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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: Deaver, Michael
Folder Title: Howell, John S. (2)
Box: 44
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visit: https://reaganlibrary.gov/archives/digital-library
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WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name DEAVER, MICHAEL: FILES
Withdrawer
KDB
8/16/2011
File Folder
HOWELL, JOHN S. (2)
FOIA
F97-0066/19
Box Number
46
COHEN, D
109
DOC Doc Type
Document Description
No of Doc Date Restrictions
NO
Pages
1
REPORT
RE HOWELL
2
8/1/1983
B6
2
FORM
RE HOWELL
1
11/29/1982 B6
3
LETTER
TO HOWELL
1
7/11/1983
B6
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
8/83
JOHN S. HOWELL
CORPORATION RESUME
1950
-
While working as a Tool Designer at Convair, Fort Worth,
Texas, was assigned to develop a tool for testing the
temperature system on the jet engines that powered the
Convair B-36 Bombers.
-
This led to the development of the U. S. Air Force and
worldwide "JETCAL R11 tester.
1951
-
Howell left Convair in January after obtaining the license
to use the Convair heat application patented device as part
of the JETCAL.
-
Howell perfected the device for practical use and received
Patent # 2,854,844 for inventing the heater probe, used in
the tester, while working in his garage.
-
With a $10,000 investment of his father-in-law, William T.
Bradbury, formed B & H Instrument Company for the manufacture
of the tester.
1954
-
Organized first subsidiary, Howell Instruments Company, for
the manufacture of two newly invented products, the "TAPOT R11
and Galvanometer.
1957
-
Organized second subsidiary, Howell Instruments of Puerto
Rico, to manufacture own products in Puerto Rico.
1959
-
Howell invented the "Hot Section Analyzer", Patent # 3,237,448,
an airborne recorder to monitor jet engine damage and jet
engine life. A breakthrough in jet engine life monitoring.
1961
-
Went public with its stock and reorganized corporation under
the name of "Howell Instruments, Inc."
1964
-
Purchased majority of stock of A. Betzel Engineering,
Arlington, Texas, and formed "The Hutson Corporation",
a wholly owned subsidiary of "Howell Instruments, Inc.".
1969
-
Howell Instruments, Inc. divested itself of assets of Hutson
Corporation.
1971
-
Purchased Lewis and Lambert.
1973
-
Purchased General Steel
1977
-
Purchased Childs Construction.
Corporation Resume
Page 2
1977
-
Made public offering and repurchased outstanding shares
and went private. Formed umbrella organization "Howell
Management, Inc.'
Howell Instruments and its predecessor, B & H Instruments, Inc., for the past
30 years have been in the forefront of jet engine maintenance with a number
of firsts to its credit. In 1950 they invented the world famous JETCAL
tester, a by-word in the industry, and followed with its ancillary line of
testers. Since the early 1950's thousands of testers have been sold and
have been or are currently being used on practically every jet engine in
the world's inventory.
In the later 1950's Howell invented the "TAPOT" (Tape Potentiometer) which
produced the first digital indicator to measure temperature and RPM in both
ground test and cockpit indicators. All current digital engine cockpit
instruments manufactured for present day jets are either Howell Instrument
indicators of copies thereof.
In 1959 Howell invented the principle of the Hot Section Analyzer which is
the basis of many jet engine monitors now flying on jet aircraft.
Howell has also penetrated the jet engine test cell market with its PATTS R
(Programmable Automatic Test and Trim System) and AEDATS (Automatic Engine
Data and Trim System) and is the first company to provide the jet engine
industry with a programmed system to test jet engines in the test cell.
Howell has never taken nor accepted money for research and development from
any governmental agency. It has always used its own retained earnings for
this purpose.
Howell also very rarely bids on the manufacture of products other than its
own design and development. The normal procedure at Howell is to search
the industry for new product requirements then engineer, design, develop and
manufacture its own products offering this product to its customers for sale.
Over the years sales at Howell have regularly increased from the first yearly
sales of approximately $350,000 to the latest annual sales volume of approxi-
mately $20,000,000.
Although the patented "TAPOT", a Howell invention, provided the basis for
its high accuracy instrumentation that gave the line maintenance personal
laboratory precision for use in the tough environment of the flight line,
its other two inventions, the JETCAL and Hot Section Analyzer, were the
most dramatic in cost savings and pilots' lives.
The analysis by Dr. Self, industrial consultant and economics professor at
TCU, showed that the cost savings to the Air Force and industry of the
JETCAL tester alone, over a ten year average, saved over 1.25 million
dollars per year over the cost of purchase, which equates to 1.25 billion
dollars for the ten year average.
The same report equates the Hot Section Analyzer with approximately the same
1.25 billion dollar savings over cost for a ten year period, but official
Navy records show that a minimum of some 42 pilots' lives have been saved
that can be directly attributed to the use of the Hot Section Analyzer.
44
REPORT
DUN & BRADSTREET, INC.
ES
HOWELL INSTRUMENTS OF P.R. INC.
MFRS. BLSC. INSTRUMENTS HATO REY. P.R.
263 Carpenter Rd.
(D2)
246
SN:
MAY 7, 1959
Information received from Fort Worth, Texas indicates the following antecedent
information:
John S. Howell born 1920 in Michigan and is married. Graduated University of Michigan
June, 1948 with degree in engineering. Employed Abilene, Texas as engineer for Vaden
Engineering Co. manufacturer of heavy refrigeration equipment. Resigned July , 1949
and became employed by Consolidated-Vult ee Aircraft Corp., manufacturers at Fort Worth,
as tool designer. How 11 had been experimenting with jet engine testing equipment in
his spare time and perfected a Lest instrument. He resigned his position with Consolida-
ted to start B. H. Instrument Co. Inc., Fort Worth, Texas.
Barbara Howell is the wife of John S. Howell and is not active in the business.
George 2. MaGown, Jr, is a W 11 known attorney and isnot active in the business, except
in an advisory capacity.
B. & H. Instrument Co. Inc is located at 3479 West Vickery Bldv. Dort Worth, Texas.
Started Jan. 1951 as partnership between John Howell and William Bradbury; subsequently
succeeded by corporation Feb. 13, 1951. Manufactures air-craft equipment. Tangible net-
worth at Nov. 30, 1958 was $523,039 with overall condition well balanced.
RELATED CONCERNS: Howell Instruments Co. Inc. located at Fort Borth, Texas, engaged
as manufacturer of certain electrical components, relating to temperature measuring
equipment for aircraft with output almost entirely to B, & H. Instrument Co. Accounts
are settled at vatious intervals depending on working capital requirements of earh
concern. John S. Howell is President and owns 84% of the stock. It was chartered on
Nov. 30, 1954, present authorized capital stock $100,000, outstanding capital stock
$50,000 and tangible networth Nov. 30, 1958 was $102,734 and total debt $100,912.
Howco. Inc., Fort Worth, chartered Texas laws Aug. 8, 1955 for $5,000, John S. Howell
is President and controlling stockholder. Owns building and land occupied by
B. & H. Instrument Co. Inc., and Howell Instrument Co. Inc., on a lease arrangement.
Financial statemnt not available.
MGS ing
PLEASE NOTE WHETHER NAME, BUSINESS AND STREET ADDRESS CORRESPOND WITH YOUR INQUIRY.
The foregoing report is furnished, at your request, under your Subscription Contract in STRICT CONFIDENCE, by DUN & BRADSTREET, Inc. as your agents and
employees, for your exclusive use as an aid in determining the adv isability of granting credit or insurance, and for no other purpose. 12A-20 (09376)
to making tough, on-the-spot decisions
to outwitting
competition with great regularity. They thrive on chal-
lenges such as these.
But when they find themselves making too many
Father in-Law's $10,000
"expedient" decisions
spending too much time on the
road soothing clients, selling prospects, solving branch
problems
spreading themselves too thin between office,
Ten years ago John S. Howell de-
were approved by the Air Force,
home and travel to enjoy a balance of work and rest
parted the University of Michi-
and he was led to expect a con-
they simply quit.
gan with a brand-new B.S. de-
tract for about 100 testers. But in
gree in engineering, a wife and
August, 1951, after buying $40,-
When money won't hold them, what will?
two babies, and $16. Today he
000 worth of components, he had
Time - that's usually the answer. Give them
is president and major stockhold-
to stop: the contract had not come
enough time to let them do right by their jobs and their
er of four corporations that have
through. When it finally arrived,
a combined net worth of $650,-
in November, Howell quickly bor-
families.
000, annual sales of $4 million,
rowed $25,000 from a bank and,
But how? As hundreds of other companies have
and net profits of about 10
"from then on," he says, "we
per cent. Howell achieved all
never looked back."
discovered, the answer is often this simple-and economi-
this with an instrument used to
A few years later Howell and
cal: a company airplane for your top men.
ground-test the exhaust gases
his staff invented a new type of
One of the finest and most practical is the Cessna
of airplane jet engines and to de-
potentiometer, a device that
tect overheating in any part of
measures small electrical signals,
310: a twin-engine airplane with executive accommoda-
the plane.
and is used to ground-test air-
tions for five, relaxing luxury seats, a newly developed
Soon after Howell got out of
plane rpm, exhaust-gas temper-
muffling system that mutes engine sounds, and many
college he went to work for Con-
ature, de-icing and fire-warning
vair's tool department at Fort
systems. Virtually all U.S. air-
other features to make it a comfortable "office in the sky."
Worth. For its jet engines Con-
lines and the Navy and Air Force
Fast-its 220-m.p.h. cruising speed shrinks two- and
vair needed some way of testing
use the Howell potentiometer.
three-day trips into hours. Economical, easy to maintain-
exhaust-gas temperature in or-
Of Howell's four companies,
der to analyze engine perform-
B. & H. Instrument is worth
the beautiful Cessna 310 is known as the world's best all-
ance. As the only engineer in the
$500,000; Howell Instrument Co.
around light twin.
tool department, Howell was as-
$100,000; Howell Instruments of
signed to produce an instrument
Puerto Rico $25,000. The fourth
Wouldn't it be worth your time to contact your
that would do this. After six
is a leasing corporation that lends
Cessna dealer, today? His "Value Per Mile" analysis will
months he turned out a function-
equipment to the first three.
give you a quick and accurate evaluation of your com-
ing tester, but it was not entirely
Components are expensive; in-
satisfactory. After six months
ventory usually runs close to
pany's travel costs and needs. And, if you wish, look at
of spare-time work he developed
$300,000. "The idea," says How-
all seven great Cessna models-one for every business
a satisfactory product.
ell, "is to get the stuff in, get it
need. Your Cessna dealer is listed in the Yellow Pages of
Howell got a promise of a
built into our product, and out
$10,000 loan from his father-in-
the door before the bill comes in."
your phone book. Or write: Cessna Aircraft Company,
law, William T. Bradbury, per-
So far he has kept the product
Dept. FMP-2, Wichita, Kansas.
suaded Convair (which had filed
moving out the door so fast that,
a prior patent application for a
aside from profits retained, no
somewhat similar tester) to give
new money has been put in the
him an exclusive license to make
business beyond the original
the instruments. He built three
$10,000 borrowed from his father-
CESSNA AIRCRAFT COMPANY
prototypes and a pilot model that
in-law.
136
FORTUNE December 1958
PICTURES of the products of a Fort Worth plant that are going places. Manufactured at B&H Instru-
ment Company, the Jetcal Analyzer tests aircralt jet engines. B&H products are shown in photo
top left. That's Chief Engineer Roger E. Robertson talking over an engineering matter with his staff.
B&H INSTRUMENT COMPANY
Young Man With an Idea
Makes Jet Flying Safer
As you streak through the sky in
Worth provides the business climate
one of the sleek new jet airliners to
to make such achievement possible.
begin commercial service late this
Certainly that's the belief of the 200
year-you likely can thank a rela-
employees who received cash bonuses
tively new Fort Worth company for
and shares of the company's profits
the safety and smoothness of your
totaling 30 per cent of their annual
flight.
salaries in 1957.
That is 71/2-year-old B&H Instru-
Mr. Howell's leadership has at-
ment Co., Inc., which has grown from
tracted some of the nation's outstand-
nothing in 1951 to approximately 200
ing engineers to his staff as they have
employees and over three million
recognized the opportunity for per-
dollars in sales in 1957. The com-
sonal gain and advancement.
pany's business is development of
A B&H instrument which will bene-
new and better electronic instruments
fit jet airliners and their passengers
John S. Howell
to meet massive and expanding needs
is one already proved in worldwide
B&H President
in the automation age of industry
use by the United States armed forces
and defense.
and NATO. It's the unique Jetcal
could fly up to 300 miles farther on
The B&H story springs from an
analyzer. developed and made only
the same fuel supply-when engines
idea of one man-John S. Howell.
by B&H--a rugged precision instru-
were adjusted in accord with Jetcal
president and general manager-who
ment for field use in pre-flight test-
test indications.
founded the company when he was
ing of jet engines.
Mr. Howell grew up in Rochester,
only 31.
The Navy's famed precision-flying
Mich., and before World War II he
The company's rapid growth and
team. the Blue Angels, found that
attended the University of Arizona
success is further evidence that Fort
their planes were more efficient-
Turn to Page 46
USING the analyzer to test the exhaust gas temperature of α Boeing B-52 jet engine are Carswell air-
men T/Sgts. Charles C. Hawley and Donald R. Pettke. A view of α section of the company's engi-
neering department which is doing things in a big way.
B&H INSTRUMENT CO.
Fort Worth attorney. Mr. McGown
is vice-president and treasurer, and
B&H INSTRUMENT
Mrs. Howell is secretary of the com-
pany.
Starts on Pagge 17
B&H's first year, 1951, was strictly
for three years. His major study was
organization and development. There
physics, and he also took pilot train-
was a loss, no sales. In 1952 sales
ing. After World War II Air Force
were $350,000, and annual sales in
service he enrolled at the University
the five years since have increased
of Michigan and was graduated (B.
10-fold-to more than three million
S., mechanical engineering) in June,
dollars in 1957.
1948. In mid-1949 he came to Con-
Other key figures in B&H manage-
vair's Fort Worth plant as a tool de-
ment include these department heads:
signer.
Leon Becker, sales manager; (Mr.)
During leisure time he used his ga-
Claire Bell, plant manager; Johnny
rage as a workshop and developed
Pipes, business manager; Roger Rob-
the Jetcal analyzer. More than 3,000
ertson, chief engineer.
Jetcals have been furnished to the Air
B&H's owners formed the Howell
Force, Navy, Army, NATO, airlines,
Instrument Company in 1954. This
and all the major aircraft and engine
company develops and manufactures
manufacturers. (Jetcals are used by
products which are used as compo-
Convair and Carswell Air Force
nents of B&H products and are sold
Base.) Mr. Howell left Convair in
also to other users. For instance,
January, 1951, having obtained li-
Howell provides an instrument used
cense to use a Convair heat-applica-
in firing the Matador missile
tion device in a commercial product.
and an engine temperature indicator
The B&H Instrument Company was
for the new Lockheed Electra prop-
formed by Mr. Howell in partnership
jet airliner. As new products are de-
with William Bradbury of Marshall,
signed, new equipment and proce-
his father-in-law. In February, 1951,
dures must be designed to produce
they and Guy S. Tribble of Dallas
them.
incorporated the company.
The companion companies-B&H
Mr. Bradbury and Mr. Tribble sub-
and Howell Instrument-are housed
sequently sold their interests. Present
in a masonry main building and an
stockholders are Mr. Howell, his wife,
adjoining metal-sheathed structure
the former Barbara Bradbury of Cle-
for bulk fabrication and storage; the
burne, and George Q. McGown Jr.,
two total 18,000 square feet, on a
21/2-acre site at 3479 West Vickery
Blvd.
The B&H owners, in summer 1957,
incorporated Howell Instruments of
Puerto Rico-as a result of the com-
monwealth's intensive "Operation
Bootstrap" to add manufacturing in-
dustry to what has been a dominant-
ly agricultural economy. Still a small
operation in San Juan, the Howell
plant (4,000 square feet of leased
space) makes certain components for
products made by the two companies
in Fort Worth.
B&H has sales-engineering offices
in New York, Dayton and Los An-
geles and an agent in Tokyo. In
England, Bryans Airoquipment, Ltd.,
Surrey, is a licensed manufacturer
of the Jetcal analyzer.
John Stinson Howell, today 38,
and his wife have four children—
Marian, 13; Susan, 9; Johnny, 4,
and Bill, 3. Mr. Howell is a member
of the American Society of Mechan-
ical Engineers, the Society of Auto-
motive Engineers, Tau Beta Pi and
Phi Kappa Phi, scholarship frater-
nities; Colonial Country Club and
Petroleum Club of Fort Worth. The
family lives at 4420 Stadium Drive,
Fort Worth.
FORT WORTH
June, 1958
COST/BENEFIT STUDY
OF
MILITARY AIRCRAFT EQUIPMENT
PRODUCED BY
HOWELL INSTRUMENTS, INC.
OF
FORT WORTH, TEXAS
1952-1978
BY
STANLEY ALLEN SELF, Ph.D., ECONOMIST
2922 Sandage Avenue
Fort Worth, Texas
April, 1979
Stainly April Stanley 30, Allen Allen 1979 Self Soof
TABLE OF CONTENTS
SECTION
SUBJECT
PAGE
1.
SUMMARY OF FINDINGS
1
2.
INTRODUCTION
2
3.
ANALYTICAL PROCEDURE
3
4.
THEORETICAL BASIS OF STUDY
4
5.
PRODUCT COST/BENEFIT
6
6.
JETCAL: PRODUCT FAMILY ONE
8
7.
HOT SECTION ANALYZER: PRODUCT FAMILY TWO
12
8.
INDICATORS: PRODUCT FAMILY THREE
17
9.
TRIM TESTERS: PRODUCT FAMILY FOUR
19
10.
SUMMARY
22
11.
APPENDIX A - VITA - DR. STANLEY ALLEN SELF
23
B - HOWELL INSTRUMENTS, INC.
CATALOG
24
i
SECTION 3
ANALYTICAL PROCEDURES
First step in any such study as this, in my opinion,
is product familiarization. This required that I personally
visit the manufacturing facilities and see the products under
study. My personal inspection tour was accomplished during
the afternoon of March 5, 1979. At that time, too, I secured
the product catalog attached as Appendix C.
As a licensed private pilot and a former military officer,
I was already reasonably familiar with aircraft instruments and
engine maintenance. Also, as a former consultant to General
Dynamics at its Fort Worth aircraft manufacturing facility, I
was familiar with many of the problems of military aircraft design,
manufacturing, maintenance, and operation.
Having taught economics, management, and production
management for over thirty years at both the undergraduate and
graduate university levels, I was able to recognize the manu-
facturing and engineering methods used at Howell Instruments,
Inc., particularly with respect to high-technology applications
in sophisticated military equipment.
Under the circumstances, I did not consider it necessary
that I examine the products in use in the field, since usage
procedures are well established in each product family group
and are no longer experimental in nature.
Data collection extended into company sources, unclassified
military reports and correspondence, transcripts of taped inter-
views with uniformed and civilian military aircraft maintenance
officials, and general library bibliographical materials.
SECTION 4
THEORETICAL BASES OF STUDY
In the early stages of the study, it became clear that
certain elements would be unique and challenging. Although I
have often been involved in estimates of future costs and benefits,
I have never encountered a retrospective study such as this. Con-
sequently, it was necessary to adapt and extend economic methods
generally used in future-oriented studies of 1 military cost analysis,
such as those pioneered by RAND Corporation.
A basic deçision was to use a familiar theoretical model:
Cost/benefit analysis. In this model, the cost of an application
is estimated, usually from relatively hard financial data. The
focus here is typically upon incremental costs; that is, those
additional costs associated with the introduction of a new product.
Benefits in this model may be calculated in a number of
applicable forms, and the choice of methods to be used should re-
late closely to the decision criteria. Often, the benefits consist
of estimated savings that the user may harvest as a result of an
investment in capital equipment.
Numerous examples of cost/benefit analysis exist in the ex-
perience of public and private organizations in the U. S. and
abroad. In the military, all weapons systems are now routinely
analyzed using this method. In private industry, all large capital
expenditures are analyzed this way, particularly in capital budget-
ing.
The method is not always precise. While high standards should
go into the study, they should not be so high as to be self-defeating.
Typically, the economist or systems analyst must do enough. cross-
checking to convince himself that, in all probability, he has the
correct facts. This I have done.
1. Examples may be found in E. S. Quade, Analysis for Military
Decisions (Chicago: Rand McNally & Co.) 1964, and Charles J. Hitch
and Roland N. McKean, The Economics of Defense in the Nuclear Age
(Santa Monica: Rand Corp.) 1960.
SECTION 5
PRODUCT COST/BENEFIT
Analysis of costs and benefits associated with military
equipment may be fraught with technical difficulties, but reasonable
estimates are required in a variety of decision-making situations.
In this study, we attempt to quantify all elements--including some
not usually quantified--in order to provide a reasonable basis for
assessing the net value of Howell Instruments Products to their
U. S. Military users.
The approach used here is to analyze costs and benefits
associated with each of four product family groups. These groups
include, through time, a variety of specific, individual product
models. Each product group reflects, therefore, many product im-
provements as technology has advanced over the 27-year period under
study.
Costs are based upon shipping documents at Howell
Instruments that show the value of shipments to the U. S. Military
of each product family. These data more accurately reflect the
actual initial military usage of instrumented equipment, moreso
than any other available data series, such as sales data or produc-
tion data.
When the shipments are added together for an entire
calendar year, the resulting total becomes the primary cost data for
that year. Of course, use of discrete year-end totals to describe
a continuous flow of costs and benefits may not be completely precise,
but it is both conservative in its results and useful in application.
Conservative results occur because of the time lag between a
midyear average datum point and a year-end datum point.
All the product costs considered here are usually called
investment costs in military cost analysis. In this study, we
confine investment costs to product costs only, since these are
the only incremental costs that are relevant to the analysis. This
approach does not consider, therefore, certain costs that usually
accompany investment costs, such as training in use of equipment,
repair, and maintenance. The assumption underlying incremental
cost analysis is that these operational costs would be necessary
in any event.
6.
SECTION 6
JETCAL: PRODUCT FAMILY ONE
Jetcal is essentially a device for checking the calibration
of cockpit indicators of jet engine temperatures. In use, the
device applies a known-temperature heat source to sensors in the
engine. If cockpit indicators agree with the heat-source tempera-
tures, engine operators (pilot or ground crew) can then be assured
of reliable data for use in flight or in ground test-pad adjustment
("trimming"). On the other hand, if the cockpit indicator registers
"wrong," then the temperature-sensing system is adjusted, repaired,
or replaced. This simple explanation is in stark contrast to the
complexity of the Jetcal's design and manufacturing.
Key to the usefulness and value of the Jetcal is the critica-
lity of exhaust gas temperature in a jet engine. Maximum designed
performance requires maximum operating temperature. If the pilot
receives false data from the cockpit indicators, his aircraft may
under-perform by, for example, crashing on takeoff. If excessive
temperatures actually occur while the cockpit indicators show only
"normal" temperatures, the engine may fail by "burning." Thus,
engine temperature gauges must be accurate to ensure safe, effective
performance.
Since 1952, Jetcals have been the mainstay of Howell Instruments
production and sales. For the entire 27-year period, Jetcals have
constituted about five-eighths of total shipments to the U. S. Mili-
tary, in terms of constant 1978 dollars. The Jetcal's useful life
is estimated to be about 20 years.
Costs to the military have been about $60 million, with pur-
chases averaging about $2.25 million per year.
Our estimate is that about 1,000 Jetcals are still in military
service. Usage of 1,000 Jetcals forms the basis for estimating
current dollar savings in operating costs in the following equation.
Number of inspections per day is estimated to be 4 per Jetcal. Work-
ing days per year are 260. Each Jetcal inspection is estimated to
save 5 man-hours of labor at $25 per hour that would otherwise be
necessary to calibrate indicators by the next-best alternative method..
a
TABLE I
HOWELL JETCAL SHIPMENTS TO UNITED STATES
MILITARY UNITS, ADJUSTED FOR INFLATION,
1952-1978
(In Thousands of Dollars)
1978=100
GNP IMPLICIT
CONSTANT VALUE
YEAR
CURRENT VALUE
PRICE DEFLATOR
(1978=100)
1952
$
382
35.2
$ 1,085
1953
474
35.7
1,328
1954
1,376
36.2
3,801
1955
1,458
37.0
3,941
1956
1,953
38.2
5,113
1957
3,166
39.5
8,015
1958
2,789
40.1
6,955
1959
3,888
41.0
9,483
1960
4,599
41.7
11,029
1961
4,050
42.0
9,643
1962
1,500
42.8
3,505
1963
1,228
43.4
2,829
1964
1,388
44.1
3,147
1965
1,565
45.1
3,470
1966
1,781
46.6
3,822
1967
2,200
47.9
4,593
1968
1,750
50.1
3,493
1969
1,250
52.6
2,376
1970
1,570
55.4
2,834
10.
Table 1 Continued
1978=100
GNP IMPLICIT
CONSTANT VALUE
YEAR
CURRENT VALUE
PRICE DEFLATOR
(1978=100)
1971
2,288
58.3
3,925
1972
2,052
60.7
3,381
1973
1,725
64.2
2,687
1974
3,512
70.4
4,989
1975
3,591
77.2
4,652
1976
4,750
81.2
5,850
1977
4,800
90.7ª
5,292
1978
4,178
100.0°
4,178
TOTALS
$ 65,263
$ 125,416
NOTE: Gross National Product Implicit Price Deflator series
is taken from U. S. Department of Commerce, Survey of Business
Statistics, 1977, in which 1972=100. Converted statistically
to 1978=100 by Dr. Allen Self.
afficial statistics not yet available; estimated by
Dr. Allen Self by linking linearly with Consumer Price Index.
11.
SECTION 7
HOWELL HOT SECTION ANALYZERS: PRODUCT FAMILY TWO
The Howell Hot Section Analyzer (HSA) is an aircraft-mounted
instrument that measures the total debilitating effect of excessive
operating temperatures on a jet engine. In more general terms,
the device is sometimes called an integrating time-temperature
recorder.
Key element in the device's usefulness is its ability to
measure, indirectly, the amount of metallic "creep" in part dimen-
sions that occurs when an engine is over-stressed by excessive heat.
Irreversible creep continues as a function of time and temperature,
with "damage" doubling with each +18°C of excessive operating
temperature.
By digital integration, the HSA records the deterioration
of the engine. This alerts the ground crew to potential hot sec-
tion distress. If the engine is not deteriorating, then the
tear-down inspection interval can be extended, thereby saving un-
necessary tear-down inspections. If the HSA forecasts hot section
distress, the engine can be replaced immediately, thereby avoiding
tragic loss of aircraft and flight crew.
In addition to this principal function, the Howell HSA provides:
1. An accurate (+2°C) engine temperature indicator in
the cockpit.
2.
A warning light signaling excessive temperatures.
3.
A warning light if temperature spread between
hottest and coldest thermocouple is exceeded.
4.
Several other clocks, flags, and counters, that
establish the trend of engine condition.
Investment costs of the Howell HSA to the U. S. Military were
incurred mostly during the Viet Nam war years from 1965 through 1972,
when $9,759,000 in HSA shipments were delivered. In constant 1978
dollars, these shipments amounted to $19,224,000.
12.
Total investment costs from 1962 through 1978 were $12,453,000,
or $22,740,000 in 1978-value dollars.
Average yearly investment costs, in 1978 dollars, were
$1,337,647 for the entire 17-year period from 1962 through 1978.
Benefits include savings in investment costs of aircraft and
operating expenses of several kinds.
Investment cost savings were realized through two means:
(1) decreases in aircraft losses from hot section distress, and
(2) increases in flight hours realized.
Analytically, the Howell HSA cannot be credited with all of
the savings realized by the military following HSA installations.
Better maintenance procedures and components were simultaneously
being installed, the most significant being the Spectrometric Oil
Analysis Program (SOAP), which detects metallic fragments in lubri-
cating oil samples.
Data do not permit statistical allocation of these joint cost
savings by HSA and SOAP, but a reasonable estimate would credit
one-half to each.
Several anecdotal measures from combat reports aid the analyst
in estimating cost savings:
1.
In 1966, nine F-105's were lost from hot section distress.
After HSAs were installed, this cause was immediately
eliminated. Aircraft cost was $2,136,668 each.
2.
By May, 1968, engine removals as a result of HSA
readings numbered 49. These engines might have failed
in flight otherwise.
3.
HSA-equipped aircraft were compared with non-analyzer
equipped aircraft. For HSA-equipped aircraft, the
result was a 34 percent increase in flying hours and
a 73 percent decrease in replacement parts cost.
Operating time between inspections were 191 hours
vs 126 hours, a 52 percent improvement. HSA modi-
fication cost ($3,667 each) was only 22 percent of
savings realized during the first phased inspection
following modification. Savings were $16,668 in about
the first six months, or about $33,336 per year per
HSA. This is about nine times cost for first year
only.
13.
These and other data provide an indication of benefits.amount-
ing to about 10 times cost in subsequent years of normal operation.
About 3,000 HSAS are in use today.
Thus, operating cost savings are about 10 times $3,667 times
3,000 equals $110,010,000 per year.
Credit for SOAP will reduce investment cost savings attribu-
table to HSA by one-half, but the saving estimated is still quite
large:
1. Aircraft saved from loss due to hot section distress
each year, 1967-74, equals 9. Total for period
equals 72 at $2.1 million each equals $151,200,000
2.
Aircraft saved from loss due to hot section
distress each year, 1975-1978, equals 3.
Totals for period equals 12 at
$2.1 million each equals $
$ 25,200,000
3.
Pilots saved! assuming one-half of 84
aircraft losses would result in loss
of pilot:
42
Pilot value is estimated at cost of
initial training ($220,000) times a factor
of 5 for experience following initial
training, or $1,100,000 each (In 1964,
economist Dr. Stephen Enke of RAND
estimated pilot life value at $450,000 in
connection with F-111 cockpit capsule
development. In 1978 dollars, this would
be $1,020,408.)
Pilots lives saved: 42 times $1,100,000=$ 46,200,000
4. Total investment costs saved in F-105
squadrons since 1967 =
$222,600,000
5. Less 50 percent credit to SOAP
-111,300,000
6. HSA investment cost savings, F-105
$111,300,000
7. Divided by 144 aircraft =
$
772,917
8. Cost savings of $772,917 times 3,000
HSAs =
$257,638,888
14
In summary, HSA cost savings are:
A.
Operating Cost Savings
$110,010,000 times 10 years equals
$1,100,100,000
B.
Investment Cost Savings
257,638,888
C. Total
$1,357,738,888
Less Cost
22,740,000
D.
E.
Net Savings
$1,334,998,888
15.
TABLE 2
HOWELL HOT SECTION ANALYZERS SHIPPED
TO UNITED STATES MILITARY UNITS,
ADJUSTED FOR INFLATION, 1962-1978
(Thousands of Dollars)
1978=100
GNP IMPLICIT
CONSTANT VALUE
YEAR
CURRENT VALUE
PRICE DEFLATOR
(1978=100)
1962
$
62
42.8
$
145
1963
153
43.4
353
1964
8
44.1
18
1965
2,170
45.1
4,812
1966
1,326
46.6
2,845
1967
1,122
47.9
2,342
1968
313
50.1
625
1969
1,818
52.6
3,456
1970
800
55.4
1,444
1971
870
58.3
1,492
1972
1,340
60.7
2,208
1973
346
64.2
539
1974
270
70.4
384
1975
412
77.2
534
1976
80
81.2
98
1977
800
90.7
882
1978
563
100.0
563
TOTALS
$ 12,453
$ 22,740
16
SECTION 8
TEMPERATURE INDICATORS: PRODUCT FAMILY THREE
Temperature indicators utilize a "tape potentiometer"
that is highly accurate to +2°C. Indicator units also display
a red warning light for overtemperature conditions in the engine.
The unique aspect of the Howell indicators is their extreme
accuracy.
Since 1962, indicators shipped have cost the military
$27,880,000. About 25,000 units are estimated to be still in use,
with an estimated useful life of 10 years. In 1978 dollars,
shipments total $47,698,000.
In my opinion, these devices have a cost/benefit ratio of
one-third (1/3). No objective means of measuring the benefit
is available, unfortunately, since the device is a design-required
component. Competitive devices are available, of course, but they
are not as accurate. Inaccurate gauges can lead to undetected
overtemperature conditions in aircraft not equipped with HSA.
Operating cost savings for indicators over the period
of their production is therefore estimated at (3 times cost) - (cost)
,
or (2 times cost) =
$ 95,396,000
TABLE 3
HOWELL TEMPERATURE INDICATORS SHIPPED TO
UNITED STATES MILITARY UNITS, ADJUSTED
FOR INFLATION, 1962-1978
(Thousands of Dollars)
1978=100
GNP IMPLICIT
CONSTANT VALUE
YEAR
CURRENT VALUE
PRICE DEFLATOR
(1978=100)
1962
$ 1,100
42.8
$ 2,570
1963
900
43.4
2,074
1964
1,443
44.1
3,272
1965
1,567
45.1
3,475
1966
1,964
46.6
4,215
1967
1,982
47.9
4,138
1968
2,101
50.1
4,194
52.6
2,852
1969
1,500
1970
1,550
55.4
2,798
1971
1,389
58.3
2,383
1972
60.7
2,224
1,350
1973
1,353
64.2
2,107
1974
1,380
70.4
1,960
1975
77.2
1,886
1,456
1976
81.2
2,389
1,940
1977
2,500
90.7
2,756
1978
2,405
100.0
2,405
TOTALS
$ 27,880
$ 47,698
SECTION 9
TRIM TESTERS: PRODUCT FAMILY FOUR
Howell Trim Testers are the newest product family, having
been introduced in about 1970. The device records and analyzes
engine revolutions, fuel flow and exhaust gas temperatures overtime,
thereby allowing an engine to be properly trimmed on a test pad
or in a test cell.
These devices are noted for their accuracy and dependability,
but competitive devices are available.
Cost of shipments since 1970 to military users totals
$5,421,000. In 1978 dollars, this total is $6,993,000.
As in the case of indicators, the cost/benefit ratio for
this device is one-third (1/3). Therefore, I estimate total
cost savings associated with these devices at twice the 1978
cost or $13,986,000
19.
TABLE 4
HOWELL TRIM TESTERS SHIPPED TO
UNITED STATES MILITARY UNITS, ADJUSTED
FOR INFLATION, 1970-1978
(Thousands of Dollars)
1978=100
GNP IMPLICIT
CONSTANT VALUE
YEAR
CURRENT VALUE
PRICE DEFLATOR
(1978=100)
1970
$
333
55.4
$
601
1971
681
58.3
1,168
1972
280
60.7
461
1973
290
64.2
452
1974
207
70.4
294
1975
460
77.2
596
1976
750
81.2
924
1977
750
90.7
827
1978
1,670
100.0
1,670
$ 5,421
$ 6,993
TOTALS
TABLE 5
TOTAL 1978 VALUE OF HOWELL SHIPMENTS
TO UNITED STATES MILITARY UNITS, 1952-1978
PRODUCT
1978 VALUE
Jetcals
$125,416,000
Hot Section Analyzers
22,740,000
Temperature Indicators
47,698,000
Trim Testers
6,993,000
TOTAL
$202,847,000
SECTION 10
SUMMARY
The following table summarizes the results of my analysis
of cost savings.
TABLE 6
COST SAVINGS RESULTING FROM
MILITARY USE OF HOWELL PRODUCTS,
1952 - 1978
INVESTMENT
OPERATING
PRODUCT
COST SAVINGS
COST SAVINGS
TOTAL
1. Jetcal
-0-
$1,277,500,000
$1,277,500,000
2. Hot Section
Analyzer $234,898,888
1,100,100,000
1,334,998,888
3. Indicators
95,396,000
95,396,000
4. Trim Testers
13,986,000
13,986,000
TOTALS
$234,898,888
$2,486,982,000
$2,721,880,888
APPENDIX A
VITA
Dr. Stanley Allen Self has been Professor of Management at
the M. J. Neeley School of Business at Texas Christian University
since 1964. During that period, he has also served as Director
of the Bureau of Business Research and as Chairman of the Manage-
ment Department.
From 1957 to 1964, Dr. Self taught at North Texas State
University in Denton, Texas. He acted as Chairman of the Management
Division in 1963-64 and was one of the founders of the journal
North Texas Business Studies.
He was at the University of Oklahoma from 1954 to 1957. For
two years he was an instructor in the Economics Department; in his
third year, he received a Southern Fellowship from the Rockefeller
Fund for dissertation research in the economics of electric utility
systems.
His degrees include the Ph.D. in economics from the University
of Oklahoma in 1957, the M.A. in economics from North Texas State
University in 1949, and the B.A. in history and economics from
Texas A. and M. University in 1947.
Post-doctoral studies include summers at the Graduate School
of Business Administration at Harvard University in 1961 and at
the Graduate School of Industrial Administration at Carnegie-Mellon
University in 1963, both assignments under Ford Foundation grants.
He is co-author of Job Evaluation: Text and Cases, Third
Edition, published by Richard D. Irwin, Inc., in 1964. In 1962, he
edited Executive Operations Technique, published by Prentice-Hall.
He has also written a great number of business research reports.
Dr. Self is a licensed private pilot. He served as an Army
Artillery Officer during the Korean War and was honorably discharged
as a Captain after 11 years of reserve service.
8/83
JOHN S. HOWELL
REPUBLICAN PARTY RESUME
1952
-
Co-founder of modern Republican Party in Tarrant County,
Texas in a predominately Democratic majority state.
1952
-
Precinct, County and State Republican Delegate.
1960
-
Worked in Nixon Campaign and continued working to elect
John Tower in 1961.
1961-63
-
Served on Texas State Finance Committee.
1961-65
-
Key Republican (State).
1961
-
Founder and President of first Republican Club in Tarrant
County.
1962
-
Ran for Texas State Legislature on Republican ticket.
1964-66
-
Republican County Chairman. First popularly elected
County Chairman in Tarrant County.
1964
-
Computerized Republican voting records from Precinct level
on up -- perhaps the first county so computerized.
1965
-
Hosted "An Evening With Ronald Reagan" - filled the Will
Rogers Auditorium and raised a considerable sum for the
State and Local Republican Party.
On Retiring
-
Left Tarrant County with first large dollar surplus.
1968
-
Active in Draft-Reagan movement.
1976
-
Active in Reagan Campaign. Elected as an Alternate/
Delegate (one of four from state) At-Large to National
Convention, as a Delegate for Ronald Reagan at Kansas City.
1982-83
-
Republican Eagle.
*
* *
RONALD REAGAN
AM ovening wun
An Evening with
RONALD REAGAN
Z
WILL ROGERS COLISEUM
SUNDAY, JUNE 6, 1965
AN EVENING WITH
DINNER PROGRAM
6:30 p.m.
Master of Ceremonies
Hon. J. A. Gooch
Return of Thanks
Dr. John F. Elliott
Calvary Presbyterian Church
Recognition of Special and Out of Town Guests
John S. Howell
Tarrant County Republican Chairman
Evan Evans
Chairman, Texas Highschool TARS
Dinner
GENERAL PROGRAM
8:00 p.m.
Master of Ceremonies
Hon. J. A. Gooch
Invocation
Dr. James M. Moudy
Vice-Chancellor, Texas Christian University
National Anthem
Mrs. Henry Palmros
Pledge of Allegiance
Sung By Washington Heights Elementary School Chorus
Chorus
Washington Heights Elementary School
Directed by Miss Brenda Elms
Accompanied by Miss Marthe Frances Brown
Make America Proud of You
God Bless America
Recognition of Dignitaries
Mr. Gooch
Medley of Beloved Songs
Miss Gail Allen
Introduction of Speaker
Hon. Peter O'Donnell
Chairman, Texas Republican Party
Speaker of the Evening
RONALD REAGAN
Presentations to Speaker
Hon. Harris P. Hoover
City Councilman, Fort Worth
Lon Evans
Sheriff, Tarrant County
Mrs. Charles Bedford, United Fund
RONALD REAGAN DINNER
SPONSORS
DR. AND MRS. JOHN J. ANDUJAR
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WITHDRAWAL SHEET
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Collection Name
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DEAVER, MICHAEL: FILES
KDB 8/16/2011
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F97-0066/19
COHEN, D
Box Number
46
109
DOC Document Type
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pages
tions
1
REPORT
2 8/1/1983 B6
RE HOWELL
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
DEAVER, MICHAEL: FILES
KDB 8/16/2011
File Folder
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F97-0066/19
COHEN, D
Box Number
46
109
DOC Document Type
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pages
tions
2
FORM
1 11/29/1982 B6
RE HOWELL
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
DEAVER, MICHAEL: FILES
KDB 8/16/2011
File Folder
FOIA
HOWELL, JOHN S. (2)
F97-0066/19
COHEN, D
Box Number
46
109
DOC Document Type
No of Doc Date Restric-
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pages
tions
3
LETTER
1 7/11/1983 B6
TO HOWELL
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.