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Howell, John S. (2)
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Records of the White House Office of the Deputy Chief of Staff (Reagan Administration)
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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 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ 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 MR. AND MRS. J. A. GOOCH MR. AND MRS. NORVELL L. SMITH MR. AND MRS. RICE TILLEY MR. AND MRS. ROBERT KLABZUBA MR. AND MRS. GORDON FITZGERALD MR. AND MRS. PRESTON M. GEREN, SR. MR. AND MRS. JOHN S. HOWELL MR. AND MRS. ARCH ROWAN MR. AND MRS. JAMES S. GARVEY MR. AND MRS. J. A. JUNGE DR. AND MRS. CHARLES E. PUGH DR. AND MRS. JACK EIDSON, WEATHERFORD MR. AND MRS. WILLIAM HORAN MR. AND MRS. DONALD NAPIER, HOUSTON MR. AND MRS. R. E. (JEB) STUART MR. AND MRS. STANLEY NEELEY, DALLAS MR. AND MRS. PETER O'DONNELL, DALLAS DR. AND MRS. S. E. SMITH, WOLFE CITY DR. AND MRS. FRED REHFELDT MR. CHARLTON LYONS, SHREVEPORT, LA. MR. W. A. MONCRIEF MR. AND MRS. JOHN LEEDOM, DALLAS DR. AND MRS. ROGER W. WITT ARE YOU CLINGING TO PRIMITIVE INSTRUMENTATION? Meet dector Your Howell Instruments, Inc. Friends Precision Instrumentation to Measure and Record: at Temperature Thrust RPM Weight Voltage Pressure ColonialCafeterias 1523 PENNSYLVANIA HOWELL ACROSS FROM WESTCHESTER HOUSE 2600 W. BERRY 4025 E. BELKNAP ACROSS FROM COX'S COX'S CENTER 3479 WEST VICKERY BLVD, FORT WORTH, TEXAS AND 801 EAST PARK ROW IN ARLINGTON TELEPHONE ED 6-7411 CONTACT Electronics INCORPORATED JEB STUART RANCHES FORT WORTH and PARIS, TEXAS 2403 FARRINGTON DALLAS, TEXAS 75207 Dallas: ME 1-9530 Fort Worth: CR 5-6561 TWX 214-631-4993 FACTORY AUTHORIZED JOBBER AND DISTRIBUTOR OF: ELECTRICAL CONNECTORS Bendix Continental Cinch Amphenol Gremar SEMI CONDUCTORS Transitron Honeywell General Micro- General Instrument Clevite electronics Inc. Corporation OTHER PRODUCTS Finest Quarter Horses - Now Featuring Tex Cap Electra Penn Tube Replacement Bradford Heifers - - New Ranch Ucinite Weckesser Zippertubing Allied Control Garlock Arrow-Hart Co., Inc. 20 Mi. N.E. of Paris - Show Horses Kulka CONTACT-Your Distributor For These Product Lines. Ft. Worth Office: Stuart Bldg., ED6-8848 Stocked in Depth for Immediate Delivery. 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- NO Document Description 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 FOIA HOWELL, JOHN S. (2) F97-0066/19 COHEN, D Box Number 46 109 DOC Document Type No of Doc Date Restric- NO Document Description 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- NO Document Description 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.