amount # # Changes # . 1959 # 1940 a 1941 10f salary = 1989 # 1941 sbotworn I # # a sin 1941 1 a 11959 and 1 I a I gover 1980 a a $1941 Pulmer Michels V. P. $ 12,000 $ 10,750 $ 18,000 $ 6,000 $ 11,398 $ 11,996 $ 507 Remarks: This is the only officer reseiving a salary of $10,000 and over for any of the years 1939, 1940 and 1941. 111 Regraded Unclassified STEEL CORPORATION AND SUBSIDIARY COMPANIES . I e . Salary after Federal # # Salary Increase = issue basse I I sin amount Changes has of Insertive . Title # 1939 I 1940 E 1941 of salary. 1989 # 1941 between # = # . da 1941 . * 1930 and . # a = lover 1989, 1 1941 Regraded Γ. d. Iron Treas. $ 25,632 8 42,946 4 47,810 8 22,178 8 23,020 1 22,330 8 € 680) Pres. (Pm.) 271,224 478,144 637,724 266,500 129,648 74,837 (85,711) c. do Desk Vice fres. 117,304 50,000 50,000 (67,304) 76,206 22,056 (51,549 1 s Visa Pres. 117,304 179,442 197,317 79,958 76,206 40,786 1.1.20 Vice Tree. ASes. 84,352 139,506 188,393 71,061 60,700 26,606 24,176 d. L Gross Visa Pres. 80,190 84,680 94,620 44,422 41,208 30,309 (10,879) W. L stears The Pres. 60,406 48,220 56,472 16,000 14,334 24,200 (10,118) 7. A. Shick Vise has. Monyt. 84,332 130,800 156,393 71,001 60,780 30,604 $8,178 do L. larkin Vise Pres. 65,198 89,690 99,620 44,422 44,610 30,969 (13,681 Chas. R. Helton Visa Pres. 65,100 $9,600 109,620 44,422 50,814 82,007 (18,787 d. P. Bender fress. 25,638 42,946 47,810 22,178 23,011 21,130 ( 691 N. 1. Johnstone Asst. See. 18,348 37,843 45,565 16,622 26,560 21,757 3,006 1. L Driver Asst. See. 14,922 85,798 41,220 16,298 22,449 20,577 1,072 R. 1. Schlotteen Anst. Comptrellor 25,078 34,068 41,622 16,544 22,573 50,000 1,096 Paul Mackall Vise Pres. (Del.) 117,384 179,443 197,329 70,955 76,200 40,796 (33,409 L I. Marley Pres. of Sub. 40,198 51,635 57,165 16,957 24,160 24,345 e 9,825) Total 1,173,288 1,731,294 1,984,458 761,175 794,408 $08,116 (202,275) lamb Date are alows only for officers with salary of $86,000 and over for 1941. There are 12 additional officers with salary of $10,000 and unler $35,000 for 1941, for which salary is reported for 1989 and 1940. The total of these salaries is $271,249 for 1941. 112 BOEING AIRCRAFT COMPANY # # II = Salary after Federal I I Salary :Ingresse I income texas E # is anount - - Xame of Executive # Title I 1939 - 1940 I 1941 ief salary a 1939 - 1941 I # # I :in 1941 # a 11939 and E E I I 10TH 1939 $ I :1941 0. L. Igivedt Chairman $ 20,000 $ 20,000 $ 20,000 $ - $ 15,411 # 12,940 $ ( 5.472) P. 6. Johnson President 6,190 20,000 20,000 13,810 6,067 12,940 6,873 F. P. Landan Vice Pres. 10,667 11,000 11,000 333 10,193 8,155 ( 2,008) R. J. Minshall Visa Pres. 11,333 12,000 12,000 199 10.795 8,785 ( 2,010) J. P. Marray Vice Pres. 9,001 10.035 11.135 2,134 5,672 8,269 ( . (403) I. o. West Exce. V.P. 1,673 10,800 16,000 14,327 1,673 10,990 9,327 Total 58,864 83,835 90,135 31.271 55,811 62,109 6,298 Remarks: There are M additional officers with salary of $10,000 and ever. 113 Regraded Unclassified CERTIFIED CORPORATION # $ Intrease I Salary after Peteral 8 . Salary 'ta am 1 Imm taxes liene of 1 Title $ of salary : , 1 Gaage $ # $ I 'in 1941 $ . I 1939 1939 $ 1961 1941 I between # 1940 $ 'one 1939 1 $ I 1939 and Regraded Unclassified $ 1 I I $ I $ 1942 I. 1. Kaller stated 8 100,000 $ 200,000 $ 100,000 $ - $ 67,531 8 31,035 $ (36,496) J. & Pields stated 50,000 50,000 50,000 - 41,131 22,855 (18,276) Ayron c. Pay stated 72,000 72,000 72,000 - 54,491 27,095 (27,534) of I of stated 50,000 90,000 90,000 - 63,331 29,803 (33,526) F. Letyard Nitchall stated 60,000 60,000 60,000 - 47,671 24,905 (22,736) 4. Yes Der See stated 37,500 47,284 50,000 12,500 32,146 22,833 (9,291) I 3 will stated 45,000 68,750 72,000 27,000 37,636 27,095 (10,541) Prod I. Zedar stated 85,000 85,000 $5,000 - 61,001 29,105 (31,976) di d stated 60,000 60,000 60,000 - 47,672 24,925 (22,756) Carl low stated 60,000 60,000 60,000 - 47,672 D. 4. 24,905 (22,756) stated 35,000 43,633 50,000 15,000 30,271 22,855 7,424) s I of stated 26,500 35,567 42,333 15,833 23,696 20,009 1. J. O'Neil 2,807) stated 32,500 43,633 50,000 17,500 28,356 22,055 5,501) D. 8. Mdine Net stated 40,000 44,167 50,000 10,000 34,021 22,055 (11,166) Total 793,500 855,034 891,333 97,833 614,846 354,044 (262,800) Benerker Data are shown for only these efficers with salary of over $40,000 in 1941. There are 92 additional officers with salary of $10,000 and under $40,000 with a total salary of $1,415,936 in 1941. 114 CONSOLIDATED AIRCRAFT CORPORATION . # ilsorease in I Salary after Federal # . Salary amount of sal-1 issues taxes # a sary in 1941 - I Changes less of Executive . Title . 1939 I 1940 $ 1941 lever 1939 . 1988 - 1941 rbotwoom 8 . . a # . - $1939 and II I a . . E I 1941 I. M. Ladden Vice-Pros. $ 18,000 8 25,630 + 57,506 8 19,805 - 16,701 8 19,457 $ 2,756 1. 1. Flest President-Mgr. 20,000 35,943 68,505 42,505 18,411 25,396 6,985 C. T. Leigh Visa Pres. 14,000 20,036 28,130 14,130 13,191 16,242 5,051 c. 4. Yes Duesa Vise Pros. 16,000 22,443 31,255 15,256 14,955 17,367 2,411 J. L. Kelley Assistant See. 12,000 18,100 25,172 15,172 11,590 16,107 3,709 Total 80,000 122,161 184,567 104,567 74,657 93,569 18,912 Remarks: Data are shows ealy for officers with salary of $25,000 and over for 1941. There are 17 additional officers with salary of $10,000 and under $25,000 for 1941, for which salary is reported for 1989 and 1940. The total of these salaries is $238,514 for 1941. 115 Regraded Unclassified CONSOLIDATED STEEL CORPORATION, LIMITSD I # # # Salary after Federal # a Salary 1/ Increase # Income taxes I # rin amount a - # Changes Issue of Executive # Title 2 1939 I 1940 3 1941 102 salary # 1939 = 1941 ribetrem I # # I its 1941 - I :1939 and I I : = rever 1939 I I 11941 D. 0. Honderson Net stated $ 16,000 $ 13,667 $ 22,000 $ 6,000 $ 14,956 $ 13,825 $ ( 1,131) Alden 0. Reach Not stated 14,000 11.333 22,000 5,000 13.191 13,825 634 L.R. Marl Net stated 6,350 5.333 12,000 5,650 6,221 8,785 2,564 I. c. Cranfill Net stated 4,050 3,138 10,000 5.950 4,004 7.565 3,561 Total 40,400 33.471 66,000 25,600 38.372 44,000 5,628 1939 data for calendar year - 1940 for period Jamary 1, 1940 to August 31, 1940 - 1941 fiscal year ended August 31, 1941. Remarks: there is ⑉ additional officer with & salary of $15,000 for 1941, but 20 salary reported for 1939 and 1940. # 116 Regraded Unclassified CONTINENTAL MOTORS CORPORATION I I a = Salary after Federal a # Salary . Increase I income taxes t I I in amount - Changes liane of Executive I Title a 1939 . 1940 I 1941 I of salary . 1939 I 1941 ibstreen I * 1 a # in 1941 a 1 1939 and I E # I : over 1939 I 1 11941 1. R. Angell, Sr. Technical Adviser $ 18,000 8 13,000 $ 12,000 $ (6,000) $ 16,701 8 8,785 4 (7,916) Clarense Bosse President 12,000 16,604 40,903 28,903 11,398 20,488 9,000 Total 30,000 29,604 62,903 22,903 28,099 29,273 1,174 Rearks: 6 additional officers have salaries of $10,000 and over for 1941, but their salaries are not reported for 1939 or 1940. The total of the 1941 salaries for these 5 additional officers is $109,165. 117 Regraded Unclassified DIAMOND T. MOTOR A COMPANY # $ I Increase . Salary after Faleral # # Salary 1 in amount $ from texas lane of Insurative $ Title # , $ # of salary' . $ = 5. $ * $ 1940 1941 in 1941 $ 1939 $ $ 1941 I between 1939 I $ over 1939' $ 5. 1939 and a $ I E . = $ 1 1941 c. A. Tilt Pres.,Trees. $ 45,000 $ 45,000 $ 60,000 $ 15,000 $ 37,636 6 24,915 $ (12,721) if of 1 V.P.,S.Mr. 23,735 22,177 59,152 35,417 21,496 24,745 3,249 Sidney 4. Cook V.P.,Sexy. 23,735 22,177 59,152 35,417 21,496 24,745 3,249 c. 4. Paires V.P.,G.Mr. 23,735 22,177 59,152 35,417 21,496 24,745 3,249 1. c. Inburces Pareh.Agt. 13,186 13,321 33,973 20,787 12,463 18,326 5,063 1. c. Maley, Jr. V.P.,S.Mr. 13,686 15,321 33,973 20,257 12,910 18,326 5,426 1. J. Sellearn I 17,300 14,491 18,696 1,396 16,092 12,329 (3,763) Dist. lip. 10,006 10,454 10,771 765 9,990 8,043 (1,547) C.O. Wirisk Mat.Aest.Rep. 38,196 10,926 41,155 2,959 32,668 20,558 (12,110) G. c. Stevens Chge,Branch 12,068 12,706 19,509 7,521 11,459 12,755 1,2% Total 220,647 188,750 395,613 174,966 197,306 109,487 (7,819) Amarks There are 19 additional officers with salary of $10,000 or nate for 1941, for which salaries for 1939 or 1940 are not swailable. 118 Regraded Unclassified DOUGLAS AIRCRAFT COMPANY INCORPORATED a I I I I I Salary Increase Salary after Federal I 1 in - Income taxes I II I 2 Fame of Executive I Title - 1939 # 1940 1941 : of salary 1939 I : : 1941 # # # in 1941 I I - a I over 1939 $ 1939 at $ 4 I I I a 1941 Γ. V. Comans Not stated $ 9,000 $ 11,500 # 20,500 $ 11,500 # 8,671 $ 13,165 $ 4,494 Carl 4. Cever Net stated 30,000 37,500 52,500 22,500 26,433 23,415 ( 3,026) Denald V. Deuglas Net stated 66,667 75,000 105,000 38,333 51,65% 31,565 ( 20,086) of of Net stated 37,298 12,646 42.791 5,493 31,994 21,016 ( 10,978) of I 4 Net stated 23,750 25,000 32,500 8.750 21,508 27,815 ( 3.693) Total 166,715 161,646 253,291 86.576 140,255 106,976 ( 33.279) Date are shown only for efficers with salary of $20,000 and 0747 for 1941. 16 additional officers reserved salary of $20,000 and ever for 1941. the total salary of these 16 officers for 1941 Le $198,570. 119 Regraded Unclassified 1. I. DUPOWT DE NEMOURS AND COMPANY I I 1 a Delary after Federal : a Salary - Increase 1 income taxes I # I is anount $ 1939 $ 1941 tChanges lane of Exerative I Title # 1939 I 1940 1 1941 195 salary # I rbstrvem 1 # - I in 1941 a I - 11939 and I I sever 1939 E Regraded Unclassified I # 11941 J. thempson Drown Vice Pres. $ 174,825 $ 190,187 $ 120,470 $((5%359) 1 95.593 $ 33,112 $ (62,481) V. s. Carpenter, Jr. President. 213,806 290.766 214,470 664 109.400 42,512 (66,888) J. E. Crame Vice Pres. 179,394 194,587 116,930 ( 62,484) 97.238 32.758 (64,450) 4. 1. schole Vice Pres. 178,435 198,582 129,990 96,893 34,064 (62,829) V. P. Harrington Tice Pres. 179,605 197,178 122,670 ( 57.0433 97.343 33.332 (64,011) de V. McCay Vice Pres. 168,105 186,698 122,690 - 35.095) 93,203 33.334 (59,869) c. K. A. Stine Vice Pres. 172,915 109,248 120,470 ( 52,445) 94,905 33,118 (61,793) 7. à Wardenburg Gm, Mer. 140,196 151,866 90,970 ( 49,226) 62,880 29,941 (52,939) Gam. Mr. 111,508 101,864 92,990 ( 18,518) 72.979 30,193 (41.786) Villiam Richter Gen. Mgr. 162,763 171,493 94,890 ( 67.873) 91,250 30,421 (60,829) 1. 0. Rebinson Goa. Mgr. 169,655 184,115 107,620 ( 62,035) 93.732 31,827 (61,905) L. A. Terkee Das. Mgr. 167,742 118,095 112,601 ( 55,141) 93,043 32,325 (60,718) Total 2,019,109 2,174,679 1,446,761 (572.348) 1,117,459 396,931 (720,528) Remarker Date are shows ealy for officers with salary of $90,000 and over for 1941. There are 27 additional officers with salary of $10,000 and under $90,000 for 1941. the total of these salaries is $1,187,453 for 1941. 120 ELECTRIC BOAT COMPANY # # # 1 Salary Salary after Federal = # :Inerease #: income taxes Name of Executive E Title I 8 # is amount # I Changes : I 1989 I 1940 a 1941 10f salary = 1950 I 1941 I # 1 = in 1941 . I $1959 and I $ I E lover 1959 I I $1941 H. Carsi Pres. $ 30,000 $ 31,000 $ 36,000 $ 6,000 $ 26,431 18,975 $ (7,456) H. R. Sutplia 1. Pres. 30,000 31,000 56,000 6,000 26,431 18,975 (7,456) T. Y. Spear Y. Pres. 30,000 31,000 36,000 6,000 26,431 18,975 (7,458) H. 4. Taylor Treasurer 11,000 12,083 15,000 2,000 10,506 9,365 (1,141) Total 101,000 105,085 121,000 20,000 89,799 06,290 (23,509) Benarker All executives with salary of $10,000 and over are included. 121 Regraded Unclassified $ $ $ Increase $ Salary after Poderal # # Salary = € increa taxes is anount # $ lisas of Insultive Title , of salary 9 $ $ Gangee . I : I 1 1. = = between $ # 1939 . 1940 1941 in 1941 1939 1941 1 I # I I 1939 und me 1939 I I , 1 E 1 $ $ 1961 M. L. Bricker Not stated 6 52,000 $ 56,307 $ 67,873 $ 15,873 $ 42,511 $ 26,362 6 (16,149) E. J. Cameren Not stated 39,000 40,505 43,005 4,005 33,274 21,077 (12,194) B. J. traig Not stated 104,000 109,466 116,082 12,082 69,126 32,673 (36,453) John Granford Not stated 49,500 52,812 58,874 9,374 40,786 24,690 (16,096) 1. c. Daes Not stated 32,500 45,175 51,223 18,723 28,356 23,148 5,208) D. Pard Not stated 143,000 144,620 234,757 91,757 83,946 44,541 (39,405) Not stated 54,500 54,582 56,102 1,602 44,156 24,136 (20,020) P. 1. Martin Not stated 169,000 178,259 02,983 (86,017) 93,496 28,823 (64,673) Ilernan L Moskle Not stated 39,000 41,688 50,237 11,237 33,271 22,912 (10,359) I. 7. Place Net stated 26,000 28,548 37,010 11,010 23,301 19,299 ( 4,002) Net stated 19,000 21,002 45,027 26,027 17,561 21,643 4,062 1. I. Maharge Bet stated 35,000 37,922 42,964 7,964 30,271 21,064 s 9,207) L. s. Shaldrisk Net stated 35,000 37,629 47,653 12,653 30,272 22,292 7,979) Charles L formern Not stated 169,000 177,005 220,005 51,005 93,496 43,066 (90,430) 1. 1. Wibel Net stated 78,000 82,951 101,051 23,051 57,751 31,161 (26,590) 1. 1. Daris Not stated 47,000 475000 47,000 39,061 22,135 (16,927) 1 J. - Bet stated 41,500 43,900 41,500 - 35,116 20,655 (14,461) Del Fuller Not stated 39,000 41,809 46,350 7,350 33,272 21,979 (11,292) 1. - Not stated 26,500 31,072 39,585 11,085 25,276 20,119 ( 5,157) 1. 1. lass Not stated 27,500 29,250 37,269 9,769 24,486 19,301 < 5,105) Total 1,228,000 1,299,101 1,466,550 238,550 578,780 511,156 (367,625) Banks Date are above only for officers with salary of $35,000 and over for 1941. There are 100 additional officers with salary of $10,000 and under $35,000 for 1941. The total of these calaries is $2,023,764 for 1941. 122 Regraded Unclassified THE GENERAL MACHINERY CORPORATION : 1 Salary I I Salary after Federal 2 : :Increase . income taxes Name of Executive 1 Title I I I :in amount I # :Changes # = 1989 I 1940 I 1941 10f salary : 1989 I 1941 thetwoom : # I 3 tin 1941 # I t1959 and = # I I sand 1939 # I $1941 G. he Rentschler Pres. $ 62,000 $ 65,000 $ 95,000 1 31,000 40 48,891 8 50,195 $ (18,698) J. & Paterson v. Pres. 17,000 19,000 25,000 8,000 15,881 16,040 ( 782) 1. 4. Bentschler T. Pres. 7,800 8,850 16,500 8,700 7,567 11,245 3,678 A. L. Ayurlein V. Pres. 23,000 25,000 22,500 ( 500) 20,901 14,065 c. T. Ziegler V. Pres. 12,500 12,500 18,000 $00 11,850 9,365 { 8,868) 2,485 Frederick Rits Plant Supt. 13,000 18,200 18,000 5,000 12,297 11,096 ( 302) A. C. Wais Plant Supt. 11,025 15,500 20,000 8,975 10,517 12,940 2,423 P. C. McBath Saleman 5,870 8,269 18,100 12,430 5,566 12,043 6,477 Total 151,995 165,359 226,100 76,105 133,420 118,858 (16,562) Remarks: There are 8 additional officers with salaries of $10,000 and over for 1941. These salaries total $53,500. No 1959 data available. 123 Regraded. Unclassified GENERAL MOTORS CORPORATION I 3 . # Salary after Federal 2 Salary Increase I income taxes lace of Executive a Title = in amount $ & Changes # = 1939 a 1940 = That 10f salary & 1989 = 1941 between I = 1 = # in 1941 . : 11939 and a # a a # over 1939 I - 1941 # E I I 1 4 I I Anderson, Anthony C. Comptroller $ 62,395 8 61,585 $ 54,700 $ 7,687)$ 49,132 $ 23,657 $ (25,275) Bradlay, Albert T. Pres. 258,176 254,668 235,224 (22,952) 124,572 44,587 (79,785) Breech, Emest 1. V. Pres. 86,430 95,914 92,537 6,107 61,724 50,159 (31,886) Brown, Donaldson V. Pres. 258,124 254,887 227,252 (80,872) 124,358 43,790 (80,566 Donner, Frederio G. V. Pres. 47,255 56,010 85,954 38,699 59,237 29,259 0,296 Earl, Harley J. V. Pres. 102,816 110,869 99,810 ( 3,206) 68,676 30,988 (37,658) Evans, Ronald K. V. Pres. 120,509 152,829 129,220 8,911 75,323 35,967 (41,858) Fisher, Lawrense P. 1. Pres. 206,762 193,774 184,715 (72,047) 107,00$ 34,536 (72,469 Carrett, Paul V. Pres. 39,511 59,143 43,864 4,355 33,654 21,517 (12,337) Grant, Richard H. V. Pres. 206,712 204,016 146,698 (60,014) 106,988 35,735 (71,255) Eagan, Reary M. V. Pree. 65,817 72,002 88,454 22,657 51,167 29,509 (21,570) Hunt, Ornerd 1. V. Pres. 206,712 224,751 274,734 68,022 106,988 48,538 (55,450) Emitie, Bayard,D. V. Pres. 105,309 121,496 94,809 (10,500) 69,623 50,412 (39,211) Mooney, Junes D. V. Pres. 206,612 178,262 138,876 (67,736) 108,954 54,958 (72,001) Prentis, Mayer L. Treasurer 88,443 84,486 70,649 (17,794) 62,630 26,062 (35,768) Slean, Alfred P. Jr. Ch.of Brd. 200,450 200,500 200,560 100 104,818 41,120 (63,698) Smith, John T. V. Pres. 268,176 254,068 227,152 (31,024) 124,372 45,780 (80,592) Spenser, Louis a. Dir.,Pat.Sec. 27,858 36,174 40,844 13,208 24,595 20,472 4,124 Tanner, Floyd O. V. Pres. 88,816 77,165 45,903 (42,915) 62,798 21,872 (40,926) Williams, William C.,Jr. V. Pres. 55,998 70,268 96,752 40,754 45,180 30,643 (14,407) Wilson, Charles 8. President 258,076 286,826 327,973 69,807 124,340 53,862 (70,475) Kettering, Charles F. Gen.Mgr. 258,408 254,960 226,752 (31,658) 124,447 43,740 (50,707) Total 3,208,945 3,205,130 3,083,210 (125,735) 1,798,529 754,017 (1,044,518) Benarks: Data are shown only for officers with salary (excluding bonne awards) of $25,000 and over for 1941. Honever, the amount of salary tabulated includes bonus awards. There are 62 additional officers with salary (excluding bones awards) of $10,000 and under $25,000 for 1941, for which salary is reported for 1989 and 1940. The total of these salaries (exclusting borns awards) is $755,792 for 1941. 124 Regraded Unclassified GLENN L. MARTIN COMPANY # # . - Salary after Federal = # Salary :Inerease I insome tame If # :in amount a # schanges Name of Executive 1 Title # 1939 # 1940 # 1941 10f salary I 1939 # 1941 shotwoon I # I # ,in 1941 I I 1989 and # # # I 10ver 1939 # $ 1941 Glenn L. Martin Pres. 8 55,970 $ 40,200 8 60,260 $ 26,290 8 29,488 . 24,957 8 (4,521) J.' Hartson Viee Pres. 35,857 34,570 37,408 1,551 30,914 19,426 (11,488) H. P. Volmer Vice Pres. 26,124 26,563 30,220 2,096 24,979 16,994 (7,985) M. 0. Shook Treasurer 13,573 13,108 17,135 3,557 12,814 11,569 (1,245) Total 111,529 114,441 145,023 35,494 98,195 72,958 (25,239) Bearks: One additional vice president had salary of $22,572 for 1941, but no salary reported for him for 1939 and 1940. 125 Regraded Unclassified GRUMMAN AIRCRAFT NGINEERING CORPORATION # # Increase . Salary after Federal lane of Executive Title # a Salary sin amount : income taxes = 8 10f salary 1 $ a Changes I 1939 I 1940 1 1961 :in 1941 # 1 1939 8. 1941 . between * : E # over 1939 # I . # 1939 and $ I I 1 - . I 1941 eroy 1. Crumman Not stated 8 26,580 # 42,097 $ 50,785 8 24,205 - 23,759 8 23,043 - (716) loon Swirbul Not stated 21,580 37,097 45,785 24,206 19,732 21,845 2,111 Total 48,160 79,194 96,570 48,410 43,491 44,806 1,395 temarks For 1941 there are 5 additional officers with salaries of $10,000 and over. The total salary of these officers is $76,043. 126 Regraded Unclassified THE INGALLS SHIPBUILDING CORPORATION $ I * 8 Salary after Federal $ a Salary :Increase E imm taxes Name of Executive $ Title I = # da amount I I Changes I 1 1939 # 1940 - 1941 realary in # 1939 I 1941 between I I I - 1941 over I 1 1980 and I 1 $ $ 1,1980 I E 12942 B. L. Ingalls Quir.of Ind. $ 25,000 $ 25,000 $ 25,000 - $ 22,511 s 15,000 $ (7,672) R. I. Ingalls, Jr. V. Pres. 15,000 15,000 15,000 - 14,076 10,465 (3,611) Monro 1. Lamier Pres. 15,000 19,167 25,000 $ 10,000 14,076 15,040 964 W. R. Quart V. Pres. 16,266 20,877 25,000 9,754 15,190 15,040 ( 190) A. J. Grassick Gm. Mgr. of 13,750 15,000 18,000 4,250 12,967 11,996 ( 972) Shipyard Total 86,018 95,044 108,000 22,984 78,820 67,580 (11,240) Remarks: There are - other Afficers receiving a salary of $10,000 and over the 1941. 127 Regraded Unclassified LOCKHEED AIRCRAFT CORPORATION # # $ a Salary after Federal . I Salary I Increase I issues taxes I I . in amount 1 # sChanges Name of Executive . Title # 1939 # 1940 # 1961 a of salary # 1939 If 1941 # - # I a in 1941 a . $1950 and . I # I I over 1959 # = :1941 Rebert B. Gress President 8 27,400 8 44,750 8 125,000 8 97,600 $ 24,407 8 33,565 # 9,180 C. A. Barber, Jr. Vice Pres. 18,000 $0,000 90,000 72,000 16,701 29,805 15,104 Carl B. Squier Vice Pres. 17,800 26,000 65,000 47,200 16,527 25,845 9,328 Hall be Hibbard Vice Pres. 17,500 26,250 65,000 47,500 16,268 25,845 9,579 R. A. Ven Boke Vice Pres. 14,000 25,000 65,000 51,000 13,191 26,045 12,654 Cyril Chapellet See. 15,000 25,000 65,000 52,000 12,297 25,845 18,548 Totals 107,700 177,000 475,000 567,300 99,389 166,750 57,341 Remarks: There are 2 additional afficers with salaries of $22,000 and $19,000 in 1941 and $7,800 and $6,300 respectively in 1989. 128 Regraded Unclassified MOORE DRY DOCK COMPANY # 1 $ I Salary after Federal a I Salary :Increase I insome taxes I - sin amount: I Changes Same of Executive . Title I 1939 - 1940 I 1941 100 salary: 1939 I 1941 streen - - I # tin 1941 I # $1930 and # I a # 10VE7 1989: I +1941 dos. 4. Moore Chm. of Board $ 40,000 $ 40,000 $ 40,000 8 - # 54,021 $ 20,235 $ (13,756) Net Levey Vice Presand See. 15,000 15,000 15,000 - 14,076 10,468 ( 3,611) A. 1. Viner Vice Pres. à Treas. 6,000 6,780 12,000 6,000 5,834 8,785 2,901 doe. A. Moore, Jr. Pres. à Gen. Mgr. 20,000 $0,000 20,000 . 18,411 12,940 ( 5,471) - I : Vice Pres. 20,000 20,000 20,000 - 18,411 12,960 (4.172) Total: 101,000 101,750 107,000 6,000 90,803 65,345 (25,459) Remarks: There are 19 additional officers with salary of $10,000 and over. 129 Regraded Unclassified NEW YORK SHIPBUILDING CORPORATION : # I . Salary after Federal : 1 Salary :Increase I issue taxe : & da amount a I Changes lass of Executive : Title $ 1959 # 1940 I 1941 of salary . 1989 # 1941 1 I a # in 1941 I a 11980 and : 1939 1 I use a. Lockhart, dr. Ch. of Brd. 8 32,181 $ 66,919 $ 75,600 $ 43,469 $ 28,072 $ 27,671 $ (401) do 7. Metten President 32,105 55,655 75,600 43,495 28,062 27,671 (851) 1. 5. Campbell Vice Pres. 19,582 59,791 54,000 54,418 18,068 23,715 1,000 L S. Pruitt Sec., G.C. 15,400 27,027 $0,500 21,100 14,428 10,156 4,907 L. Cardner Labor Coun. 18,000 26,529 36,000 18,000 16,701 18,975 Ritar is of Treasurer 10,707 26,520 $6,000 25,295 10,245 18,975 8,752 Total 127,925 240,448 315,700 105,775 115,552 136,142 20,500 Rearkst There are 17 additional officers with salaries of $10,000 and over for 1041, for which salaries for 1959 or 1960 are not available. 130 Regraded Unclassified NORTH AMERICAN AVIATION, INC # 8 = # Salary after Federal 8 8 Salary Increase & issues taxes Name of Executive # Title 8 # # sin amount # # :Changes # $ 1959 a 1940 # 1941 sef salary # 1969 $ 1941 I # # a sin 1941 - # $1900 and 8 8 a R lever 1980 $ $ $1941 J. 1. Kindelberger Pres. $ 188,110 $ 168,350 $ 155,250 $ (50,880) $ 99,655 8 $4,500 $ (65,086) J. L. Atweed V. Pres. 75,000 78,555 71,360 ( 5,880) 56,221 25,998 (20,255) of d Treasurer 24,600 25,425 26,450 3,850 22,195 16,357 ( 5,858) d. s. Smitheen Factory 26,700 28,975 32,500 $,800 25,450 17,815 ( 7,615) Mgr. 2. 1. Rice Chf. Bag. 24,600 26,075 32,500 7,900 22,195 17,816 ( 4,580) Total 559,010 325,358 500,050 (38,960) 225,697 113,565 (112,182) Remarks: Data are shown only for officers with salary of $25,000 and over for 1941. There are 15 additional efficers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $214,258. 131 Regraded Unclassified NORTHERN rune COMPANY I I 8 8 Salary after Totaral I I Salary I Increase - income taxes # I in momt Name of Precutive I Title I 1939 1940 # 1941 of salary # - Changes 8 I I 1939 # 1941 ribotwoom - I I is 1941 # I - I - I I # over 1939 11939 and # # 11941 J. 3. Hawley, Jr. President $ 49,000 $ 12,000 $172,000 $123,000 8 40,441 $ 38,265 $ (2,176) There is an additional visa president for 1940 and 1941 with a salary for 1940 ad:16:000 and with a salary of $43.000 for 1941 but no calary is reported for 1939. the has a salary of under $10,000 for 1941. 132 Regraded Unclassified PACKARD MOTOR CAR COMPANY # I - # Salary after Federal I I Salary Increase t income taxes Name of Executive I Title a a I du your - I schanges # # 1980 # 1940 # 1941 sof salary # 1989 e 1041 between I # # $ sin 1941 8 I $2000 and I # I I jover 1989 I I 1190 L c. Ibeyle Comptroller 6 14,481 8 13,428 $ 17,840 8 5,380 $ 13,619 $ 11,918 9 ( 1,701) J. L Marks V. Pree. 21,060 19,250 $1,000 10,080 19,292 17,504 1,908) 0. T. Christopher Y. Pres. 45,960 45,250 58,500 12,550 58,320 24,615 (18,705) Poster is x v. Pres. 56,500 35,000 42,000 4,352 22,962 12,068 (11,910) Hingh J. Forry Treas. 20,521 18,584 21,030 700 18,684 15,404 < 5,290) B. Tibbitts 1. Pres. 15,840 16,145 17,430 2,100 14,287 11 11,719 2,500) dima xi all Pres. 65,280 75,380 75,420 10,100 50,849 27,642 (25,207) 4. Measulay ch. of M. 45,200 45,340 45,340 00 37,059 21,750 (10,108) do a. Vinsont V. Pres. $4,250 31,250 45,670 9,420 29,705 81,208 ( 5,411 c. L. Paton Ch. Engr. 20,150 18,000 21,540 11,190 10,600 15,545 4,865) L. V. Slask Asst,nales 13,850 13,007 17,088 3,230 15,058 11,544 ( 1,512) Mgr. 0. H. Brodie Mgr.of Div. 6,970 9,084 16,250 7,298 8,645 11,128 2,479 N. L. Griswold Statistician 16,575 15,800 19,500 2,925 15,401 18,715 ( 2,748) I will i Mesh. Supt. 10,800 11,778 15,225 4,425 10,315 10,586 275 Total 370,765 362,928 442,641 71,878 321,585 230,156 (91,400) Bearks: Data are shown only for officers with salary of $15,000 and over for 1941. There arells additional officers with a salary of $10,000 and under $15,000 for 1941. The total of these salaries is $179,600 for 1941. 133 Regraded Unclassified REPUBLIC AVIATION CORPORATION a # $ I Salary after Federal I a Salary Increase I Income taxes 2 1 is email I $ a Changes Name of Executive 3 Title 1939 8 1940 1 1941 'of salary I 1939 I 1941 between I a I - 'in 1941 : $ I 1 11939 and I I lever 1939 I I '1941 V. Vallase Vellett President 8 25,875 $ 36,120 $ 37,280 $ 11,405 $ 23,202 $ 19.385 $( 3,817) A. Kartwele Vice Fres. 8,602 16,636 19,500 10,898 8,306 12,715 4,409 J..L.Me Class Vice Pres. 3,194 25,620 24,200 21,006 3,179 14.728 11,549 1. Davis See.-Treas. 4.958 12,620 13,000 6,042 4,880 9.365 4,485 Total 42,629 90,996 93.980 51,351 39.567 56,193 16,626 Remarks: There are 3 additional officers with salary of $10,000 and over for 1941, but salary for 1939 or 1940 is not reported. the total of the salaries for these 3 efficers is $56,700 for 1941. 134 Regraded Unclassified ROBINS DRT DOCK AND REPAIR COMPANY $ . . . Salary after Federal $ . Salary :Increase a insues taxes . E sin amount I sChanges Name of Executive . Title # 1939 $ 1940 . 1941 sef salary: 1939 # 1941 between I e . . da 1941 8 # $1930 and I # # . lover 1959, . :1941 John D. Reilly Chm. of Board 8 33,000 0 33,275 8 53,869 8 20,869 8 28,741 $ 23,489 6 (8,052) J. Herbert Todd Be title 25,010 25,208 32,535 7,525 22,519 17,020 (4,691) Francis J. Gilbride President 34,010 35,292 41,746 7,736 29,519 20,726 (8,795) Fred D. Realey, Sr. Vice President 15,427 18,654 21,967 6,540 14,452 15,811 ( 641) Joseph Hang, dr. Vice President 11,510 13,808 22,282 10,772 10,955 13,963 1,000 law B. Barns So title 12,000 12,000 23,300 11,300 11,398 14,571 2,973 Total 130,957 106,737 195,699 64,742 117,504 104,346 (13,210) lemrks: Data are shown for only those officers with salary of over $20,000 in 1941. There are 5 additional officers with total salary of $60,390. 135 Regraded Unclassified SAVAGE ARMS CORPORATION # I # Salary # 8 Salary after Federal I :Increase . income taxes lians of Executive I Title # # 8 sin amount I I :Change w $ I 1959 = 1940 # 1941 10f salary I 1959 I 1941 the 1990 # I E I sin 1941 8 I sand 1941 I E I . LOTER 1989 I 1 4 W. L. Wright Ch. of Brd. $ 26,891 $ 34,232 $ 33,740 $ 6,849 $ 24,005 $ 18,251 $ ( 5,754) 1. 1. Hickey Pres. 13,416 30,575 46,780 35,365 12,668 22,562 9,894 L A. MacDonald 1. Pres. 11,062 24,248 39,320 27,438 11,291 20,087 8,746 Total 52,188 88,855 121,840 69,652 47,954 60,850 12,856 Remarks: There is one general sanager with a salary and bonus of $35,000 in 1941 and $18,890 in 1940, but with no salary shown for 1959. 136 Regraded Unclassified SPIRRY GYROSCOPE COMPANY, INCORPORATED $ # $ - Increase # Salary after Federal # Salary 8 $ in amount $ income taxe liene of Insultive $ I gitle $ $ E $ of salary # . Changes $ $ $ 2 # 1940 1941 in 1941 $ . 1939 9 between . 1939 5 1941 $ $ over 1939 $ $ 1939 and $ I I $ $ 1 11 1941 Thomas A. Mergan a. of Ind. $ 34,421 $ 37,484 8 62,500 $ 28,079 $ 29,835 e 25,395 e (4,440) Reginald E. Gillmer President 43,107 50,000 75,000 31,893 36,273 27,575 (8,698) Prestes R. Bussett Vice Pres. 29,302 33,500 37,500 6,198 25,894 19,455 (6,439) Robert 1. Les Visa Pres. 18,500 22,000 23,500 5,000 17,136 14,455 (2,681) Nerbert H. Thompson Secretary 11,900 15,300 17,000 5,100 11,308 11,500 192 Total 137,230 158,284 215,500 78,270 120,446 98,380 (22,066) lasts: 5 additional officers reselved salary of $10,000 and over for 1941, but salaries for 1939 and 1940 not reported. The total of the salaries of these 5 additional officers for 1941 is 887,367. 137 Regraded Unclassified STANDARD OIL COMPANY AND 31 IDIARIES # # 'Increase $ Salary after Federal # $ Salary 'in mom't $ Income terms June of Insultive . Title E of salary I $ = Changes . - $ # 'ts 1941 $ 1939 $ 1941 1 between $ $ 1939 I 1940 # 1941 # 'over 1939 $ $ $ 1939 and I $ $ $ $ $ 1 I 1961 be - given $ 40,000 $ 40,000 $ 40,000 4b - s 34,021 $ 20,235 $ (13,786) 125,000 125,000 225,000 - 77,206 33,565 (43,541) 80,000 80,000 80,000 - 58,731 28,375 (30,356) 90,000 90,000 90,000 - 63,331 29,805 (33,526) 50,000 55,000 55,800 5,000 41,131 23,915 (17,216) 75,000 75,000 75,000 - 56,221 27,975 (26,646) 55,000 49,208 45,000 (10,000) 44,481 21,695 (22,846) 42,500 47,500 44,531 2,031 35,836 21,504 (16,332) 35,000 35,000 35,000 - 30,271 18,655 (11,616) 45,000 45,000 45,000 - 37,636 21,605 (16,001) 40,000 45,000 45,000 5,000 34,021 21,635 (12,386) 50,000 50,000 50,000 - 41,131 22,855 (18,276) 45,800 45,000 50,000 4,900 37,700 22,855 (14,853) 60,000 54,200 20,000 (10,000) 47,671 22,855 (24,826) 42,500 47,500 50,000 7,500 35,836 22,055 (12,981) 90,000 90,000 90,000 - 63,331 29,005 (33,526) 33,000 38,000 45,000 12,000 28,741 21,635 (7,106) Total 998,100 1,011,416 1,014,531 16,431 767,204 411,394 (355,820) Benarkes Date are shown for only those officers with salary of $40,000 and over in 1941. There are 154 additional officers with salaries of $10,000 and unler $40,000 with a total salary of $2,404,311 in 1941. 138 Regraded Unclassified STUDEBAKER CORPORATION I 1 I $ 2 Salary Salary after Federal I Increase $ income taxes Name of Executive # Title I # # :in amount a I Changes # - 1939 a 1940 = 1941 :0f salary # 1939 # 1941 :betwoom I a $ I sin 1941 I E 11989 and $ 2 4 4 lover 1950 I - :1941 L 1. Cole v. Pres. 6 25,828 $ 24,000 $ 34,000 $ 8,172 $ 23,165 $ 18,335 $ ( 4,830) I. 3. Elliott V. Pres. 22,828 24,000 $4,000 11,172 20,762 18,335 ( 2,427) Bart Fouler Gen. Supt. 18,697 18,000 25,000 6,303 17,503 15,040 ( 2,265) P. 0. Hoffeas Pres. 50,000 60,000 81,000 31,000 41,131 28,535 (12,596) W.S.James Chief Ing. 20,262 18,000 25,000 4,738 18,684 15,040 ( 5,594) Goo, D. Kalle Y. Pres. 21,740 24,000 34,000 12,200 19,000 18,335 < 1,550) L Mgr.of Div. 20,262 18,000 25,000 4,738 18,634 15,040 ( 3,594) P. 0. Peterson Dir. of Pur, 20,262 18,000 25,000 4,758 18,654 15,040 ( 3,594) N. he Vail V. Pres. 27,828 24,000 34,000 6,172 24,745 18,335 ( 6,410) 11. S. Vance Chr.of Brd. 50,000 60,000 81,000 31,000 41,251 23,555 (12,598) C. I. Whittaker Pres., Sub. 25,828 24,000 54,000 8,172 25,165 18,556 < 4,830) Total 503,535 312,000 452,000 128,465 267,189 206,906 (58,264) Bearker Date are shown for only those officers with salary of $25,000 and over in 1941. There are 18 additional officers with salaries of $10,000 under $25,000 with total salary of $231,815 in 1941. 139 Regraded Unclassified SUB OIL COMPANY # = # . Salary after Federal # . . Increase . income taxes # . Salary - in amount # . Changes Sure of Executive I Title = 1930 1 1940 1 1941 I of salary I 1939 - 1941 streem # # I I a in 1941 4. & ,1950 and # 5 # I a over 1939 $ 5. 11941 d. Howard Per ires. 3 60,000 0 60,000 $ 60,000 $ - @ 47,671 $ 14,971 8 (22,700) J. I. Per Vice Pres. 60,000 60,000 60,000 - 67,071 26,971 (22.700) J. Edgar Per Vice Pree. 60,000 60,000 80,400 20,400 47,071 28,495 (19,176) Arthur B. Pew, Jr. Vice Pres. 35,000 35,000 46,900 11,900 30,271 22,167 (8,104) Samuel 1. Bokert Vice Pres. 68,300 68,300 68,300 - 62,582 28,495 (26,087) Frank Cross See. a Treas. 20,000 20,000 26,800 6,800 16,411 15,798 (2,613) 1. 8. Reitsel Ass't. to Pres. 18,000 21,600 28,944 10,244 16,701 16,589 (112) Walter C. Per Gen'l Sales Mgr. 21,000 21,000 39,450 18,450 19,251 20,135 084 P. 1. Harrison Reg. Sales Mgr. 17,500 20,000 26,800 9,300 16,265 15,796 (468) J. C. Welliver Public Relations 25,000 25,000 25,000 - 22,511 18,096 (7,415) C. N. Theyer Chief Engineer 15,000 10,000 28,644 13,644 14,076 16,483 2,407 1. D. Masca Refinery Mgr. 20,000 21,600 25,544 8,944 18,411 16,591 (1,820) John 0. In Management Comm. 16,000 20,000 26,800 11,800 14,076 15,796 1,722 Robert N. Pask General Mgr. 18,000 20,000 26,000 11,800 14,076 15,796 1,722 Thomas L. Footer Chief Counsel 25,000 25,000 25,000 - 22,511 15,096 (7,415) Totals 474,800 495,500 598,768 123,982 402,168 200,281 (111,875) There are 27 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $413,909. Data are shown only for officers with salary of $25,000 and over for 1941. 140 Regraded Unclassified UNITED ATRORAFT CORPORATION I $ I I Salary after Federal I 4 Salary I Increase I Issues taxes a I I is amount 1 2 : Changes Late of Insertive # Title I I # 10f salary I 1939 à 1941 # I 1939 I 1940 # 1941 :in 1941 = 3 11939 and I E I # lever 1939 I I :1941 P. 1. Rentechler Ch. of Board $ 24,050 $ 47.563 $ 73.550 $ 49,500 $ 21,751 $ 27.343 $ 5,592 of Vileo of President 48,490 51,640 73,920 25,430 40,089 27,402 (12,687) require Decretary 42,460 41,233 58,740 16,280 35.808 24,205 (11,145) Regures's Valah Vice Pres. 40,750 39.123 56,450 15,700 34,576 24,205 (10,372) 7. 1. burahan 042. Acct. 12,250 14,167 19,042 6,792 11,624 12,495 871 G. L. deals transurer 18,125 21,500 22,500 4.375 26,810 14,035 ( 2,775) Total 186,125 215,246 304,202 118.077 160,658 130,143 (30,515) temarks: There Le ⑉ additional officer with ealary of over $10,000 for 1941, but salary 10 not reported for 1939 and 1940. 141 Regraded Unclassified WESTERN CARTRIDGE JOMPANY $ : 'Increase 1 Salary after Federal $ $ Salary 'in amount $ incose taxes Name of Executive 1 Title = of salary $ $ $ Changes I = F $ in 1941 = 1940 1939 $ 1941 1 between = $ 1939 , $ 1941 'over $ 1939 = $ I 1939 and 1 $ E 1 $ , $ I 1941 J. 11. Olin Vise Pres. $ 25,000 $ 25,000 $ 125,000 $ 100,000 $ 22,511 $ 33,565 $ 11,054 a. T. Olin See. Treas. 5,000 15,000 100,000 95,000 4,920 $2,035 26,115 of : Aut.Treas. 15,000 30,000 50,000 35,000 14,076 22,855 8,779 1. Pugalay Asst.Seay. 14,500 27,000 36,000 21,500 13,636 18,975 5,339 L. N. Peterson Anst.Treas. 9,000 15,000 19,000 10,000 8,671 12,475 3,804 Asst.Secy. 9,000 16,000 24,000 15,000 8,671 14,650 5,979 2. Canteel 1. Asst.Secy. 8,000 14,000 16,000 8,000 7,752 10,990 3,238 Total 85,500 142,000 370,000 284,500 80,237 144,545 64,308 w Estimated by corporation. Remarks: The malary of F. 1. Clin, President, is cuitted, as only the 1941 salary of $150,000 is available (1939 and 1940 salaries are outsted). 142 Regraded Unclassified WESTERN PIPE AND STEEL COMPANY . # 1 I Salary after Federal # # Salary I Increase I income taxes . - $ in amount: 8 sChanges Jame of Executive # Title # 1939 - 1940 # 1941 I of salary: 1939 . 1941 between . # = I I in 1941 I $ 1939 and a I a - 1 over 1939: a ,1941 H. L. Tallerday Pres. s 27,000 $ 27,000 a 40,4500 8 13,500 . 24,091 $ 16,336 $ (7,758) W. 0. Aldenbagen Vice-Pres.Sm&Tr. $ 16,600 18,500 24,500 18,260 16,398 14,942 $ (7,484) R. D. Mageman Vice-Pres. 18,000 18,000 27,000 9,000 16,701 15,820 ( 881) L B. Slater Vice-Pres. 18,000 18,000 27,000 9,000 16,701 15,820 ( 881) Total 79,600 79,500 119,250 39,750 72,889 62,917 (9,972) Remarks: 2 additional assistant vise-prosidents have a salary of $10,000 and over for 1941, but no salary is reported for these for 1959 and 1960. The total salary received by these 2 additional officers for 1961 is $31,500. 143 Regraded Unclassified WESTINGPOUSE ELECTRIC AND MANUFACTURING COMPANY # # 'Increase 1 Salary after Federal I $ Salary E in amount E Issue taxas lass of Insective # Title $ $ of salary $ $ - Changes # $ $ $ $ 1941 in 1941 1939 $ 1941 $ between # # 1939 $ 1940 # # over 1939 $ = I 1939 est I $ $ $ $ . : . 19/1 4. W. Rebertern on. of 2nd. $ 137,431 # 164,625 . 180,645 $ 43,214 $ 81,830 $ 39,129 $ (42,701) 7. 4. Barrisk Visa . 51,356 56,139 54,531 3,175 12,067 23,821 (18,246) in I jus, President 97,772 118,443 230,783 33,011 66,617 3263244 (32,473) Malph Hally Visa Pres. 47,788 54,800 59,133 11,345 39,604 24,742 (14,862) b. 7. Visa Pros. 45,808 54,438 57,322 11,513 38,218 24,379 (13,839) Incose Skybold V.P.A Comp. 46,908 55,638 58,621 11,713 38,998 24,639 (14,359) Marold Smith Vice Pres. 42,724 51,475 55,133 12,409 35,997 23,942 (12,055) Total 469,787 555,550 596,167 126,380 343,331 194,796 (148,535) Date are above only for officers with salary of $50,000 and over for 1941. There are 13 additional efficers with salary of $10,000 and under $50,000. the total of these salaries is $358,312. 144 Regraded Unclassified WESTINGHOUSE ELECTRIC ELEVATOR COMPANY # # I a Salary after Federal # # Salary Increase - income taxes . # sin amount If # sChanges Hame of Executive # Title # 1939 # 1940 # 1941 of salary I 1939 # 1941 between # # # 2 sin 1941 a 1 ,1939 and # # . # lover 1939 1 # .1941 Frank c. Reed President # 33,005 $ 38,106 $ $4,723 8 1,718 $ 28,745 $ 18,666 $ (10,179) Bemarks: There are no additional officers with salary of $10,000 and over for 1941. 145 Regraded Unclassified 146 tumber and compensation of executives paid $10,000 or more, for selected corporations, 1939-1941 I Executives paid $10,000 or more = : : number of executives 1 Total compensation paid (3000) Same of company I : : 2 : 1939 I 1940 : 1941 1 1939 - 1940 : 1941 : : : - Alabama Dry Dock 4 + 4. & 92 - 154 265 American Car & Foundry Do. 20 22 51 512 560 538 American Engineering Co. 1 2 2 11 28 32 american Locomotive Co. 11 11 12 264 319 588 American Woolso Co. 18 21 26 450 465 748 Aviation Corporation 1 2 5 10 67 134 Baldwin Locomotive Co. 15 20 54 290 595 656 Bath Iron Works 5 3 3 36 46 49 Beech Aircraft Corp. 1 1 1 10 12 19 Hell Aircraft Corp. 2 4. 9 35 75 069 Fendix Aviation Corp. 5 5 5 187 122 196 endix Aviation Ltd. 1 1 3. 12 14 18 Bethlehem Steel Corp. 35 36 57 1,655 2,278 2,562 Boeing Aircraft Co. 3 6 6 42 84 90 Carter Carburetor Co. 15 17 24 248 325 476 Chrysler Corporation 92 99 106 2,190 2,282 2,307 Consolidated Aircraft Corp. 5 7 8 80 145 245 Consolidated Steel Corp., Ltd, 2 2 - 30 37 71 Continental Motors Corp. 2 4 7 50 53 152 Cramp Shipbuilding Co. - 6 6 - 21 129 Diamond T. Motor Car Co. 18 15 25 252 242 850 Douglas Aircraft Co., Inc. 9 10 21 518 264 452 E. I. du Pont de Nemours & Do. 38 39 39 5,835 5,759 2,654 Electric Boat Co. 4 4 4 101 105 121 Ford Motor Company 96 96 120 2,754 2,890 3,490 General Electric Co. 187 274 310 3,275 4,421 5,225 General Wachinery Corp. 7 8 11 169 171 280 General Motors Corp. - 80 94 107 2,285 2,440 2,662 Glann L. Martin Co. 4 4 5 112 114 168 Aircraft Corp. 5 7 2/ 125 173 Culf Shipbuilding Co. 5 61 Johnstown Water Co. I I 1 13 13 15 Lockheed Aircraft Corp. 8 7 8 108 188 516 Los Angeles Shipbuilding & 1 3 10 50 Dry Dock Corp. Moore Dry Dock Co. 4 4 5 95 95 107 New York Shipbuilding Co. 7 25 25 128 382 605 Seport News Shipbuilding & 4 5 10 120 165 551 Dry Dock Corp. North American Aviation, Inc. 1, 3 5 5 286 270 235 Nortbern Pump Co. 1 2 2 49 56 215 Packard Motor Car Co. 22 20 30 477 643 643 57 91 147 topablic Aviation Corp. 2 4 7 Rubins Dry Dock & Repair Co. 8 10 8 161 180 209 Sivage Arms Corp. 4. 5 5 98 142 252 Mattle Tacoma Shipbuilding Co. 2 1 4 18 66 6 10 150 174 506 Sperry Cyroscope, Inc. 6 standard oil Co. of New Jersey 150 185 181 3,071 5,564 5,486 The Studebaker Corp. 18 19 25 422 422 664 -lan 011 Do. of 42 42 Bis 841 1,015 United Aircraft Corp. 11 10 7 378 281 524 United States Steel Corp. 298 323 368 2/ 2/ Western Cartridge Co. 7 7 8 B5 142 520 Restern Pipe & Steel Co. 4 4 6 80 80 151 Westinghouse Electric Elevator Co. 1 1 1 33 38 35 Mestinghouse Electric & VIS. Co. 18 17 20 738 798 954 Treasury Department, Division of Tax Research April 12, 1942 Part-year data involved. Not available Exclusive of stock bones. Source, Data supplied by Collectors of Internal Revenue- USH-py Regraded Unclassified 147 PRODUCTEARY Income before and after income and profite law for solected companies, 1939, 1940 and 1941 [Ascunts In thousands) e Net income after income and profits taxes 1/ Net income before income . 1 1941 and profite taxes 1/ Seal of company 1959 1940 - Present - Proposed 1 # 1959 1940 . 1941 rates rates 577 054 aso c, 1 Alabema Dry Dock + Shipoudlding Co. $ 457 # 779 = 1,407 (655) 4,725 (2,405) (655) 3,574 2 American Car and Founday Co. 2, (2,463) 656 1,184 15 450 496 274 5 American Engineering Co. 286 2,650 (765) 1,768 6,250 4,440 - imerican Locomotive Co. (768) 2,259 5 American Noolen Co. 1,585 5,637 21,51 2,158 2,764 10,000 6,247 (68) 12 1,144 (68) 10 942 c e Avistion Corp. 7 Baldwin Incomotive Works 552 4,966 519 1,019 3,812 2,918 1,057 71 7,554 57 1,727 4,057 3,256 8 Bath Iron Works 2,501 126 1,007 (91) 105 512 9 Beech Aircraft Corp. (91) 10 11,150 9 452 3,368 1,451 10 Bell Aircraft Corp. 641 56,492 968 6,316 5. 17,614 1/ 11 Bendix Aviation Corp. 1,087 9,975 18 Bethlehen Steel Corp. 33,954 64,912 145,225 28,883 47,444 62,170 37,958 15 Boeing Aircraft Co. (1,091) (1,084) (1,601) (1,664) 44,597 68,453 64,168 57,308 48,420 38,210 24,461 14 Chryaler Corp. 1,801 1,785 27,288 1,401 1,318 6,188 5,386 15 Consolidated Aircraft Corp. 16 Consolidated Steel Corp. (Callf.) 189 161 1,379 2 158 125 995 17 Consolidated Steel Corp. (Texas) (21)6 16 g. (21)6/ 10 Continental Motors Corp. ($40) 665 6,596 (240) 555 299 195 453 1º Cresp Shipbuilding Co. 3,819 20,028 8,822 14,001 20 Curties Wright Corp. a Dismond : Motor Car Co. 361 SLE 4,106 299 240 1,419 701 22 Douglas Aircraft Co., Inc. 4,586 14,059 40,127 3,760 11,466 19,408 25 E. I. du Pont. da Nemours & Co. 110,215 145,010 210,000 96,876 105,005 109,000 76,061 3,035 3,024 4,112 2,951 2,118 2,852 24 Dectric Boack Co. 25 Ford Motor Co. 22,225 26,758 16,161 19,267 20,941 11,276 7,494 56,490 102,316 47,745 66,075 26 General Electric Co. 2? General Machinery Corp. B66 5,925 711 960 2,004 085 1,585 142,369 266,851 547,250 517,740 230,177 233,566 140,505 28 General Motors Corp. 29 Glann L. Martin Co. 5,745 6,512 12,400 4,644 5,516 5,725 5,265 30 Ordersin Aircraft Sugineering Co. 1,148 2,435 2,192 920 1,422 1,115 661 (2) 189 (2) 181 66 51 Oulf Shipbuilding Corp. 54 35 52 Houston Shipbuilding Corp. (14) 511 1,007 (14) 588 500 290 55 Ingalls Shipteilding Corp. 5,987 5,149 29,941 3,115 5,444 9,726 4,555 54 Lockheed Aircraft Corp. 174 175 778 142 126 557 551 SE Les Angeles Shipbuilding & Dry Dock Co. (?) 625 2,701 (7) 469 1,281 684 36 Moors Dry Dock Co. 5,085 10,274 15,495 5,225 7,929 6,864 37 Newport Hewe Shipbuilding & Dry Dock Do. 2,028 4,249 3,600 2,226 2,405 1,945 1,162 se New York Shipbuilding Corp. 39 North American Aviation, Inc. 9,899 15,571 7,457 7,09£ 5,799 3,437 1,048 544 376 1,750 279 222 SQ 40 Northern Pump Co. 1,566 1,142 4,285 1,144 904 2,956 1,220 41 Fackard Motor Car Co. (893) 1,194 1,241 (695) 1,042 all 532 42 Republic Aviation Corp. 1,825 on 58 1,182 5,504 $ B58 45 Robine Dry Dock and Impair Co. 464 2,037 15,450 881 1,258 4,001 2,004 44 Savage Arms Corp. 596 BOG 301 45 Sexttle Takuna Shipbeilding Corp. 1,008 4,601 12,918 25,752 5,681 6,925 8,965 4,420 46 Sperry Gyroscope Co., Inc. 126,968 202,145 117,075 181,8$8 166,118 47 Standard 011 Co. (II. de) 2,947 2,354 5,127 2,445 1,789 2,225 1,734 48 Studebaker Corp. 4,618 4,187 4,399 BA 60 Sun oil Do. 4,262 11,795 $5,651 83,925 9,919 17,654 28,067 15,498 50 United Aircraft Corp. 140,017 70,824 76,529 65,547 234 ,071 65,595 59,740 51 United States Steel Corp. 6,442 12,196 5,125 6,679 St Bestern Cartridge Co₂ 35 576 1,89€ 28 278 625 55 Esatoro Pipe and Steel Co. (calife) 16,453 27,165 68,571 13,517 18,051 27,771 15,500 54 Bertinghouse Klootric & Mrg. Co. 951 845 BBT 795 541 555 549 55 Westinghouse Electric Devetor Co., April 22, 1942 Treasury Department, Division of Tax Research Sources Date supplied by Collectors of Internal - ( ) Indicates loss. Mot available. Loss of loss than $500. 1980 Income tax reles applicable. Net issue as reported not - . and superable rada between companies. Maril year returns. 9 anothe. Changes to Cleok) year Insta Deptember 30, 1940. 11 moths, S/ @ smill, Changed % fieml 1 ingart n, 1960- 7 metts, Insurpreted January 13, 1940. 1/ 10 method 0/ 9 months. e morths, Changed to fiscal per baste - so, 1940. Regraded Unclassified Lalculated tax liability under present (1941) rates and under proposed 1942 rates, on the basis of 1941 Income, for selected companies 148 (Asounts in thousands) 1941 net . Excess profite credit I Excess profits tax I Normal and surtex I Total tax - Effective - I income, before inj I (Fain of E # 1 1 1 I 1 # Name of company Amount I , tax under come and unber E Method I 1941 I Proposed I 1941 , Proposed I 1941 * Proposed . profite I Percentage* proposed liusibed I E , rates 3 rates : rates I rates # rates - rates : I indrease tax taxes 1 - : I 7 - 1 American Engineering Co. 1,156 8 358 Income $ 420 $ 556 $ 219 $ 52: H 658 $ B&O 34.72 75.78 x 2 American Locomotive Co. 9,650 5,250 Inv. Cap. 1,531 1,925 1,969 3,277 5,500 5,202 48.63 55.91 2. 3 American Soolen Co. 21,516 11,269 Inv. Cap. 6,099 7,635 4,779 7,654 10,878 15,269 40.57 70,96 & 4 Baldwin Locomotive Co. 4,966 7,446 Inv. Cap. . - 1,154 2,048 1,154 2,048 77.42 0.8 4 5 Bath Iron Works 7,354 2,299 Income 258 509 2,158 5,790 2,398 4,099 71.05 55,74 5 6 Bell Aircraft Corp. 11,180 849 Inv. Cap. 6,194 7,754 1,569 1,925 7,763 9,679 24.69 06.98 6 7 Bethleben Steel Corp. 145,225 45,312 Inv. Cap, 55,565 59,458 24,490 35,804 80,058 105,272 51,50 78.50 7 B Chrysler Corp. 64,183 46,255 Income 9,596 12,006 16,369 27,716 25,965 59,722 52,99 61.09 B. 9 Consolidated Aircraft Corp. 27,288 - 15,400 19,262 5,700 4,441 19,100 25,702 £4.10 86,86 9 10 Cramp Shipbuilding Co. 453 676 Inv. Cap. - - 154 238 154 258 77,42 54,90 10 11 Diamond I Motor Car Co. 4,106 538 Income 2,068 2,596 619 808 2,687 3,404 26,69 82,91 11 12 E.T. duPont de Nemours & Co, 210,000 - 68,400 85,512 52,600 48,427 101,000 133,959 $2,51 65.78 12 15 Ford Motor Co. 16,161 42,331 Inv. Cap. - - 4,885 8,667 4,885 6,687 77.42 55,65 18 14 General Machinery Corp. 5,925 711 Income 5,054 3,829 B65 1,109 5,919 4,958 26.99 85.56 14 15 General Motors Corp. 517,748 220,087 Income 175,814 219,779 101,531 155,600 277,145 375,579 55.44 72,50 18 16 (llenn L. Martin Co. 12,409 5,468 Income 4,115 5,155 2,571 5,989 6,686 9,144 56.77 75,69 16 17 Gruman Aircraft Engineering Corp. 2,192 1,112 Income 587 745 492 786 1,079 1,531 41,90 80,58 17 18 Oulf Shipbuilding Corp. 189 216 Inv. Cap. - - 58 105 58 105 77.42 54.45 10 19 Ingalls Shipbuilding Corp. 1,007 - 282 564 224 553 507 717 41,57 71,24 19 20 Lockheed Aircraft Corp. 29,941 5,449 Income 15,646 19,819 4,569 5,567 20,216 25,386 25.58 84.79 to 21 Los Angeles Shipbuilding & Dry Dock Corp. 778 1,118 Inv. Cap. - - 241 427 241 427 77.42 54,94 21 R$ Moore Dry Dock Co. 2,701 539 Inv. Cap. 1,068 1,347 551 470 1,419 1,817 27.98 67.26 22 25 New York Shipbuilding Co. 5,800 v- - 995 1,255 860 1,383 1,855 2,658 42.21 69.42 25 24 North American Aviation, Inc. 5 15,575 8,011 Income 5,192 6,502 5,582 5,654 8,776 12,136 38,32 77,95 24 25 Packard Motor Car Co. 4,289 4,100 Inv. Cap, - - 1,355 2,369 1,355 2,369 77.42 55,22 25 26 Republic Aviation Corp. 1,241 695 IDV. Cap. 324 415 306 492 650 909 44,21 73,22 26 27 Robbins Dry Dock & Repair Co. 5,504 815 Inv. Cap. 2,655 5,328 826 1,095 5,479 4,423 27.11 85.80 27 28 Savage Arns Corp, 15,456 801 Inv. Cap. 6,736 10,931 2,079 2,461 10,615 13,412 24,02 86,89 28 29 Sperry Qyroscope, Ino. 25,752 4,521 Income 12,781 15,968 4,006 5,544 16,787 21,332 27.07 82,84 29 50 Standard 011 Co. of New Jersey 202,143 70,282 Inv. Cap. - - 20,305 56,025 20,505 36,025 77.42 17.82 50 51 Studebaker Corp. 5,128 2,044 Inv. Cap. 1,902 2,389 999 1,505 2,902 5,894 54,22 75.94 51 32 Sun oil Co. 11,497 12,676 Inv. Cap. - - 2,350 4,154 2,350 4,134 77.42 35,95 52 35 United Aircraft Corp. 83,925 11,453 Income 45,359 54,185 12,520 16,247 55,858 70,452 26.09 85.92 55 34 United States Steel Corp. 234,871 222,128 Inv. Cap. - - 87,954 156,047 87,954 156,047 77.42 65,44 54 55 Western Pipe & Steel Co. 1,592 501 Inv. Cap. 681 908 280 371 961 1,280 33.19 80.59 35 36 Westinghouse Elec, Elev Co. 887 850 Income 84 111 249 426 355 538 61,69 77.50 36 57 Westinghouse Klec,4 USG. Co₂ 68,571 13,800 Income 29,000 36,262 11,800 16,942 40,800 53,203 $0.40 60.59 Treasury Department, Division of Tax Research April 22, 1942 Source: 1941 income data supplied by Collectors of Internal Revenue. Including credit carry-over. For 11 months For 9 nonths. Not available Inclassified 149 April 22, 1942 MEMORANDUM FOR THE SECRETARY Two conspicuous examples of recent increases in compensation reported by corporations engaged on government contracts are the Western Cartridge Co., East Alton, Illinois, and the Diamond T Motor Car Co., Chicago, Illinois. Western Cartridge Co. The amount paid eight executives increased from $85,000 in 1939 to $142,000 in 1940 and $520,000 in 1941. The president of the company, who drew no salary in 1939 and 1940, received $150,000 in 1941. The vice-president's compensation increased from $25,000 in 1939 and 1940 to $125,000 in 1941. The secretary- treasurer received $5,000 in 1939, $15,000 in 1940, and $100,000 in 1941. These three officers all have the surname "Olin." The salaries of the five other executives also increased, the aggregate rising from $55,000 in 1939 to $145,000 in 1941. The individual increases ranged from 100 percent to 233 percent. The effects of the tax rates in reducing the largest of the increases are shown in the following table. : : Remaining after taxes : Salary : (approximate) Salary : 1941 : : 1941 : 1939 : Estimated : 1939 : proposed : Increase : : : rates : 0 $ 150,000 o $ 36,065 $ 36,065 $ 25,000 125,000 $ 22,511 33,565 11,054 5,000 100,000 4,920 31,035 26,115 15,000 30,000 13,636 18,975 5,339 In computing the taxes it was assumed that each executive was married with no dependents and had no other income and no deductions. Regraded Unclassified 150 - 2 - Diamond T Motor Car Co. The amounts paid officers (receiving $10,000 or more) declined from $252,000 in 1939 to $242,000 in 1940 and increased to $830,000 in 1941. The number of officers on the list increased from 13 in 1939 and 15 in 1940 to 25 in 1941. The officers appearing on the list for the first time in 1941 include two Washington representatives with compensation of $74,000 and $91,000. A third Washington representative received $11,000 in 1940 and $103,000 in 1941. In 1941 the three Washington representatives were paid a total of $268,000. Practically all officers received higher compen- sation in 1941 than in either 1939 or 1940. The compensation paid the top five officers increased from $130,000 in 1939 and $127,000 in 1940 to $271,000 in 1941. These include three vice-presidents each of whose compensation increased from $24,000 to $59,000. The fourth vice-president's compensation increased from $14,000 to $34,000. The compensation of the four vice-presidente includes bonuses on a basis established in 1925. The effect of the tax rates on some of the con- spicuous salary increases are as follows. Computations could not be made for salaries of the Washington representatives as no report was made on the salaries, if any, paid them in 1939. : : Remaining after taxes : : (approximate) Salary : Salary : : 1941 : 1939 : 1941 : 1939 : proposed : Increase : : : rates : $ 45,000 $ 60,000 $ 37,636 $ 24,915 ($ 12,721) 23,735 59,152 21,496 24,745 3,249 13,186 33,973 12,463 18,326 5,863 Regraded Unclassified 151 - 3 - Ten salaries combined which increased from $220,647 to $395,613 showed a decrease after taxes (1941 at proposed rates) of $7,819 from $197,306 to $189,387. In computing the taxes it was assumed that each executive was married with no dependents and had no other income and no deductions. Regraded Unclassified 4-227-152 COMPENSATION OF EXECUTIVES Explanatory statement in respect to the attached tabulations A detailed tabulation is attached for each of 44 selected corpo- rations for which "Compensation of Exccutives" data are available. Each tabulation shows by company, the name, title, and amount of salary for 1939, 1940, and 1941, for executives who received $10,000 or over for 1941. Salary includes directors' fees, bonuses, etc. In those instances where the large number of executives makes a complete tabulation impractical, data are shown only for those with larger amounts of compensation. The coverage of each tabulation is indicated under "Remarks." The salary after Federal income taxes represents the compensation minus Federal income tax computed as follows: (1) Not income assumed to equal amount of salary, (2) Personal exemption of a married person allowed - $2,500 for 1939 and $1,500 for 1941, (3) Maximum earned income credit allowed for 1939. No earned income credit allowed for 1941, and (4) Normal tax and surtax rates as provided by the Internal Revenue Code applicable to the year 1939 applied to 1939. Normal tax and surtax rates as proposed by the Secretary on March 3, 1942 applied to 1941. The summary tabulation shows identical data in aggregate for each of the 44 corporations. SUMMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 : : #: Salaries after Federal 1 Salaries # :Increase a income taxes : Number Name of company : : : tin amount a # change tof c- = 1939 = 1940 $ 1941 10f salaries: 1959 = 1941 :between recutives = : : sin 1941 : : Proposed :1939 and sincluded : = = gover 1939 : : Rates :1941 I Alabama Dry Dock and Ship- building Co. $ 92,525 $ 153,571 $ 265,321 $ 172,996 $ 83,188 $ 103,695 $ 20,507 4 American Car and Foundry Co. 173,088 184,338 114,075 (59,015) 146,398 70,602 -(75,796) 5 American Engineering Co. 10,696 15,383 17,573 6,877 10,219 11,790 1,571 1 American Locomotive Co. Not available American Woolen Co.,Inc. 339,225 343,583 524,250 185,025 295,871 239,250 -(54,621) 12 Avistion Corporation Not available Baldwin Locomotive Works 114,545 175,200 192,747 78,202 103,057 96,631 (6,426) 5 Bath Iron Works Corp. 25,800 34,280 37,360 11,560 24,313 25,320 1,007 2 Beech Aircraft Corp. 10,032 12,500 19,231 9,199 9,614 12,586 2,972 1 Bell Aircraft Corporation 35,000 49,210 124,167 89,167 32,096 49,093 16,997 2 Bendix Aviation Corp. 162,250 122,625 196,200 33,950 140,536 97,871 (42,665) 5 Bendix Aviation Ltd. 12,000 10,750 16,000 6,000 11,398 12,995 597 1 Bethlehem Steel Corp. & Subsidiary companies 1,173,283 1,731,294 1,934,458 761,175 794,488 508,116 - (292,375) 16 Boeing Aircraft Co. 58,864 83,855 90,135 31,271 55,811 62,109 6,298 6 Chrysker Corp. 793,500 855,034 891,333 97,853 616,846 354,044 (262,800) 14 Consolidated Aircraft Corp. 80,000 122,161 184,567 104,567 74,657 93,569 18,912 5 Consolidated Steel Corp.,Ltd. (Calif.) 40,400 33,471 66,000 25,600 38,372 44,000 5,628 4 Consolidated Steel (Texas) Not available Continental Motors Corp. 30,000 29,604 52,903 22,903 28,099 29,273 1,174 2 Cramp Shipbuilding (Wm. Cramp and Sons Ship and Engine Building Co. Not available 153 Regraded Unclassi SUMMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL VINCOME TAXES FOR 1939 AND 1941 (CONTINUED) I I = Salaries after Federal = I Salaries :Increase : income taxes :Number Name of company : sin amount : : :Change :of ex- = 1959 : 1940 t 1941 sof salaries: 1939 I 1941 :between recutives t $ - sin 1941 = : Proposed :1939 and :included I a = zover 1939 2 = Rates :1941 : Curtis Wright Not available Diamond-T Motor Car Co. $ 220,847 $ 188,750 $ 395,613 $ 174,966 $ 197,306 $ 189,487 $ (7,819) 10 Douglas Aircraft, Inc. 166,715 161,646 253,291 86,576 140,255 106,976 (33,279) 5 E.I. duPont do Nemours and Co. 2,019,109 2,174,679 1,446,761 (572,348)1, 117,459 596,931 (720,528) 12 Electric Boat Co. 101,000 105,083 121,000 20,000 89,799 66,290 (23,509) 4 Ford Motor Co. 1,228,000 1,299,101 1,466,550 238,550 878,780 511,156 (567,625) 20 General Electric Co. Not available General Machinery Corp. 151,995 165,339 226,100 75,105 133,420 116,858 (16,562) 8 General Motors Corp. 5,208,945 3,265,130 3,083,210 (125,735) 798,329 754,017 (1,044,312) 22 GlemL. Martin Co. 111,529 114,441 145,025 35,494 98,195 72,958 (25,239) 4 Grumman Aircraft and Engineering Company 48,160 79,194 96,570 48,410 43,491 44,886 1,395 2 Gulf Shipbuilding Corp. Not available Houston Shipbuilding Corp. Not available Ingalls Shipbuilding Corp. 85,016 95,044 108,000 22,984 76,820 67,580 (11,240) 3 Lockheed Aircraft Corp. 107,700 177,000 475,000 367,300 99,589 166,750 67,361 e Los Angeles Shipbuilding and Drydock Co. Not available Moore Drydock Co. 101,000 101,750 107,000 6,000 90,803 65,365 (25,438) 5 Newport News Shipbuilding and Drydock Co. Not available New York Shipbuilding Corp. 127,925 240,448 313,700 185,775 115,552 136,142 20,590 e North American Aviation, Inc. 339,010 325,358 300,050 (38,960) 225,697 113,565 (112,132) 5 Northern Pump Company 49,000 12,000 172,000 123,000 40,441 38,265 (2,176) 1 Packard Motor Car Co. 570,765 362,928 442,641 71,876 321,565 230,158 (91,409) 14 Republic Aviation Corp. 42,629 90,996 98,980 51,351 39,567 56,193 16,626 4 Robine Drydock and Repair Co. 130,957 106,737 195,699 64,742 117,584 104,366 (13,218) 5 Savage Arms Corp. 52,188 88,853 121,840 69,652 47,964 60,850 154 12,888 3 Regraded Unclassified SUMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 (CONTINUED) 2 = : Salaries after Federal Salaries 1 # :Increase : income taxes :Number : : = tin amount = 1 :Change :of ex- : 1939 : 1940 : 1941 :of salaries: 1939 : 1941 :between recutives : : = sin 1941 = : Proposer 11939 and :included : : = :over 1939 : I Rata S :1941 : Seattle-Tacoma Shipbuilding Corp. Not available Sperry Gyroscope Co.,Inc. 137,230 168,284 215,500 78,270 120,446 96,380 (22,066) 5 Standard Oil Co. (N.J.) 998,100 1,011,416 1,014,531 16,431 767,204 411,394 (355,810) 17 Studebaker Corp. 303,535 312,000 432,000 128,465 267,169 208,905 (58,264) 11 Sun 011 Company 474,800 495,500 598,782 123,982 402,156 290,281 (111,875) 15 United Aircraft Corp. 186,125 215,246 304,202 118,077 160,658 130,143 (30,515) 6 United States Steel Not available Western Cartridge Co. 85,500 142,000 370,000 284,500 80,237 144,545 64,308 7 Western Pipe and Steal Co. (Calif.) 79,500 79,500 119,250 39,750 72,889 62,917 (9,972) 4 Westinghouse Lectric & Manufacturing Co. 469,787 555,558 596,167 126,380 345,331 194,796 (148,535) 7 Westinghouse Electric Elevator Company 33,005 38,106 34,723 1,718 28,745 18,566 (10,179) 1 Total 14,580,880 16,118,926 17,977,501 3,397,62110,380,214 6,662,661 (3,717,554) 300 In general includes compensation of executives who received $10,000 and over for 1941 and for which 1839 and 1940 data are available. However, for certain corporations with a large number of executives a higher salary level was adopted. (Prepared by Statistical Section, Income Tax Unit, for Mr. Roy Blough, Director of Tax Research, April 28, 1942.) 155 Regraded Unclassified ALABAMA DRY DOCK AND SHIPBUILDING COMPANY : : 11 Increase : Salary after Federal : $ Salary = in amount : income taxes : Name of Executive Title 3 : = of salary : : Changes : = = # = in 1941 : : 1939 : 1941 $ between : 1939 = 1940 : 1941 : over 1939 : = Proposers 1939 and # : = I = = : Rdtes = 1941 D. R. Dunlap President $ 35,085 $ 54,630 $ 88,075 $ 52,990 $ 30,335 $ 29,535 $ (800) G. H. Dunlap V.P.,Secy, Treas. 20,199 32,432 56,998 36,799 18,580 24,315 5,735 J. M. Griser Vice Pres. 20,199 35,558 63,230 43,031 18,580 25,527 6,947 B. F. Campbell Vice Pres. 16,842 30,951 57,018 40,176 15,693 24,318 8,625 Total 92,325 153,571 265,321 172,996 83,188 103,695 20,507 Remarks: All executives with salary of $10,000 and over are included. 156 Regraded Unclassifie AMERICAN CAR AND FOUNDRY COMPANY # # = # Salary after Federal # # Salary :Increase = inc me taxes Name of Executive : Title = tin amount = = Changes : = 1939 I 1940 1 1941 sof salary = 1939 : 1941 :between 2 # I : sin 1941 2 # :1939 and : = I : :over 1939 I I :1941 : = = # = t I I Not shown. Official of Carter Carburetor Company $ 20,288 $ 27,088 $ 20,871 $ 585 $ 18,658 $ 15,332 $ (5,324) Not shown, Official of Carter Carburetor Company 66,000 91,000 21,328 (44,672) 51,271 13,538 (57,755) Not shown. Official of American Car and Foundry Co. 22,500 20,000 21,458 ( 1,042) 20,496 13,596 ( 6,900) Not shown. Official of American Car and Foundry Co. 24,300 22,500 21,458 ( 2,842) 21,954 15,596 ( 6,358) Not shown. Official of American Car and Foundry Co. 40,000 23,750 28,958 (11,042) 34,021 16,540 (17,481) Total 173,088 184,358 114,073 (59,015) 146,398 70,602 (75,796) Remarks: There are 50 additional officers with total salary of $900,248 in 1941 for which there are no available data for 1939. 157 Regraded Unclassifi AMERICAN ENGINEERING COMPANY = I : = Salary after Federal : # Salary :Increase # income taxes Name of Executive : Title 1 tin amount % = :Changes 2 : 1939 : 1940 I 1941 :of salary = 1939 = 1941 :between 2 : : : :in 1941 : I :1939 and : : : 2 :over 1939 : I :1941 William V. Sauter Pres. $ 10,696 $ 15,383 $ 17,573 $ 6,877 $ 10,219 $ 11,790 $ 1,571 Remarks: The Vice President and General Manger with a salary of $14,565 for 1941 and $12,307 for 1940 is the only other officer with a salary of $10,000 and over, but his salary is not available for 1939. 158 Regraded Unclassified AMERICAN WOOLEN COMPANY a I 1 $ Salary after I 1 Salary Increase = Federal Income Taxas = : ,in amounts I ,Changes Same of Executive I Title I 1939 I 1940 a 1941 sof salary: 1989 I 1941 between 2 : # a ,in 1941 I - 11939 and I a a E 10ver 1939, $ 1941 1 X. Pendleton Pres.& Sales Mgr. $ 73,126 $ 75,000 $ 125,000 $ 51,875 $ 55,227 $ 33,565 $ (21,662) 7. 8. Commett Treasurer 18,000 18,000 25,000 7,000 16,701 15,040 ( 1,661) R. H. Montgomery Clerk & Gen. Counsel 18,000 18,000 25,000 7,000 16,701 15,040 ( 1,661) C. H. Silver Gen. Sales Mgr. 45,000 45,833 65,000 20,000 37,638 26,845 (11,791) T. N. Prestwish Div. Mgr. 27,000 27,750 42,000 15,000 24,091 20,795 ( 3,296) A. B. Walls, Jr. Div. Mgr. 27,000 27,000 40,000 13,000 24,091 20,2%5 ( 3,856) H. C. Schoer Credit Mgr. 22,500 22,500 28,000 5,500 20,496 16,195 ( 4,301) E. F. Williams Res. Mgr. 25,000 26,000 45,000 20,000 22,511 21,635 ( 876) A. H. Eddy Res. Mgr. 15,000 15,000 35,000 20,000 14,076 18,665 4,579 T. E. Greenway Res. Mgr. 21,100 22,000 34,250 13,160 19,334 18,416 ( 919) W. 1. Lamont Res. Mgr. 22,500 22,500 32,500 10,000 20,496 17,815 ( 2,681) X. G. Einstein Res. Mgr. 25,000 25,000 27,500 2,500 22,511 16,015 ( 6,496) Totals 339,225 343,583 524,250 185,025 295,871 239,250 (54,621) Remarks: Data are shown only for officers with salary of $25,000 and over. There are 14 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $223,600 for 1941. 159 Regraded Unclassified BALDWIN LOCOMOTIVE WORKS # 1 = = Salary after Federal I # Salary :Increase $ income taxes Name of Executive = Title : : = :in amount : = :Changes 2 = 1939 # 1940 2 1941 10f salary 2 1939 = 1941 tbetween = # $ I rin 1941 : : :1959 and : : # 1 tover 1939 I I :1941 Charles R. Brinley Not stated $ 56,220 $ 54,240 $ 60,220 $ 24,000 $ 31,186 $ 24,959 $ (6,227) William H. Harman Not stated 25,100 36,240 40,180 15,080 22,590 20,286 (2,304) William H. Winterrowd Not stated 21,975 36,220 37,847 15,872 20,060 19,566 ( 494) Charles E. Acker Not stated 13,250 23,500 26,500 15,250 12,520 15,625 3,105 Carlos F. Noyes Not stated 18,000 25,000 28,000 10,000 16,701 16,195 ( 506) Totals 114,545 175,200 192,747 78,202 103,057 96,631 (6,426) Remarkez Data are shown only for officers with salary of $25,000 and over for 1941. There are 28 additional officers with a. salary of $10,000 and under $25,000 for 1941. The total of these salaries is $416,530 for 1941. 160 Regraded Unclassifi BATH IRON WORKS CORPORATION = I = : Salary after Federal : : Salary :Increase : income taxes Name of Executive : Title : 2 : rin amount = : :Changes : : 1939 : 1940 : 1941 :of salary : 1939 : 1941 :between : = = = :in 1941 = = :1959 and 1 : : : :over 1939 : : :1941 W.S. Newell Pres. $ 15,000 $ 19,880 $ 21,780 $ 6,780 $ 14,076 $ 14,544 $ 468 A. M. Main V.P. 10,800 14,400 15,580 4,780 10,237 10,776 539 Total 25,800 34,280 37,360 11,560 24,313 25,320 1,007 Remarks: There is an additional vice-president with a salary of $11,610 for 1941. Salary for 1939 and 1940 not available. 161 Regraded Unclassified BEECH AIRCRAFT CORPORATION # I : # Salary after Federal : : Salary :Increase 1 income taxes : I in amount 2 I :Changes Name of Executive # Title I 1939 1 1940 I 1941 10f salary : 1939 1 1941 ;between a $ # 1 sin 1941 I 3 ,1939 and # a # 1 10ver 1939 1 a 1941 Walter H. Beech Pres. $ 10,032 $ 12,500 $ 19,231 $ 9,199 $ 9,614 $ 12,586 $ 2,972 Remarks: This is the only officer listed with a salary of $10,000 and over for 1939, 1940 or 1941. 162 Regraded Unclassifie BELL AIRCRAFT CORPORATION : : : : Salary after Federal I = Salary :Increase : income taxes Name of Executive : Title = = = tin amount : = :Changes : = 1939 # 1940 = 1941 10f salary 2 1939 = 1941 :between # # # # sin 1941 = 2 :1939 and : = = # zover 1939 # 1 #1941 Lawrence D. Bell Pres. $ 25,000 $ 35,290 $ 85,000 $ 60,000 $ 22,511 $ 29,105 $ 6,594 Ray P. Whitman V. Pres. 10,000 15,920 39,167 29,167 9,585 19,988 10,405 Total 35,000 49,210 124,167 89,167 32,096 49,095 16,997 Remarks: There are 7 additional officers with total salary of $125,875 in 1941 but for which 1939 and 1940 data are not available. 163 Regraded Unclassified BENDIX AVIATION 2 PORATION # 2 = = Salary after Federal I # Salary :Increase # income taxes . I tin amount 1 # sChanges Name of Executive 1 Title : 1939 I 1940 # 1941 16f. salary # 1959 = 1941 :between I I = : sin 1941 1 1 #1939 and = I I I 10ver 1939 1 # $1941 Vincent Bendix President $ 50,000 $ 37,500 $ 60,000 $ 10,000 $ 41,131 8 24,915 # (16,216) 1. 1. Palmer V.P. & Treas. 20,000 18,750 30,000 10,000 18,565 16,915 (1,650) D. 0. Thomas Vice Pres. 27,500 20,625 33,000 5,500 24,486 17,995 (6,491) Charles Marcus Vice Pres. 39,750 27,000 45,200 3,450 35,833 21,151 (12,702) W. L. MoGrath Vice Pres. 25,000 18,750 30,000 5,000 22,521 16,915 (5,606) Total 162,250 122,625 196,200 53,950 140,536 97,871 (42,665) Remarks: Data includes all officers with salary of $10,000 and over. 164 Regraded Unclassifi BENDIX AVIATION, LTD : : = = Salary after Federal Salary = : :Increase = income taxes Name of Executive 2 Title 2 = : tin amount = 2 :Changes # # 1939 2 1940 : 1941 10f salary = 1939 = 1941 :between 2 : I = tin 1941 # : :1939 and : = 2 2 :over 1939 2 : $1941 Palmer Nichols V. P. $ 12,000 $ 10,750 $ 18,000 $ 6,000 $ 11,398 $ 11,995 $ 597 Remarks: This is the only officer receiving a salary of $10,000 and over for any of the years 1939, 1940 and 1941. 165 Regraded Unclassifie BETHLEREM STEEL CORPORATION AND SUBSIDIARY COMPANIES I I # 1 Salary after Federal 2 # Salary Increase I income taxes # I sin amount: Changes Im of Executive a Title # 1939 I 1940 : 1941 10f salary: 1989 1 1941 :between . I # I sin 1941 I I 1939 and If I I I lover 1939: I 1941 5. J. Brown Treas. $ 25,632 $ 42,846 4 47,810 $ 22,178 $ 25,010 $ 22,330 # ( 680) 3. 0. Grace Pres. (Pa.) 271,224 478,144 537,724 266,500 128,548 74,857 (55,711) c. L bask Vice Pres. 117,564 50,000 50,000 (67,364) 74,204 22,865 (51,349) 9. Best Vice Pres. 117,364 179,443 197,317 79,953 74,204 40,796 (53,406) 1. 3. Molleth Vice Pres. &See, 64,332 139,506 166,393 71,061 60,780 36,004 (24,175) J. M. Green Vice Pres. 50,198 84,690 94,620 44,422 41,268 30,389 (10,879) W. H. Stewart Vice Pres. 40,404 48,226 56,472 16,068 34,324 24,209 (10,115) P. 4. Shiek Vice Pres. &Compt. 84,332 139,506 156,398 71,061 60,780 36,004 (24,176) J. N. Larkin Vice Pres. 55,198 89,690 99,620 44,422 44,610 30,989 (13,621) Chas. R. Holton Vice Pres. 65,198 99,690 109,620 44,422 60,814 32,027 (18,787) J. P. Bender Treas. 25,632 42,846 47,810 22,178 23,011 22,330 ( 681) W. E. Johnstone Anst. 8ec. 28,843 37,843 45,345 16,622 25,640 21,757 ( 3,803) W. M. Driver Acct. Seen 24,922 33,798 41,820 16,298 22,449 20,577 ( 1,872) R. I. Schlottman Asst. Comptroller 25,078 34,088 41,622 16,544 22,575 20,689 ( 1,884 Paul Mackull Vice Pres. (Del.) 117,364 179,443 197,317 79,963 74,206 40,796 (33,408) H. 1. Warley Pres. of Sub. 40,198 51,535 57,155 16,957 34,169 24,346 ( 9,823) Total 1,173,283 1,751,294 1,934,458 761,175 794,488 502,116 (292,375) Remarks: Data are shown only for officers with salary of $35,000 and over for 1941. There are 12 additional officers with salary of $10,000 and under $35,000 for 1941, for which salary is reported for 1959 and 1940. The total of these salaries is $271,249 for 1941. 166 Regraded Unclassit BOEING AIRCRAFT COMPANY : : : : Salary after Federal 2 : Salary : Increase : income taxes : : :in amount : : :Changes Name of Executive : Title : 1939 : 1940 : 1941 :of salary : 1939 : 1941 :between : : : : :in 1941 : : :1939 and : : : : :over 1939 : # :1941 0. L. Egtvedt Chairman $ 20,000 $ 20,000 $ 20,000 $ - $ 18,411 $ 12,940 $ ( 5,471) P. G. Johnson President 6,190 20,000 20,000 13,810 6,067 12,940 6,873 F. P. Landan Vice Pres. 10,667 11,000 11,000 333 10,193 8,185 ( 2,008) R. J. Minshall Vice Pres. 11,333 12,000 12,000 667 10,795 8,785 ( 2,010) J. P. Murray Vice Pres. 9,001 10,035 11,135 2,134 8,672 8,269 ( 403) H. O. Weat Exec. V.P. 1,673 10,800 16,000 14,327 1,673 10,990 9,317 Total 58,864 83,835 90,135 31,271 55,811 62,109 6,298 Remarks: There are no additional officers with salary of $10,000 and over. 167 Regraded Unclass CHRYSLER CORPORATION = = $ Increase $ Salary after Federal : : Salary $in amount # income taxes Name of Executive : Title : 'of salary = = I Changes $ = : : $in 1941 = 1939 = 1941 $ between 1 : 1939 : 1940 # 1941 "over 1939 : : : 1939 and $ : $ : : : $ = 1941 K. T. Keller Not stated $ 100,000 $ 100,000 $ 100,000 $ - $ 67,531 $ 31,035 $ (36,496) J. B. Fields Not stated 50,000 50,000 50,000 - 41,131 22,855 (18,276) Byron C. Foy Not stated 72,000 72,000 72,000 - 54,631 27,095 (27,536) B. 2. Hutchinoon Not stated 90,000 90,000 90,000 - 63,331 29,805 (33,526) W. Ledyard Mitchell Not stated 60,000 60,000 60,000 - 47,671 24,915 (22,756) A. Van Der Zee Not stated 37,500 47,284 50,000 12,500 32,146 22,855 ( 9,291) H. L. Weckler Not stated 45,000 63,750 72,000 27,000 37,636 27,095 (10,541) Fred M. Zeder Not stated 85,000 85,000 85,000 - 61,081 29,105 (31,976) 0. R. Skelton Not stated 60,000 60,000 60,000 - 47,671 24,915 (22,756) Carl Breer Not stated 60,000 60,000 60,000 - 47,671 24,915 (22,756) D. A. Wallace Not stated 35,000 43,633 50,000 15,000 30,271 22,855 ( 7,416) C. E. Bleicher Not stated 26,500 35,567 42,333 15,833 23,696 20,889 ( 2,807) N. J. O'Neil Not stated 32,500 43,633 50,000 17,500 28,356 22,855 ( 5,501) D. S. Eddins Not stated 40,000 44,167 50,000 10,000 34,021 22,855 (11,166) Total 793,500 855,034 891,333 97,833 616,846 354,044 (262,800) Remarks: Data are shown for only those officers with salary of over $40,000 in 1941. There are 92 additional officers with salary of $10,000 and under $40,000 with B total salary of $1,415,936 in 1941. 168 Regraded Unclassified CONSOLIDATED AIRCRAFT CORPORATION # I :Increase in I Salary after Federal # I Salary :amount of sal-: income taxes # I sary in 1941 I - :Changes Name of Executive I Title : 1939 I 1940 # 1941 :over 1939 I 1939 I 1941 :between I I # I I I 1 1939 and I I a I 1 I = :1941 I. M. Laddon Vice-Pres. $ 18,000 $ 25,650 $ 37,505 $ 19,505 $ 16,701 $ 19,457 $ 2,756 R. H. Fleet President-Mgr. 20,000 35,943 62,505 42,505 18,411 25,396 6,985 C. T. Leigh Vice Pres. 14,000 20,036 28,130 14,130 13,191 16,242 3,051 c. A. Van Dusen Vice Pres. 16,000 22,443 31,256 16,256 14,956 17,367 2,411 J. L. Kelley Assistant Seo. 12,000 18,109 25,172 13,172 11,390 15,107 3,709 Total 80,000 122,161 164,567 104,567 74,657 93,569 18,912 Remarks: Data are shown only for officers with salary of $25,000 and over for 1941. There are 17 additional officers with salary of $10,000 and under $25,000 for 1941, for which salary is reported for 1939 and 1940. The total of these salaries is $236,514 for 1941. 169 Regraded Unclassified CONSOLIDATED STARL CORPORATION, LIMITED 1 : : : Salary after Federal : : Salary : Increase : income taxes : : :in amount : : :Changes Name of Executive : Title : 1939 : 1940 : 1941 :of salary : 1939 1 1941 :between : : : : :in 1941 : : :1939 and : : : : :over 1939 : : :1941 D. G. Henderson Not stated $ 16,000 $ 13,667 $ 22,000 $ 6,000 $ 14,956 $ 13,825 $ ( 1,131) Alden G. Roach Not stated 14,000 11,333 22,000 5,000 13,191 13,825 634 L. R. Earl Not stated 6,350 5.333 12,000 5,650 6,221 8,785 2,564 H. C. Cranfill Not stated 4,050 3,138 10,000 5,950 4,004 7.565 3.561 Total 40,400 33,471 66,000 25,600 38,372 44,000 5,628 1939 data for calendar year - 1940 for period January 1, 1940 to August 31, 1940 - 1941 fiscal year ended August 31, 1941. Remarks: There is one additional officer with a salary of $15,000 for 1941, but no salary reported for 1939 and 1940. 170 Regraded Unclassifie CONTINENTAL MOTORS CORPORATION # I $ I Salary after Federal # 2 Salary I Increase I income taxes 2 I I in amount 1 :Changes June of Executive , Title . 1939 I 1940 I 1941 I of salary : 1959 : 1941 :between 1 : : - # in 1941 a I 11939 and # : : I I over 1939 1 1 :1941 W. R. Angell, Sr. Technical Adviser $ 18,000 $ 13,000 $ 12,000 $ (6,000) $ 16,701 $ 8,785 $ (7,916) Clarence Reese President 12,000 16,604 40,903 28,903 11,398 20,488 9,090 Total 30,000 29,604 62,903 22,903 28,099 29,273 1,174 Remarks: 5 additional officers have salaries of $10,000 and over for 1941, but their salaries are not reported for 1939 or 1940. The total of the 1941 salaries for these 5 additional officers is $109,165. 171 Regraded Unclassifie DIAMOND T. MoΓoH .R COMPANY : : : Increase : Salary after Federal : 1 Salary 2 in amount : income taxes : : Title : of salary $ : Name of Executive : Changes : = # : $ in 1941 = 1939 = 1941 1 between : : 1939 : 1940 : 1941 : over 1939* $ # 1939 and = : : $ : : 1 = 1941 C. A. Tilt Pres.,Treas. $ 45,000 $ 45,000 $ 60,000 $ 15,000 $ 37,636 $ 24,915 $ (12,721) E. J. Bush V.P.,S.Mgr. 23,735 22,177 59,152 35,417 21,496 24,745 3,249 Sidney A. Cook V.P.,Secy. 23,735 22,177 59,152 35,417 21,496 24,745 3,249 C. A. Peirce V.P.,Ch.Engr. 23,735 22,177 59,152 35,417 21,496 24,745 3,249 H. C. Emberson Purch.Agt. 13,186 13,321 33,973 20,787 12,463 18,326 5,863 T. C. Huxley, Jr. V.P.,S.Mgr. 13,686 15,321 33,973 20,287 12,910 18,326 5,416 F. J. Hollearn Dist. Mgr. 17,300 14,491 18,696 1,396 16,092 12,329 (3,763) L. P. Larsen Dist. Mgr. 10,006 10,454 10,771 765 9,590 8,043 (1,547) C. G. Wirick Nat.Acct.Rep. 38,196 10,926 41,155 2,959 32,668 20,558 (12,110) G. C. Stevens Chgo.Branch 12,068 12,706 19,589 7,521 11,459 12,755 1,296 Total 220,647 188,750 395,613 174,966 197,306 189,487 (7,819) Remarks: There are 13 additional officers with salary of $10,000 or more for 1941, for which salaries for 1939 or 1940 are not available. 172 Regraded Unclassified DOUGLAS AIRCRAFT COMPANY INCORPORATED : : : : Salary after Federal Increase : : Salary : : income taxes in amount : : : : Name of Executive Title : 1939 # 1940 1941 of salary 1939 : : 1941 Changes : : : : in 1941 between : : : : : : : : over 1939 1939 and 2 : : : : : : : 1941 F. W. Conant Not stated $ 9,000 $ 11,500 $ 20,500 $ 11,500 $ 8,671 $ 13,165 $ 4,494 Carl A. Cover Not stated 30,000 37,500 52,500 22,500 26,431 23,415 ( 3,016) Donald W. Douglas Not stated 66,667 75,000 105,000 38,333 51,651 31,565 ( 20,086) E. E. Guerin Not stated 37,298 12,646 42,791 5,493 31,994 21,016 ( 10,978) A. E. Raymond Not stated 23,750 25,000 32,500 8.750 21,508 17,815 ( 3,693) Total 166,715 161,646 253,291 86,576 140.255 106,976 ( 33,279) Remarks: Data are shown only for officers with salary of $20,000 and over for 1941. 16 additional officers received salary of $20,000 and over for 1941. The total salary of these 16 officers for 1941 is $198,570. 173 Regraded Unclassified 3. I. dupost DE NEMOURS AND COMPANY : : : : Salary after Federal : : Salary : Increase : income taxes : : : in amount : 1939 : 1941 :Changee Name of Executive : Title : 1939 : 1940 : 1941 : of salary : : :between : : : : in 1941 : : 1 :1939 and : : H : 1 over 1939 - : :1941 J. Thompson Brown Vice Pres. $ 174,825 $ 190,187 $ 120,470 $( 54,355) 95.593 $ 33,112 $ (62,481) W. 8. Carpenter, Jr. President. 213,806 290,766 214,470 664 109,400 42,512 (66,858) J. E. Crane Vice Pres. 179,394 194,587 116,930 ( 62,464) 97,238 32,758 (64,480) A. B. Schols Vice Pres. 178,435 198,582 129,990 ( 48,445) 96,893 34,064 (62,829) V. F. Harrington Vice Pres. 179,685 197,178 122,670 ( 57,015) 97.343 33,332 (64,011 J. W. McCoy Vice Fres. 168,185 186,698 122,690 ( 45,495) 93,203 33,334 (59,869) 0. M. A. Stine Vice Pres. 172,915 189,248 120,470 ( 52,445) 94,905 33,112 (61,793) F. A. Wardenburg Gen. Mgr. 140,196 151,866 90,970 ( 49,226) 82,880 29,941 (52.939) E. B. Tancey Gen. Mgr. 111,508 101,864 92,990 ( 18,518) 71,979 30,193 (41,786) William Richter Gen. Mgr. 162,763 171,493 94,890 ( 67,873) 91,250 30,421 (60,829) E. G- Robinson Gen. Mgr. 169,655 184,115 107,620 ( 62,035) 93.732 31,827 (61,905) L. A. Yerkes Gen. Mgr. 167,742 118,095 112,601 ( 55,141) 93,043 32,325 (60,718) Total 2,019,109 2,174,679 1,446,761 (572.348) 1,117,459 396,931 (720,528) Remarks: Data are shown only for officers with salary of $90,000 and over for 1941. There are 27 additional officers with salary of $10,000 and under $90,000 for 1942. The total of these salaries is $1,187,453 for 1941. 174 Regraded Unclassified ELECTRIC BOAT COMPANY # : : = Salary Salary after Federal 1 = :Increase I income taxes Name of Executive : Title z 2 : :in amount # = :Changes = : 1939 2 1940 t 1941 :of salary : 1939 2 1941 :between 2 = : = tin 1941 : 2 :1959 and = : : I rover 1939 : 2 :1941 H. Carsi Pres. $ 30,000 $ 31,000 $ 36,000 $ 6,000 $ 26,431 $ 18,975 $ (7,456) H. R. Sutplin V. Pres. 30,000 31,000 36,000 6,000 26,431 18,975 (7,456) T. Y. Spear V. Pres. 30,000 31,000 36,000 6,000 26,431 18,975 (7,456) H. A. Taylor Treasurer 11,000 12,083 13,000 2,000 10,506 9,365 (1,141) Total 101,000 105,083 121,000 20,000 89,799 66,290 (25,509) Remarks: All executives with salary of $10,000 and over are included. 175 Regraded Unclassified FORD MOTOR TPANY = : 3 Increase = Salary after Federal : $ Salary : = income taxes in amount : : 1 : $ Name of Executive Title : Changes # : : # : of salary = : : between : $ 1939 1940 1941 in 1941 1939 1941 # F = # = = 1939 and over 1939 : : # : = : = : 1941 M. L. Bricker Not stated $ 52,000 $ 56,307 $ 67,873 $ 15,873 $ 42,511 $ 26,362 $ (16,149) W. J. Cameron Not stated 39,000 40,505 43,005 4,005 33,271 21,077 (12,194) B. J. Craig Not stated 104,000 109,466 116,082 12,082 69,126 32,673 (36,453) John Crawford Not 49,500 52,812 58,874 9,374 40,786 24,690 (16,096) H. C. Doss Not stated stated stated stated 32,500 45,175 51,223 18,723 28,356 23,148 ( 5,208) Risel B. Ford Not 143,000 144,620 234,757 91,757 83,946 44,541 (39,405) Jos. Galamb Not stated 54,500 54,582 56,102 1,602 44,156 24,136 (20,020) P. E. Martin Not 169,000 178,259 82,983 (86,017) 93,496 28,823 (64,673) Herman L. Mockle Not stated 39,000 41,688 50,237 11,237 33,271 22,912 (10,359) W. F. Pioch Not stated 26,000 28,548 37,010 11,010 23,301 19,299 ( 4,002) R. R. Rausch Not stated 19,000 21,002 45,027 26,027 17,561 21,643 4,082 R. I. Roberge Not stated 35,000 37,921 42,964 7,964 30,271 21,064 ( 9,207) L. S. Sheldrick Not stated 35,000 37,629 47,653 12,653 30,271 22,292 ( 7,979) Charles E. Sorenson Not stated 169,000 177,005 220,005 51,005 93,496 43,066 (50,430) 4. M. Wibel Not stated 78,000 82,951 101,051 23,051 57,751 31,161 (26,590) J, R. Davis Not stated 47,000 47,000 47,000 - 39,061 22,135 (16,927) W. K, Edmunds Not stated 41,500 41,500 41,500 I 35,116 20,655 (14,461) Ned Fuller Not stated 39,000 41,809 46,350 7,350 33,271 21,979 (11,292) R. H. McCarroll Not stated 28,500 31,072 39,585 11,085 25,276 20,119 ( 5,157) H. B. Fiansom Not stated 27,500 29,250 37,269 9,769 24,486 19,381 ( 5,105) Total 1,228,000 1,299,101 1,466,550 238,550 878,780 511,156 (367,625) Remarks: Data are shown only for officers with salary of $35,000 and over for 1941. There are 100 additional officers with salary of $10,000 and under $35,000 for 1941. The total of these salaries is $2,023,764 for 1941. 176 Regraded Unclassified THE GENERAL MACHINERY CORPORATION : : = = Salary Salary after Federal = = :Increase : income taxes Name of Executive : Title : = : :in amount = # :Changes : = 1939 : 1940 : 1941 :of salary : 1939 # 1941 :between # = : : sin 1941 t 2 :1959 and t : : : rand 1939 # 2 :1941 G. A. Rentschler Pres. $ 62,000 $ 65,000 $ 95,000 $ 31,000 $ 48,891 $ 30,195 $ (18,696) J. E. Paterson V. Pres. 17,000 19,000 25,000 8,000 15,831 15,040 ( 791) W. A. Rentschler V. Pres. 7,800 8,850 16,500 8,700 7,567 11,245 3,678 A. A. Bywrlein V. Pres. 23,000 25,000 22,500 ( 500) 20,901 14,035 ( 6,866) C. T. Ziegler V. Pres. 12,500 12,500 13,000 500 11,850 9,365 ( 2,485) Frederick Rits Plant Supt. 13,000 13,200 18,000 5,000 12,297 11,995 ( 302) A. C. Wais Plant Supt. 11,025 15,500 20,000 8,975 10,517 12,940 2,425 P. C. McBath Salesman 5,670 8,289 18,100 12,430 5,566 12,043 6,477 Total 151,995 165,339 226,100 75,105 133,420 118,858 (16,562) Remarket There are 3 additional officers with salaries of $10,000 and over for 1941. These salaries total $53,500. No 1939 data available. 177 Regraded Unclassified GENERAL MOTORS CORPORATION = E : I Salary after Federal # I Salary tIncrease : income taxes Name of Executive : Title I tin amount E = :Changes : I 1959 : 1940 = 1941 10f salary = 1959 : 1941 :between I t = = gin 1941 : # :1939 and 1 : # = tover 1959 : : :1941 : : : = : 2 = a Anderson, Anthony C. Comptroller $ 62,395 $ 61,585 $ 54,708 8 ( 7,687) 49,132 $ 23,857 $ (25,275) Bradley, Albert V. Pres. 258,176 254,868 235,224 (22,952) 124,372 44,587 (79,785) Breech, Ernest R. V. Pres. 86,430 95,914 92,537 6,107 61,724 30,139 (31,585) Brown, Donaldson V. Pres. 258,124 254,867 227,252 (30,872) 124,356 43,790 (80,566) Donner, Frederic G. V. Pres. 47,255 56,010 85,954 38,699 39,237 29,239 ( 9,998) Earl, Harley J. V. Pres. 102,816 110,869 99,610 ( 3,206) 68,676 30,988 (37,688) Evans, Ronald K. V. Pres. 120,309 132,329 129,220 8,911 75,323 33,987 (41,888) Fisher, Lawrence P. V. Pres. 206,762 195,774 134,715 (72,047) 107,005 34,536 (72,469 Carrett, Paul V. Pres. 39,511 39,143 43,864 4,355 33,654 21,317 (12,537) Grant, Richard H. V. Pres. 206,712 204,015 146,698 (60,014) 106,988 55,755 (71,255) Hogan, Henry M. V. Pres. 65,817 72,002 88,454 22,637 51,167 29,589 (21,578) Hunt, Ormond E. V. Pres. 206,712 224,731 274,734 68,022 106,988 48,538 (58,450) Kimkle, Bayard,D. V. Pres. 105,309 121,496 94,809 (10,500) 69,623 30,412 (59,211) Mooney, James D. V. Pres. 206,612 178,262 138,876 (67,736) 106,954 34,955 (72,001) Prentis, Meyer L. Treasurer 88,443 84,486 70,649 (17,794) 62,630 26,862 (55,768) Sloan, Alfred P. Jr. Ch.of Brd. 200,450 200,500 200,550 100 104,818 41,120 (63,698) Smith, John T. V. Pres. 258,176 254,868 227,152 (51,024) 124,372 43,780 (80,592) Spencer, Louis M. Dir.,Pat.Sec. 27,638 36,174 40,844 13,206 24,595 20,471 ( 4,124) Tanner, Floyd 0. V. Pres. 88,816 77,165 45,908 (42,913) 62,798 21,872 (40,926) Williams, William C.,Jr. V. Pres. 55,998 70,286 96,732 40,734 45,150 30,643 (14,487) Wilson, Charles E. President 258,076 286,826 527,973 69,897 124,340 63,862 (70,478) Kettering, Charles F. Gen.Mgr. 258,408 254,960 226,752 (31,656) 124,447 48,740 (80,707) Total 5,208,945 3,265,130 5,083,210 (125,735) 1,798,329 754,017 (1,044,312) Remarks: Data are shown only for officers with salary (excluding bornus awards) of $25,000 and over for 1941. However, the amount of salary tabulated includes bomis awards. There are 52 additional officers with salary (excluding bonus awards) of $10,000 and under $25,000 for 1941, for which salary is reported for 1939 and 1940. The total of these salaries (excluding bonus awards) ie $735,792 for 1941, 178 Regraded Unclassified GLENN L. MARTIN COMPANY I = a I Salary after Federal 1 I Salary :Inorease I income taxes 2 I sin amount 1 = sChanges Name of Executive # Title 1 1939 I 1940 = 1941 10f salary I 1939 I 1941 abstween 1 # a : :in 1941 1 1 1939 and I 2. # I 10ver 1939 1 1 :1941 Glenn L. Martin Pres. $ 33,970 $ 40,200 # 60,260 $ 26,290 $ 29,488 $ 24,967 $ (4,521) J. T. Hartson Vios Pres. 35,857 34,570 37,408 1,551 30,914 19,426 (11,488) H. 7. Volmer Vies Pres. 28,124 26,563 30,220 2,096 24,979 16,994 (7,985) M.G. Shook Treasurer 13,578 13,108 17,135 3,557 12,814 11,669 (1,245) Total 111,529 114,441 145,023 33,494 98,195 72,958 (25,239) Remarks: One additional vice president had salary of $22,572 for 1941, but no salary reported for him for 1939 and 1940. 179 Regraded Unclassified GRUMMAN AIRCRAFT ENGINEERING CORPORATION # I :Increase 1 Salary after Federal Name of Executive I Title # Salary in amount 1 income taxes # : 10f salary 1 I a Changes I I 1939 I 1940 : 1941 ,in 1941 I 1939 # 1941 : between 3 1 I 1 1 over 1939 = a : 1939 and I I 1 : I I I 1941 Leroy R. Grumman Not stated $ 26,580 $ 42,097 $ 50,785 $ 24,205 # 23,759 + 23,043 $ (716) Leon Swirbul Not stated 21,580 37,097 45,785 24,205 19,732 21,843 2,111 Total 48,160 79,194 96,570 48,410 43,491 44,886 1,395 Remarks: For 1941 there are 5 additional officers with salaries of $10,000 and over. The total salary of these officers is $76,043. 180 Regraded Unclassifie THE INGALLS SHIPBUILDING CORPORATION : I = = Salary after Federal 2 = Salary :Increase : income taxes Name of Executive : Title : : = :in amount : : :Changes # : 1939 # 1940 = 1941 :salary in : 1939 : 1941 :between : = : = :1941 over # = :1939 and # : : = :1939 : = :1941 R. I. Ingalls Chair.of Brd. $ 25,000 $ 25,000 $ 25,000 - $ 22,511 $ 15,040 $ (7,471) R. I. Ingalls, Jr. V. Pres. 15,000 15,000 15,000 - 14,076 10,465 (3,611) Monro B. Lanier Pres. 15,000 19,167 25,000 $ 10,000 14,076 15,040 964 W. R. Guest V. Pres. 16,266 20,877 25,000 8,734 15,190 15,040 ( 150) A. J. Grassick Gen. Mgr. of 13,750 15,000 18,000 4,250 12,967 11,995 ( 972) Shipyard Total 85,016 95,044 108,000 22,984 78,820 67,580 (11,240) Remarks: There are no other officers receiving a salary of $10,000 and over for 1941. il 181 Regraded Unclassifie LOCKHEED AIRCRAFT CORPORATION I 2 I I Salary after Federal : I Salary I Increase 1 income taxes I I 2 in amount # 1 Changes Name of Executive : Title : 1939 I 1940 = 1941 1 of salary 2 1939 = 1941 ,between à I I I I in 1941 I - 1939 and : a I I I over 1939 I I 1841 Robert B. Grass President $ 27,400 $ 44,750 $ 125,000 $ 97,600 $ 24,407 $ 33,666 # 9,158 C. A. Barker, Jr. Vice Pres. 18,000 30,000 90,000 72,000 16,701 29,805 13,104 Carl B. Squier Vice Pres. 17,800 26,000 65,000 47,200 16,527 25,845 9,318 Hall L. Hibbard Vice Pres. 17,500 26,250 65,000 47,500 16,266 25,845 9,579 R. A. Von Hoke Vice Pres. 14,000 25,000 65,000 61,000 13,191 25,845 12,654 Cyril Chapellet Sec. 13,000 25,000 65,000 52,000 12,297 25,645 13,548 Totals 107,700 177,000 475,000 367,300 99,389 166,750 67,361 Remarks: There are 2 additional officers with salaries of $22,000 and $19,000 in 1941 and $7,800 and $6,300 respectively in 1939. 182 Regraded Unclassifie MOORE DRY DOCK COMPANY : : 1 = Salary after Federal 1 I Salary :Increase # income taxes I # ,in amount: 1 ,Changes Name of Executive I Title a 1939 I 1940 1 1941 10f salary: 1939 1 1941 sbetween : # I I sin 1941 1 $ 1939 and I I = I 10ver 1939: $ :1941 Jos. A. Moore Chm. of Board $ 40,000 $ 40,000 $ 40,000 # - $ 34,021 $ 80,235 $ (13,786) Nat Levey Vice Presand Sec. 15,000 15,000 15,000 - 14,076 10,466 ( 3,611) A. R. Viner Vice Pres. & Treas. 6,000 6,750 12,000 6,000 5,884 8,785 2,901 Jos. A. Moore, Jr. Pres. & Gen. Mgr. 20,000 20,000 20,000 - 18,411 12,940 ( 5,471) J. R. Moore Vice Pres. 20,000 20,000 20,000 - 18,411 12,940 ( 5,471) Total 101,000 101,750 107,000 6,000 90,808 65,366 (25,438) Remarks: There are no additional officers with salary of $10,000 and over. 183 Regraded Unclassified NEW YORK SHIPBUILDING CORPORATION = : : Salary after Federal I Salary # Increase : income taxes : in amount : = = Changes Name of Executive Title : 1939 : 1940 = 1941 : of salary = 1939 2 1941 = between : 2 = = in 1941 I : : 1939 and over 1939 # 1941 H. Lockhart, Jr. Ch. of Brd. $ 52,131 $ 66,919 $ 75,600 $ 43,469 $ 28,072 $ 27,671 $ (401) J. F. Metten President 32,105 53,655 75,600 43,495 28,052 27,671 (381) R. S. Campbell Vice Pres. 19,582 39,791 54,000 34,418 18,056 23,715 5,659 R. S. Pruitt Sec., G.C. 15,400 27,027 36,500 21,100 14,428 19,135 4,707 K. Gardner Labor Coun. 18,000 26,528 36,000 18,000 16,701 18,975 2,274 N. R. Parker Treasurer 10,707 26,528 36,000 25,293 10,243 18,975 8,752 Total 127,925 240,448 313,700 185,775 115,552 136,142 20,590 Remarks: There are 17 additional officers with salaries of $10,000 and over for 1941, for which salaries for 1939 or 1940 are not available. 184 Regraded Unclassified NORTH AMERICAN AVIATION, INC # = 2 : Salary after Federal I : Salary :Increase : income taxes Name of Executive # Title # = = tin amount : = :Changes : : 1939 = 1940 - 1941 tof salary : 1959 : 1941 :between : # = : sin 1941 = : 1959 and : I = : tover 1939 = # :1941 J. H. Kindelberger Pres. $ 186,110 $ 166,350 $ 135,250 $ (50,860) $ 99,656 $ 54,590 $ (65,066) J. L. Atwood V. Pres. 75,000 78,533 71,350 ( 5,650) 56,221 26,988 (29,235) R. A. Lambeth Treasurer 24,600 25,425 28,450 3,850 22,195 16,357 ( 5,838) J. S. Smithson Factory 28,700 28,975 32,500 3,800 25,450 17,816 ( 7,615) Mgr. R. H. Rice Chf. Eng. 24,600 26,075 32,500 7,900 22,195 17,816 ( 4,580) Total 339,010 325,358 300,050 (38,960) 225,697 113,565 (112,132) Remarks: Data are shown only for officers with salary of $25,000 and over for 1941. There are 15 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $214,258. 185 Regraded Unclassif NORTHERN PUMP COMPANY : : : : Salary after Federal : Salary : Increase : : income taxes in amount : : : : : : 1939 1940 of salary : Changes Name of Executive : Title : : 1941 : 1939 : : in 1941 : 1941 : between : : : : over 1939 1939 and : : : : : : :1941 J. B. Hawley, Jr. President $ 49.000 $ 12,000 $172,000 $123,000 $ 40,441 $ 38,265 $ (2,176) Remarks: There is an additional vice president for 1940 and 1941 with a salary for 1940 of $6,000 and with a salary of $43,000 for 1941 but no salary is reported for 1939. The secretary-treasurer has a salary of under $10,000 for 1941. 186 Regraded Unclassified PACKARD MOTOR CAR COMPANY W : : : = Salary after Federal : 1 Salary Increase : income taxes Name of Executive : Title # : # :in amount : # :Changes : : 1939 # 1940 = 1941 :of salary # 1959 : 1941 rbetween 2 2 = : :in 1941 es = :1959 and : : 2 = gover 1939 : = :1941 E. C. Hoeyle Comptroller $ 14,481 $ 13,423 $ 17,840 $ 3,359 $ 13,619 $ 11,918 $ ( 1,701) J. H. Marks V. Pres. 21,050 19,250 31,080 10,030 19,292 17,304 ( 1,988) G. T. Christopher V. Pres. 45,950 43,250 58,500 12,550 38,320 24,615 (13,705) W. M. Packer V. Pres. 38,588 33,000 42,920 4,352 32,962 21,052 (11,910) Hugh J. Ferry Treas. 20,321 18,884 21,050 709 18,684 15,404 ( 5,280) N. Tibbitts V. Pres. 15,240 15,145 17,430 2,190 14,287 11,719 ( 2,568) M. M. Gilman Pres. 65,260 75,380 75,420 10,160 50,849 27,642 (25,207) 4. Macauley Ch. of Brd. 45,280 45,340 45,340 60 37,838 21,750 (16,108) J. G. Vincent V. Pres. 34,250 31,250 45,670 9,420 29,703 21,262 ( 8,441) C. R. Paton Ch. Engr. 20,150 18,000 21,340 1,190 18,538 13,543 ( 4,995) L. W. Slack Asst.sales 13,850 13,667 17,088 5,238 13,056 11,544 ( 1,512) Mgr. G. H. Brodie Mgr.of Div. 8,970 9,064 16,258 7,288 8,643 11,122 2,479 W. L. Griswold Statistician 16,575 15,500 19,500 2,925 15,461 12,715 ( 2,746) R. N. Brown Mech. Supt. 10,800 11,775 15,225 4,425 10,313 10,586 278 Total 370,765 362,928 442,641 71,876 321,585 230,156 (91,409) Remarks: Data are shown only for officers with salary of $15,000 and over for 1941. There are 15 additional officers with a salary of $10,000 and under $15,000 for 1941. The total of these salaries is $179,688 for 1941. 187 Regraded Unclassified REPUBLIC AVIATION CORPORATION : : : : Salary after Federal : : Salary :Increase : income taxes : : :in amount : : :Changes Name of Executive : Title : 1939 : 1940 : 1941 :of salary : 1939 : 1941 !between : : : : :in 1941 : : :1939 and : : : : :over 1939 : : :1941 W. Wallace Vellett President $ 25,875 $ 36,120 $ 37,280 $ 11,405 $ 23,202 $ 19,385 $( 3,817) A. Kartvele Vice Fres. 8,602 16,636 19,500 10,898 8,306 12,715 4,409 J. L.Mc Clane Vice Pres. 3,194 25,620 24,200 21,006 3,179 14,728 11,549 T. Davis Sec.-Treas. 4,958 12,620 13,000 8,042 4,380 9,365 4,485 Total 42,629 90,996 93.980 51,351 39.567 56,193 16,626 Remarks: There are 3 additional officers with salary of $10,000 and over for 1941, but salary for 1939 or 1940 1e not reported. The total of the salaries for these 3 officers le $56,700 for 1941. 188 Regraded Unclassified ROBINS DRY DOCK AND REPAIR COMPANY = I I = Salary after Federal a I Salary :Inorease 1 income taxes I I rin amount: 1 Changes Name of Executive : Title I 1939 I 1940 I 1941 of salary: 1939 = 1941 :between I 1 $ I sin 1941 I 1 1939 and I I $ I :over 1939: I 1941 John D. Reilly Chm. of Board $ 33,000 $ 33,275 $ 53,869 $ 20,869 $ 28,741 $ 23,689 $ (5,052) J. Herbert Todd No title 25,010 25,208 32,535 7,525 22,519 17,828 (4,691) Francis J. Gilbride President 34,010 35,292 41,746 7,736 29,519 20,724 (8,795) Fred D. Healey, 8r. Vice President 15,427 18,654 21,967 6,540 14,452 13,811 ( 641) Joseph Hang, Jr. Vice President 11,510 13,808 22,282 10,772 10,965 13,945 2,988 James E. Barns No title 12,000 12,000 23,300 11,300 11,398 14,371 2,975 Total 130,957 106,737 195,699 64,742 117,584 104,366 (13,218) Remarks: Data are shown for only those officers with salary of over $20,000 in 1941. There are 6 additional officers with total salary of $60,390. 189 Regraded Unclassified SAVAGE ARMS CORPORATION : : Salary : : Salary after Federal I : Increase = income taxes Name of Executive : Title : 2 = tin amount : = :Change be- : 2 1939 : 1940 : 1941 :of salary : 1939 : 1941 :twen 1939 : = = 2 rin 1941 2 : :and 1941 # : : # tover 1939 : : = W. L. Wright Ch. of Brd. $ 26,891 $ 34,232 $ 33,740 $ 6,849 $ 24,005 $ 18,251 $ ( 5,754) F. F. Hickey Pres. 15,415 30,373 48,780 35,365 12,668 22,562 9,894 E. A. MacDonald V. Pres. 11,882 24,248 39,520 27,438 11,291 20,037 8,746 Total 52,188 88,853 121,840 69,652 47,964 60,850 12,886 Remarks: There 1s one general manager with & salary and bonus of $33,000 in 1941 and $18,899 in 1940, but with no salary shown for 1939. 190 Regraded Unclassified SPERRY GYROSCOPE COMPANY, INCORPORATED = : = : Increase Salary after Federal E : Salary : : income taxes in amount : : " Title : = Name of Executive of salary : Changes # : : # : = = I between $ 1939 1940 1941 in 1941 1939 1941 : : $ : : : over 1939 : 1939 and : = = = $ : : : 1941 Thomas A. Morgan Ch. of Brd. $ 34,421 $ 37,484 $ 62,500 $ 28,079 $ 29,835 $ 25,395 $ (4,440) Reginald E. Gillmor President 43,107 50,000 75,000 31,893 36,273 27,575 (8,698) Preston R. Bassett Vice Pres. 29,302 33,500 37,500 8,198 25,894 19,455 (6,439) Robert B. Les Vice Pres. 18,500 22,000 23,500 5,000 17,136 14,455 (2,681) Herbert H. Thompson Secretary 11,900 15,300 17,000 5,100 11,308 11,500 192 Total 137,230 158,284 215,500 78,270 120,446 98,380 (22,066) Remarks: 5 additional officers received salary of $10,000 and over for 1941, but salaries for 1939 and 1940 not reported. The total of the salaries of these 5 additional officers for 1941 is $87,367. 191 Regraded Unclassi STANDARD OIL COMPANY AND SUb. DIARIES (NEW ERSEY) : : : Increase : Salary after Federal : $ Salary : in amount : income taxes Name of Executive : Title : 1 of salary : 1 : Changes : : : = : in 1941 : 1939 , 1941 : between $ I 1939 % 1940 I 1941 : over 1939 1 : : 1939 and : : : I : : : : 1941 No names given $ 40,000 $ 40,000 $ 40,000 $ - 8 34,021 $ 20,235 $ (13,786) 125,000 125,000 125,000 - 77,106 33,565 (43,541) 80,000 80,000 80,000 - 58,731 28,375 (30,356) 90,000 90,000 90,000 - 63,331 29,805 (33,526) 50,000 55,000 55,000 5,000 41,131 23,915 (17,216) 75,000 75,000 75,000 I 56,221 27,575 (28,646) 55,000 49,208 45,000 (10,000) 44,481 21,635 (22,846) 42,500 47,500 44,531 2,031 35,836 21,504 (14,332) 35,000 35,000 35,000 - 30,271 18,655 (11,616) 45,000 45,000 45,000 - 37,636 21,635 (16,001) 40,000 45,000 45,000 5,000 34,021 21,635 (12,386) 50,000 50,000 50,000 - 41,131 22,855 (18,276) 45,100 45,000 50,000 4,900 37,708 22,855 (14,853) 60,000 54,208 50,000 (10,000) 47,671 22,855 (24,816) 42,500 47,500 50,000 7,500 35,836 22,855 (12,981) 90,000 90,000 90,000 - 63,331 29,805 (33,526) 33,000 38,000 45,000 12,000 28,741 21,635 ( 7,106) Total 998,100 1,011,416 1,014,531 16,431 767,204 411,394 (355,810) Remarker Data are shown for only those officers with salary of $40,000 and over in 1941. There are 154 edditional officers with salaries of $10,000 and under $40,000 with a total salary of $2,404,311 in 1941. 192 Regraded Unclassified studebaker CORPORATION : : = = Salary Salary after Federal # # :Increase : income taxes Name of Executive # Title 2 # # :in amount = : aChanges : : 1939 I 1940 : 1941 :of salary = 1939 : 1941 :between 2 : : # sin 1941 2 = 1939 and : = : : :over 1939 : = :1941 R. B. Cole V. Pres. $ 25,828 $ 24,000 $ 34,000 $ 8,172 $ 23,165 $ 18,335 $ ( 4,850) K. B. Elliott V. Pres. 22,828 24,000 34,000 11,172 20,762 18,335 ( 2,427) Bert Fowler Gen. Supt. 18,697 18,000 25,000 6,303 17,303 15,040 ( 2,265) P. G. Hoffman Pres. 50,000 60,000 81,000 31,000 41,151 28,535 (12,596) W. S. James Chief Eng. 20,262 18,000 25,000 4,738 18,634 15,040 ( 3,594) Geo. D. Keller V. Pres. 21,740 24,000 54,000 12,260 19,865 18,335 ( 1,530) B. C. Mendler Mgr.of Div. 20,262 18,000 25,000 4,738 18,634 15,040 ( 5,594) P. 0. Peterson Dir. of Pur. 20,262 18,000 25,000 4,738 18,634 15,040 ( 3,594) R. A. Vail V. Pres. 27,828 24,000 84,000 6,172 24,745 18,335 ( 6,410) H. S. Vance Chr.of Brd. 50,000 60,000 81,000 31,000 41,131 28,555 (12,596) C. X. Whittaker Pres., Sub. 25,828 24,000 34,000 8,172 23,165 18,335 ( 4,830) Total 503,535 312,000 432,000 128,465 267,169 208,905 (58,264) Remarks: Data are shown for only those officers with salary of $25,000 and over in 1941. There are 14 additional officers with salaries of $10,000 under $25,000 with total salary of $231,813 in 1941. 193 Regraded Unclassified SUN OIL COMPANY : a 1 # Salary after Federal a # a Increase 3 income tame : I Salary 1 in amount a 1 ,Changes Name of Executive 2 Title I 1959 : 1940 1 1941 I of salary I 1939 E 1941 between I I # : I in 1941 5 , ,1939 and : I I : 1 over 1939 I a 1941 J. Howard Pew Pres. $ 60,000 $ 60,000 # €0,000 $ - $ 47,671 $ 24,971 $ (22,700) J. N. Pew Vice Pres. 60,000 60,000 60,000 - 47,671 24,971 (22,700) J. Edgar Pew Vice Pres. 60,000 60,000 80,400 20,400 47,671 28,495 (19,176) Arthur B. Pew, Jr. Vice Pres. 35,000 35,000 46,900 11,900 30,271 22,167 (8,104) Samuel B. Bokert Vice Pres. 68,300 68,300 68,300 - 52,582 26,495 (26,087) Frank Cross Sec. & Treas. 20,000 20,000 26,800 6,800 18,411 15,798 (2,613) F. 8. Reitsel Ass't. to Pres. 18,000 21,600 28,944 10,944 16,701 16,589 (112) Walter C. Pew Gen'l Sales Mgr. 21,000 21,000 39,450 18,450 19,251 20,135 884 P. H. Harrison Reg. Sales Mgr. 17,500 20,000 26,800 9,300 16,266 15,798 (468) J. C. Welliver Public Relations 25,000 25,000 25,000 - 22,511 15,096 (7,415) C. H. Thayer Chief Engineer 15,000 18,000 28,644 13,644 14,076 16,483 2,407 W. D. Mason Refinery Mgr. 20,000 21,600 28,944 8,944 18,411 16,591 (1,820) John G. Pew Management Comm. 15,000 20,000 26,800 11,800 14,076 16,798 1,722 Robert W. Pack General Mgr. 15,000 20,000 26,800 11,800 14,076 15,798 1,722 Thomas L. Foster Chief Counsel 25,000 25,000 25,000 - 22,511 15,098 (7,416) Totals 474,800 495,500 598,782 123,982 402,156 290,281 (111,875) Remarks: There are 27 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $413,969. Date are shown only for officers with salary of $26,000 and over for 1941. 194 Regraded Unclassified UNITED AIRCRAFT CORPORATION : : : ; Salary after Federal : : Salary : Increase : income taxes : : : in amount : : :Changes Name of Executive : Title : : : : of salary : 1939 : 1941 :between : : 1939 : 1940 : 1941 : in 1941 : : :1939 and : : : : : over 1939 : : :1941 P. B. Rentschler Ch. of Board $ 24,050 $ 47,583 $ 73,550 $ 49,500 $ 21,751 $ 27,343 $ 5,592 1. E. Wilson President 48,490 51,640 73,920 25,430 40,089 27,402 (12,687) J. F. McCarthy Secretary 42,460 41,233 58.740 16,230 35.808 24,205 (11,145) Raycroft Walsh Vice Pres. 40.750 39.123 56,450 15,700 34.576 24,205 (10,371) F. 5. Burnham Gen. Acct. 12,250 14,167 19,042 6,792 11,624 12,495 871 C. L. Gault Treasurer 18,125 21,500 22,500 4,375 16,810 14,035 ( 2,775) Total 186,125 215,246 304,202 118,077 160,658 130,143 (30,515) Remarke: There is one additional officer with salary of over $10,000 for 1941, but salary is not reported for 1939 and 1940. 195 Regraded Unclassified WESTERN CARTRIDGE COMPANY # : : Increase : Salary after Federal = : Salary = in amount : income taxes Name of Executive : Title : = of salary : : % Changes = : = = 1 : in 1941 : 1939 : 1941 : between = : 1939 = 1940 = 1941 $ over 1939 : : # 1939 and : = : : $ : $ : 1941 J. M. Olin Vice Pres. $ 25,000 $ 25,000 $ 125,000 $ 100,000 $ 22,511 $ 33,565 $ 11,054 S. T. Olin Sec. Treas. 5,000 15,000 100,000 95,000 4,920 31,035 26,115 E. W. Taft Asst.Treas. 15,000 30,000 50,000 35,000 14,076 22,855 8,779 E. Pugsley Asst,Secy. 14,500 27,000 36,000 21,500 13,636 18,975 5,339 L. M. Peterson Asst.Treas. 9,000 15,000 19,000 10,000 8,671 12,475 3,804 R. C. Swanton Asst.Secy. 9,000 16,000 24,000 15,000 8,671 14,650 5,979 R. R. Casteel Asst,Secy. 8,000 14,000 16,000 8,000 7,752 10,990 3,238 Total 85,500 142,000 370,000 284,500 80,237 144,545 64,308 Estimated by corporation. Remarks: The salary of F. W. Olin, President, is omitted, as only the 1941 salary of $150,000 is available (1939 and 1940 salaries are omitted). 196 Regraded Unclassified WESTERN PIPE AND STEEL COMPANY I # = : Salary after Federal 1 # Salary A Increase I income taxes # 1 . in amount: 2. SChanges Name of Executive I Title I 1939 I 1940 . 1941 1 of salary: 1939 a 1941 between - : I & - in 1941 E 1 :1939 and I I I I : over 1939, I .1941 H. H. Tallerday Pres. $ 27,000 $ 27,000 # 40,500 # 13,500 $ 24,091 $ 16,335 8 (7,756) T. G. Aldenhagen Vice-PresSec&Tr. 16,600 15,800 24,380 8,880 15,895 16,968 ( 4566) R. D. Plageman Vice-Pres. 18,000 18,000 27,000 9,000 16,701 15,820 ( 881) L. N. Slater Vice-Pres. 18,000 18,000 27,000 9,000 16,701 15,820 ( 881) Total 79,500 79,500 119,250 39,750 72,889 62,917 (9,972) Remarks, 2 additional assistant vice-presidents have a salary of $10,000 and over for 1941, but no salary is reported for these for 1939 and 1940. The total salary reseived by these 2 additional officers for 1941 is $31,500. 197 Regraded Undass WESTINGHOUSE ELECTRIC AND MANUFACTURING COMPANY = # : Increase = Salary after Federal = : Salary : : income taxes in amount # = Name of Executive Title : of salary : = : Changea = : : : = = : between 1939 in 1941 1939 1941 : $ : 1940 : 1941 : = 14 over 1939 : 1939 and 2 : : = : $ = 1941 A. W. Robertson Ch. of Brd. $ 137,431 $ 164,625 $ 180,645 $ 43,214 $ 81,830 $ 39,129 $ (42,701) F. A. Merrick Vice a 51,356 56,139 54,531 3,175 42,067 23,821 (18,246) Geo. H. Bucher President 97,772 118,443 130,783 33,011 66,617 34,144 (32,473) Ralph Kelly Vice Pres. 47,788 54,800 59,133 11,345 39,604 24,742 (14,862) Wm. P. Marshall Vice Pres. 45,808 54,438 57,321 11,513 38,218 24,379 (13,839) Roscoe Scybold V.P.& Comp. 46,908 55,638 58,621 11,713 38,998 24,639 (14,359) Harold Smith Vice Pres. 42,724 51,475 55,133 12,409 35,997 23,942 (12,055) Total 469,787 555,558 596,167 126,380 343,331 194,796 (148,535) Remarks: Data are shown only for officers with salary of $50,000 and over for 1941. There are 13 additional officers with salary of $10,000 and under $50,000. The total of these salaries is $358,312. 198 Regraded Unclassified WESTINGHOUSE ELECTRIC ELEVATOR COMPANY I $ # = Salary after Federal # # Salary Increase 1 income taxes I # ,in amount = 1 changes Name of Executive # Title a 1989 I 1940 I 1941 10f salary = 1959 # 1941 :between # # = I sin 1941 = = $1939 and I # # 3 :over 1939 # = ,1941 Frank C. Reed President $ 55,005 $ $8,106 $ 34,723 $ 1,718 $ 28,745 $ 18,566 $ (10,179) Remarks: There are no additional officers with salary of $10,000 and over for 1941. 199 Regraded Unclassifica 200 FRELIMINARY M income before and after Income and profits taxes for aviected companied, 1939, 1940 and 1941 (Amounts in thousands) Irt. income before income : let income after Issues and profite taxes and profite taxes 1/ in of computy I I 1941 NO. - I , 1939 1940 Present I 1989 1940 Proposed 1941 reter estes 1 (LAbma Dry Dock & Shipbuilding Co. $ 457 $ 779 I 1,497 $ 577 5 684 660 2 American Car and Foundry Co. (2,465) (655) 4,725 (2,405) (655) 1,574 5 American Engineering Co. 286 656 1,184 258 450 496 274 4 American Lecomotive Co, (768) 2,259 9,650 (768) 1,764 6,2.50 4,449 5 American Woolen Co. 2,585 5,657 21,516 2,159 2,764 10,059 6,247 € Aviation Corp. (68) 12 1,144 (68) 10 941 9 Balderin [comptive Works 552 1,057 4,968 519 1,019 3,812 2,91.8 it Bath Iron Works 71 2,501 7,554 57 1,757 4,957 5,256 9 Beech Aircraft Corp. (91) 120 1,007 (91) 108 512 10 Bell Aircraft Corp. 10 641 11,180 9 452 3,368 1,451 11 Bendix Aviation Corp. 1,037 9,975 36,492 988 6,816 17,814 12 Bethlebem Steel Corp. 85,954 64,912 143,225 20,683 47,444 63,170 57,955 13 Boeing Aircraft Co. (1,621) (1,684) (1,681) (1,484) 14 Chryaler Corp. 44,597 68,433 64,185 37,508 46,420 68,218 24,461 15 Consolidated Aircraft Corp. 1,801 1,755 27,268 1,461 1,518 8,188 3,586 10 Consolidated Steel Corp. (calif.) 189 161 1,879 158 125 995 17 Consolidated Steel Corp. (Texas) (21)6 16 (21)6/ 10 Continental Motore Corp. (240) 665 5,399 (240) 555 19 Cramp Shipbuilding Go. 483 299 195 20 Curties Wright Corp. 5,819 26,028 5,322 14,661 81 Dismond T Motor Car Co. 361 515 4,105 299 R40 1,419 701 22 Douglas Aircraft Co., Inc. 4,586 14,059 40,127 4,760 11,466 19,408 25 E. I. du Font de Nemours & Ce. 110,218 145,010 210,000 96,876 105,005 109,000 76,061 24 Electric Boads Co. 3,935 5,024 4,112 2,951 2,118 2,652 R5 Ford Motor Co. 22,225 26,738 16,161 19,267 20,941 11,276 7,494 26 General Klectric Co. 56,490 102,316 47,745 96,978 27 General Machinery Corp. 866 1,585 5,925 711 960 2,004 985 28 General Motors Corp. 266,831 347,250 517,748 230,177 R35,566 240,508 142,869 20 Olenn L. Martin Co. 5,745 8,512 12,408 4,644 5,516 5,723 3,265 50 Orgaman Aircraft Engineering Do, 1,148 2,455 2,192 926 1,422 1,118 661 51 Oulf Shipbuilding Corp. (2) 189 (R) 181 86 82 Bouston Shipbuilding Corp. 54 55 83 Ingalls Shipbuilding Corp. (14) 511 1,007 (14) 588 500 290 54 Lockheed Aircraft Corp. 3,987 5,149 29,941 8,115 8,444 9,726 4,555 55 Los Angeles Shipbuilding & Dry Dock Co. 174 173 778 142 128 EST 351 86 Moore Dry Dock Co. (7) 625 2,701 (7) 469 1,231 884 87 Newport News Shipbuilding 4 Dry Dock Go. 3,926 10,274 15,495 5,225 7,929 6,864 se New York Shipbuilding Corp. 2,928 4,249 3,800 2,220 2,405 1,946 1,162 BM North American Aviation, Inc. 9,048 0,899 15,573 7,437 7,092 6,799 a 5,457 a 40 Northern Pamp Do. 344 576 1,756 279 222 641 42 Packard Motor Car Co. 1,366 1,142 4,289 1,144 904 2,954 1,920 42 Republic Aviation Corp. (595) 1,194 1,241 (595) 1,042 611 352 48 Bobine Dry Dock and Repair Co. S6 1,182 5,304 48 856 1,825 Ball 44 Savage Arms Corp. 466 2,057 15,436 581 1,233 4,621 2,024 45 Seattle Takona Shipbuilding Corp. 1,008 see BOS 501 46 Sperry Oyroscope Co., Inc. 4,601 12,918 25,752 5,881 6,925 8,066 4,420 47 Standard 011 Co. (N. J.) 126,968 202,145 117,075 161,853 166,118 4d. Studebaker Corp. 2,947 2,854 5,127 2,445 1,789 2,225 1,254 48 Bun 011 Co. 4,262 4,418 4,157 4,399 30 United Aircraft Corp. 11,795 55,651 88,025 5,919 17,684 28,067 18,498 61 United States Steel Corp. 76,529 85,547 254,091 65,596 59,740 146,217 70,824 52 Western Cartridge Co. 6,442 12,195 5,125 6,678 55 Wastern Pipe and Steel Co. (Calif.) 53 376 1,692 20 278 425 54 Weetinghouse Electric & Mfg. Co. 16,453 27,165 60,871 15,817 19,051 27,771 16,308 55 Westinghouse Electric Elevator Co. 951 845 SS7 795 641 555 549 Treasury Department, Division of Tax Research April 22, 1962 Source: Data supplied by Collectors of Internal REVENUE - ( ) Indicates loss. Not available. Loss of lass than $500. 1940 income tax rates applicable. Net income as reported not on 4 strictly comparable basis between companies. 5/ Fiscal year returns. &/ 9 menths. Changes to fiscal year tasis September 30, 1940. 11 sonths, 5/ 8 months, Camged to flooal year basis ingust 81, 1940. 6/ 7 months, Incorporated January 19, 1540. 1/ 10 months, 8/ 9 souths, 9/ 6 months. Chinged to fiscal year basis June so, 1940. Regraded Unclassified PRELIMINARY 201 Calculated tax liability under present (1941) rates and under proposed 1942 rates, on the basis of 1941 income, (or selected companies (Amounta in thousands) 1941 net 1 Excess profits credit I Excess profits tax I Hormal and surtax 1 Total tax Effective I , income, : (Fate of I I before 105 - 1 T I : * : I tax under I : I 1941 I 1 Name of company come and Amount Method 1 1941 : Proposed : 1941 t Proposed 1 Proposed Percentage proposed Number usber I I profits = = rates : rates I rates - rates : rates - rates 1 increase tax I I : taxes : I 1 : : # = I : American Engineering Co. 1,134 a 358 Income $ 420 $ 556 $ 219 $ 524 4 686 $ 860 34.72 75.78 1 9,650 5,250 Inv. Cap. 1,531 1,926 1,969 3,277 5,500 5,202 48,63 55.91 2 American Locomotive Co. American woolen Do. 21,516 11,269 Inv. Cap. 6,099 7,635 4,779 7,654 10,878 16,269 40.37 70,96 5 : Baldwin Loconotive Co. 4,966 7,446 Inv. Cap. - - 1,154 2,048 1,154 2,048 77.42 41,24 4 & 2,299 258 509 2,158 5,790 2,596 4,099 71.05 55.74 5 Bath Iron Works 7,354 Income à sell Aircraft Corp. 11,150 849 Inv. Cap. 6,194 7,754 1,569 1,925 7,763 9,679 24.69 86.96 6 a Bethlebem Steel Corp. 143,225 45,512 Inv. Cap. 55,565 69,468 24,490 35,804 80,055 105,272 31.50 75.50 7 7 16,369 27,716 25,965 39,722 62.99 61.89 8 Chryaler Corp. 64,183 46,253 Income 9,596 12,006 8 Consolidated Aircraft Corp. 2 27,288 - 15,400 19,262 5,700 4,441 19,100 23,702 24.10 66.66 9 9 433 676 Inv. Cap. 154 258 154 258 77.42 54.90 10 a Crasp Shipbuilding Co. 619 808 2,687 5,404 26.69 82.91 11 Diamond T Motor Car Co. 4,106 536 Income 2,068 2,595 Il E.I. duPont de Nemours & Co. 210,000 - 68,400 85,512 32,600 48,427 101,000 135,959 32.61 63.78 12 12 16,161 42,551 Inv. Cap. - - 4,885 8,657 4,685 8,667 77.42 53.68 15 15 Ford Metor Co. 5,919 4,958 25.99 65,56 14 General Machinery Corp. 5,923 711 Income 5,054 5,829 B65 1,109 14 is General Motors Corp. 517,748 220,087 Income 175,614 219,779 101,331 155,500 277,145 375,379 55.44 72.50 15 (Benn La Martin Co. 12,409 5,468 Income 4,115 5,155 2,571 5,989 6,686 9,144 36.77 75.59 16 18 69.86 17 2,192 1,112 Income 597 745 492 766 1,079 1,551 41.90 17 Grusan Aircraft Engineering Corp. 18 Dulf Shipbuilding Curp. 216 Inv. Cap. 58 105 58 105 77,42 54.45 18 189 - I Ingalla Shipbuilding Corp. 1,007 - 232 564 224 553 507 717 41,57 71.24 19 19 & Locklieed Aircraft Corp. 29,941 3,449 Income 15,846 19,819 4,369 5,567 20,216 25,386 25.58 84.79 20 21. Los Angeles Shipbuilding & 778 1,118 Inv. Cap. - - 241 427 241 427 77.42 54,94 21 Dry Dock Corp. 359 1,068 1,347 351 470 1,419 1,817 27.98 67,26 22 22 Modre Dry Dock Co. 2,701 Inv. Cap. 25 New York Shipbuilding Co. 3,800 5/- - 995 1,255 860 1,585 1,855 2,638 42.21 69.42 25 24 North American Aviation, Inc. 5 15,575 8,011 Income 5,192 6,502 3,582 5,634 8,774 12,136 38,52 77.95 24 2,509 1,355 2,569 77.42 56.22 25 25 4,289 4,100 Inv. Cap. = - Packard Motor Car Co. 1,335 26 Republic Aviation Corp. 1,241 695 Inv. Cap. 324 416 306 492 650 909 44,21 75.22 26 27 Robbins Dry Dock & Repair Co. 5,804 615 Inv. Cap. 2,653 5,328 826 1,095 5,479 4,423 27.11 83.38 27 24.02 86,89 26 BI 15,456 801 Inv. Cap. 8,756 10,951 2,079 2,451 10,615 15,412 Savage Area Corp, 2) Sperry Qyroscope, Inc. 25,752 4,321 Income 12,781 15,988 4,006 5,344 16,787 21,352 27.07 82,64 29 Standard 011 Co. of New Jersey 202,145 70,282 Inv. Cap. - 20,505 56,025 20,505 36,025 77.42 17.82 50 53 - 51 5,128 8,044 Inv. Cap. 1,902 2,389 999 1,505 2,902 8,894 54.22 75.94 31 Studebaker Corp. 52 11,497 12,676 Inv. Cap. - - 2,330 4,154 2,350 4,184 77.42 55,96 32 Sun 011 Co. 11,453 Income 43,339 54,185 12,520 16,247 55,858 70,452 26,09 85.92 55 53 United Aircraft Corp. 83,925 254,871 222,128 Inv. Cap. - - 87,954 156,047 87,954 156,047 77,42 66.44 54 34 United States Steel Corp. 301 Inv. Cap. 681 908 280 571 961 1,280 53.19 80,39 55 35 Western Pipe & Steel Co. 1,592 111 249 426 355 538 61.69 77,59 56 36 Westinghouse Elec. Elev . Co. 667 850 Income 84 37 Westinghouse Elec.z Mfg. Do. 68,571 18,800 Income 29,000 36,262 11,800 16,942 40,800 55,203 50.40 50,59 April 22, 1942 Treasury Department, Division of Tax Research Source: 1941 income data supplied by Collectors of Internal Revenue. Including credit carry-over. For 11 sonths For 9 months, Not available Regraded Unclassified 202 Humber and requirement. = an $10,000 = are, the reparations, paid me = - name If final par IM 1947 242 280 IME 2 2 - - et : 355 4 II I II 16 as Dr. - : IS M y A 2% THE R a R A Ell "ME E A to 2% if - R DE TX E HG de * A H A R % 197 4 IN H a A A 1,65 1,30 / ** if a 26 15. on 9 16 ,,,10 20 ST B IS 46 - D. I 4) in 15 in 80. Date: ne De 22 22 is 65 Da. Inc. 85 54 Drin 4 - Da. 15 12. ans De. 20 ...76 90 40 limited De 22. in n 20 CEPT - / B: 25 446 65 12 114 18 SEPLE Ca. If 17. cert N I 4 E H Der 10 18 su Date a EX in is Date Ce 12 32 65. Registrate 35 as 7.7 11 3 $ 45 ? 19 22 2 28 50 a II R $ a II. 14 X 5x 75 Regraded Unclassified TREASURY DEPARTMENT 203 INTER OFFICE COMMUNICATION DATE April 22, 1942. TO Secretary Morgenthau FROM W. N. Thompson Mrs. Roosevelt decided that since the author of the anonymous letter could not be located, she would not ask for anyone to come to the White House. Instead she had her secretary call Mr. Hall and ask that he send her a statement showing the conditions which prevail in the cafeteria. Attached is a copy of Mr. Hall's letter to Mrs. Frece together with a copy of the statement requested. 7ml Regraded Unclassified 204 April 22, 1942. Mrs. Prudence Frece, The White House. Dear Mrs. Frece: I have talked with the members of the Board of Governors of the Bureau of Engraving and Printing Restau- rant Association concerning the anonymous letter addressed to Mrs. Roosevelt, part of which you read to me over the telephone. The members of the board deeply regret that Mrs. Roosevelt was 80 addressed. They have been unable to ascertain the name of the writer of the letter. In compliance with your request I am enclosing a statement showing the conditions which prevail in the cafeteria at the present time. If any further information is needed, I shall be happy to furnish it. Yours very truly, A. W. Hall Director AWH/els Regraded Unclassified 205 BUREAU OF ENGRAVING AND PRINTING RESTAURANT ASSOCIATION. April 21, 1942. A Resume of Present Conditions The Bureau of Engraving and Printing Restaurant Associ- tion is a non-profit, cooperative association, owned and operated by the employees of the Bureau of Engraving and Printing. All permanent employees of the Bureau of Engraving and Printing, without regard to race, color or creed, are entitled to membership in the Association during the period of their employment, and-are entitled to vote and are eligible to hold office without payment of initiation fees or dues. Each year the Association elects B. President, Vice-President, Secretary, Treasurer, and three Governors. These officers constitute the Board of Governors, the controlling body of the Association. In addition to the Board of Governors, there is an Advisory Committee which 18 comprised of employees representing the various operating divisions of the bureau. Each division is entitled Regraded Unclassified 206 - 2 - to elect one representative to the Advisory Committee. Each division having more than two hundred employees is entitled to elect an additional representative for each additional two hundred employees or fraction thereof in excess of an even multiple of two hundred, The lunch room or cafeteria is situated on the fifth floor of the main building of the bureau, It is modernly equipped in all respects. There are four counter lines, and it has a seating capacity for seven hundred persons. The Bureau of Engraving and Printing at the present time employs 7,500 persons, of which number 30% are colored. About 2,000 of the employees are engaged on the afternoon shift. Owing to the limited scating capacity, the luncheon period 1a spread over a period of two hours, starting at 11 A.M. Prior to the present controversy, counter line No. 1 was used by nale white and colored; counter line No. 2 was used by male, white and colored, and an overflow of female, white and colored; counter lines Nos, 3 and 4 were used exclusively by female, white and colored. Regraded Unclassified 207 - 3 - While no rule vas ever promulgated, it had been the custom, since the inception of the cafeteria of the bureau, for the colored to occupy the end zones of the dining room, Where was no definite line of demarcation. Commencing last October a small number of colored girls moved into the area previously used by white girls. A controversy ensued. About the middle of January, 1942, colored girls moved into counter line No. 1, which heretofore vas used by male, white and colored. This intensified the controversy. It has been stated by white employees that colored girls will go through line No. 1, and each girl take a separate table, which, owing to the limited seating capacity, would force white men to sit at the table with them. This the white employees refuse to do. Regraded Unclassified 208 - 4 - The white employees further refuse to occupy the same area with the colored employees, as the result of which a large number of white employees do not patronize the cafeteria. The reduction in patronage has made it necessary to close down line No. 3. The white employees have circulated a petition requesting that the procedure which was in vogue prior to the controversy be resumed. The petition vas presented to the Board of Governors. The colored and white are engaged in practically the same kind of work. Following the incident which occurred during October, 1941, when a number of colored girls noved into the white area, a letter was received from Mr. Lawrence W. Cramer, Executive Secretary of the President's Committee on Fair Employment Practice, dated November 26, 1941, quoting an affidavit filed with the committee by Miss Melva K. Stuart. This affidavit alleged that Miss Stuart was discriminated against in connection with her employment as 8 printer's assistant. Regraded Unclassified 209 - 5 - Again on December 24, 1941, Mr. Cramer addressed the Bureau of Engraving and Printing. stating that if the allegations made by Miss Stuart are correct, the policy of the restaurant makes invidious distinction between employees of the bureau solely on the basis of race, He further stated that it W&B his considered opinion that the various agencies of the Federal Government must, under Executive Order 8802, effectively eliminate employment policies based upon racial theories which we are fighting abroad. He also asked what steps had been taken to effectuate the provisions of Executive Order 8802; also a statement as to the particular steps that had been taken in connection with the case presented by Miss Stuart's complaint. In the early part of January, 1942, Mr. Cramer called at the bureau to discuss the case under consideration. During the course of the discussion with Mr. Cramer, he pointed out the necessity for discontinuing the custom of having colored employees sitting in one end of the room and the white in the other. He pointed out that this was a violation of the policy Regraded Unclassified - 6 - 210 laid down by the President in Executive Order 8802. Mr. Cramer was advised that every effort would be made to comply with the President's policy, and the management of the cafeteria would be so advised. On January 12, 1942, Mr. Cramer addressed a letter to Dean Leon A. Ranson of the Howard University Law School, advising him that the necessary stops had been taken by the bureau to comply with the terms of Executive Order 5802 in the conduct of the cafeteria maintained by the Bureau of Engraving and Printing Restaurant Associ- ation which has been authorized to use space in the public building in which the activities of the bureau are carried on. A copy of Mr. Cramer's letter was furnished the Bureau of Engraving and Printing. Several days after Mr. Cramer's letter was dispatched to Dean Ranson, colored girls moved into counter line No. 1, which heretofore had been reserved for male white and colored. White male employees filed serious objections to this procedure. Regraded Unclassified - 7 - 211 Mr. Gerard Swope, Assistant to the Secretary, called in Dr. Mordecai Johnson, President of Howard University, for the purpose of discussing the racial differences in an endeavor to find a remedy for the situation. Doctor Johnson, accompanied by Mr. Spingarn of the legal staff of the department, visited the bureau, but neither was able to bring about a satisfactory adjustment. At a meeting yesterday afternoon in the Treasury Department, one of the members of the Board of Governors said that white employees were not boycotting the cafeteria, but staying away in order to avoid a race riot. He said that colored employees made insulting remarks about white people, and many were afraid that this would bring about physical combat. Another member of the board stated that male colored employees assumed an offensive attitude toward white female employees on the elevators. There have been several reports on this, but the persons guilty of the offense have not been apprehended. Regraded Unclassified 212 - 8 - Prior to October, 1941. no racial antagonism was in evidence among employees of the bureau in face of the fact that the employees are closely associated in their work and almost one out of three employees is colored. In a letter dated April 24 1942, addressed to the Secretary of the Treasury by the National Negro Congress, reference was made to "reports concerning potential and actual inter-racial friction among employees of the Bureau of Engraving and Printing." The controversy which developed in the cafeteria has now spread to every work-room in the bureau and has a marked effect in lowering the morale of the entire personnel. Many employees fear the outbreak of BL race riot. The white employees of the bureau are pressing for the re-establishment of the old procedure - that is, the colored employees filling up the dining room from the ends of the room. Regraded Unclassified - 9 - 213 & suggestion vas made that in order to avoid a. race riot the cafeteria be closed and that only box lunches be sold, which would require employees to take the lunches to their work-room where they would eat it. Another suggestion was submitted calling for the setting aside of line No. 4 for colored, male and female, employees, employ- ing colored girls behind the counter line, and a colored assistant manager to manage the affairs of that part of the cafeteria. Another suggestion was submitted which provided for the reserving of line No. 1 for white men; line No. 2 for white women; line No. 3 for colored women, and line No. 4 for colored men. At & conference with a group of thirty-five colored employees it vas ascertained that the colored would oppose any program in the cafeteria leading to the separation of races and sexes. Regraded Unclassified