[Minutes of the Council of the Office of Production Management]
[From the U.S. Government Publishing Office, www.gpo.gov]

CIVILIAN PRODUCTION ADMINISTRATION BUREAU OF DEMOBILIZATION
MINUTES of the
Council of the Office of
Production Management
Historical Reports on War Administration :
Documentary Publication No. 2

CIVILIAN PRODUCTION ADMINISTRATION • John D. Small, Administrator
BUREAU OF DEMOBILIZATION G. Lyle Belsley, Director James W. Fesler, War Production Board Historian
MINUTES of the
Council of the Office of Production Management
December 21, 1940, to January 14, 1942
Historical Reports on War Administration	War Production Board
Documentary Publication No. 2
UNITED STATES GOVERNMENT PRINTING OFFICE • WASHINGTON : 1946
HISTORICAL REPORTS ON WAR ADMINISTRATION: WAR PRODUCTION BOARD
Documentary Publications Series
No. 1. Minutes of the Advisory Commission to the Council of National Defense
No. 2. Minutes of the Council of the Office of Production Management
No. 3. Minutes of the Supply Priorities and Allocations Board
No. 4. Minutes of the War Production Board
No. 5. Minutes of the Planning Committee of the War Production Board
ii
FOREWORD
On December 20, 1940, the President announced his intention to establish an Office of Production Management, and on January 7, 1941, he formally established the Office by Executive Order 8629 (which is reproduced in the appendix of this volume). For the succeeding year, the Office of Production Management was the central agency with responsibility for the production phase of national defense. During the year the powers and organization of the Office were altered by statute and executive order, notably through extension of the priority power, establishment of the Supply Priorities and Allocations Board, and establishment within the Office of Production Management of additional divisions, one responsible for civilian supply and the other responsible for contract distribution. On January 16, 1942, the President by Executive Order 9024 established the War Production Board and vested its chairman with supervisory authority over the Office of Production Management. On January 24, 1942, the President issued Executive Order 9040, abolishing the Office of Production Management and vesting its functions and powers in the Chairman of the War Production Board.
The Office of Production Management, according to the terms of Executive Order 8629, consisted of a Director General, an Associate Director General, the Secretary of War, and the Secretary of the Navy. In order to avoid confusion between this governing group and the administrative organization, the former came to be called the Council of the Office of Production Management. Throughout its life the Council consisted of William S. Knudsen, Director General; Sidney Hillman, Associate Director General; Henry L. Stimson, Secretary of War; and Frank Knox, Secretary of the Navy. Associated with the Council beginning on February 18, 1941, were John Lord O’Brian, General Counsel of the Office of Production Management, and Herbert Emmerich, Secretary (Executive Secretary after September 9, 1941) of the Office of Production Management.
The minutes of the Council of the Office of Production Management are now issued as the second of the series of documentary publications designed to provide a basic understanding of the historical development of the War Production Board and its predecessor agencies. It was President Roosevelt’s opinion, which President Truman recently reaffirmed, that “we need both for current use and for future reference a full and objective account of the way the Federal Government is carrying out its wartime duties.” This series, among others, represents an attempt to meet that need.
The meetings of the Council on December 21, 1940, and January 7, 1941, were held subsequent to the President’s announcement of his intention to establish an Office of Production Management, but prior to issuance of the Executive Order formally carrying out his intention. The minutes of these meetings are reproduced in the form in which they were prepared by William S. Knudsen, then the Director General designate. The minutes of the meetings of January 21 and 31, 1941, were prepared by Frederick M. Eaton, and are reproduced in the form in which they were prepared by him and approved by the Council. The minutes from February 18, 1941, to January 14, 1942, were prepared by Herbert Emmerich, Secretary of the Office of Production Management. They are reproduced here in the form in which they were prepared by him and approved by the Council.
Footnotes have been added to indicate briefly the content of documents referred to but not described in the minutes and to provide citations of Acts of Congress, Executive Orders, and regulations and administrative orders of the Office of Production Management. All documents referred to in the minutes are available in the files of the War Production Board, as are the original minutes. The texts of Executive Orders and of regulations of the Office of Production Management are also available in published form in the Federal Register.
The minutes were prepared for publication under the supervision of James W. Fesler, War Production Board Historian, by Henry E. Edmunds, Chief, and Samuel B. Marley, Jr., and Marie C. Stark, Archivists, Historical Records Section, Civilian Production Administration.
in

CONTENTS
Page
Foreword .............................................................  iii
Minutes of Meetings
December 21, 1940 ....................................................... 1
January 7, 1941.......................................................... 1
January 21, 1941......................................................... 1
January 31, 1941 ........................................................ 3
February 18, 1941........................................................ 5
February 28, 1941 ....................................................... 7
March 7, 1941 ........................................................... 8
March 17, 1941 .......................................................... 9
April 3, 1941 .......................................................... 12
April 29, 1941 ........................................................  13
May 6, 1941.......................................-..................... 17
May 13, 1941...........................................................  20
May 20, 1941 ........................................................... 22
May 29, 1941 ..........................................................  25
June 3, 1941............................................................ 28
June 10, 1941........................................................... 31
June 17, 1941 .......................................................... 32
June 24, 1941 .......................................................... 35
July 1, 1941 ........................................................... 36
July 8, 1941 ........................................................... 39
July 15, 1941 ........................................................   41
July 22, 1941 .......................................................... 43
July 29, 1941 .......................................................... 46
August 5, 1941 ......................................................... 48
August 12, 1941 ........................................................ 50
August 19, 1941 ........................................................ 51
August 26, 1941 ........................................................ 52
September 2, 1941 ...................................................... 55
September 9, 1941 ...................................................... 57
September 16, 1941...................................................... 58
September 23, 1941 ..................................................... 61
September 30, 1941 ..................................................... 62
October 7, 1941 ......................................................   63
October 14, 1941........................................................ 65
October 21, 1941.......................................................  68
October 28, 1941 ....................................................... 70
November 4, 1941........................................................ 72
November 12, 1941....................................................... 74
November 18, 1941....................................................... 75
November 25, 1941 ...................................................... 77
December 2, 1941 ....................................................... 79
December 15, 1941 ...................................................... 80
December 19, 1941 ...................................................... 82
January 7, 1942 ........................................................ 84
January 14, 1942 ....................................................... 86
Appendix: Executive Order 8629 ......................................... 89
Index................................................................... 91
V

MINUTES OF THE FIRST MEETING OF THE PRODUCTION MANAGEMENT BOARD
Held in the Office of the Secretary of War, 10 a.m., Saturday, December 21, 1940
Present: The Secretary of War; the Secretary of the Navy; William S. Knudsen, Director; Sidney Hillman, Associate Director.
1.	There will be no regular meetings of the Board, but the Secretaries of War and Navy indicated that they would be on call for such meetings as the Director and the Associate Director deem necessary.
2.	The Board agreed that the Secretary of the Board should be appointed by the Director.
3.	There will be no General Counsel of the Board.
4.	The Board agreed that production, priorities, and purchasing shall be under the Director and that labor shall be under the Associate Director.
5.	Major consideration was devoted to the question of materiel.
6.	The Secretary of the Navy agreed to prepare a statement covering the action of the meeting for the press and to submit same to the Director before issuance.
MINUTES OF THE MEETING OF MEMBERS-DESIGNATE OF THE OFFICE OF PRODUCTION MANAGEMENT, JANUARY 7, 1941
In connection with the Budget meeting held in Secretary Stimson’s Office on January 7th, the following points were dealt with by the Office of Production Management:
1.	A signed statement by the four members setting forth the aims and operations of the Office was delivered to Budget Director Smith for transmittal to the President.
2.	It was agreed that a poster according to sample furnished by Mr. Knudsen would be printed in a quantity of 10,000 and sent out with a letter. The poster to be unsigned and space left for signature for the management of the plant where it is to be placed.
3.	Consideration to be given to the suspension of all leaves in arsenals. It was agreed that this could be placed in effect by the service involved and pay offered in lieu of leave. In other words, if a man chooses to work through his leave, he would get his regular pay plus his accumulated leave pay.
4.	The proposal for the Army and the Navy to have a central office where change drawings and change orders are checked before applied to prints is supposedly now in effect but the Army was willing to have the Production Division study the system and see whether adequate protection for production was available.
5.	Coordinate all field offices with production, and Army and Navy inspection to be consolidated—it was agreed that in these two questions a study was to be made by the Production Division and recommendation made to the services involved.
6.	Mr. Hillman reported that the training program was proceeding very satisfactorily but that cooperation was required from industry to absorb the trainees as fast as they were available. Mr. Dooley will furnish information on the subject from which the Production Division can take action.
MINUTES OF THE MEETING OF THE OFFICE OF PRODUCTION MANAGEMENT
Held in the Office of the Director General, 10:30 a.m., Monday, January 21, 1941
The following members of the Office were present : The Director General, the Secretary of War and the Secretary of the Navy.
1.	The organization charts of the Office of Production Management (Doc. 1), the Division of Production (Doc. 2), the Division of Purchases (Doc. 3), the Division of Priorities (Doc. 4) and the Administrative Services (Doc. 5) were approved, subject to the following :
a.	The selection of legal personnel shall await the appointment of the General Counsel.
b.	The Under Secretary of War and the Under Secretary of the Navy shall be added to the Priorities Board as full members, subject to the approval of the President. The Director General was requested to make this recommendation to the President.
2.	The priorities procedure outlined in a memoran
1
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
dum of the Director of the Division of Priorities, dated January 10, 1941 (Doc. 6)1 was approved subject to the following:
a.	The requirement that the Labor and Price Consultants be “full-time” shall be eliminated.
b.	The understanding that Mr. Lubin is to be the Labor Consultant and that the Price Consultant is to be subject to the approval of the Office.
c.	The selection of the Assistant Director on Policy, inasmuch as he is to have charge of legal personnel for the Division shall be subject to the approval of the General Counsel.
3.	Memorandum regarding procedure and personnel of the Division of Purchases, dated January 17, 1941, was approved in the form attached (Doc. 7)2 subject to the approval of legal personnel by the General Counsel.
4.	The question of centralization of authority on construction of War Department projects was considered. Mr. Knudsen said that he was satisfied with the new procedure established by Secretary Stimson with respect to Ordnance projects in the Army. Secretary Stimson said that he would take the necessary steps to be certain that the same centralized procedure would govern the construction of the new airplane assembly plants.
5.	The appointment of John D. Biggers as Director of the Division of Production (Doc. 8), E. R. Stet-tinius as Director of the Division of Priorities (Doc. 9) and Donald M. Nelson as Director of the Division of Purchases (Doc. 10), which has been approved by the President was confirmed.
6.	Mr. Knudsen reported that Mr. Charles Palmer, the Coordinator of Defense Housing and Mr. Bane, head of the Division of State and Local Cooperation, have agreed on the following division of their respective responsibilities for supervision of the creation of new facilities called for by housing projects:
1 Memorandum, E. R. Stettinius, Jr., to W. S. Knudsen and Sidney Hillman, January 10, 1941.
The Director of Priorities requests approval by the Director General and Associate Director General of the attached organizational chart and list of personnel of the Division of Priorities and suggests that Army and Navy and National Defense Advisory Commission members not otherwise represented be invited to attend Priorities Board meetings; that he have a full-time Labor Consultant and Price Consultant; that he be. permitted to appoint, a deputy director to give full time to British priorities; that the Priority Committees of the commodity groups be advisory to the Operating Executives who report to the Assistant Director in charge of operations; that Priority Committees be limited to the five main groups with the Group Executive as permanent chairman and with permanent Army and Navy representation; and that if the volume of work increases subcommittees be appointed.
2 Memorandum. D. M. Nelson to W. S. Knudsen, January 17, 1941.
The Director of the Division of Purchases states the following basic principles which will govern the work of his Division: It will be the duty of the Division , to cooperate with the War and Navy Departments and with industry with respect to all national defense purchases. This operation will incude approval of contracts, and perhaps of subcontracts and review of specifications for commercial supplies. The War and Navy Departments will be responsible for determining total requirements, urgency of need, and specifications and for recommending source, quantity, price, and procedure.
Within the policy, the Director of Purchases, with the approval of the Service involved, will designate the proposals to purchase that will be submitted to his office for clearance and thereafter all contracts based on such proposals must be cleared through his office.
Finally, he requests approval of the attached list of personnel.
a.	Mr. Palmer will have complete charge of the supervision of the building of the houses and the storm and sanitary sewers, water supply and roads within the project.
b.	Mr. Bane will have charge of the supervision of the building of new schools and hospitals required by the project and the construction of roads and other facilities leading up to the project.
7.	The following disposition was made of matters which had been brought to Mr. Knudsen’s attention by certain of the State Governors:
a.	Action was deferred on the request of the Governors for a statement which could be used by them in connection with radio talks, and on their request for a further plea at this time for peace between management and labor.
b.	A separate department would be set up in the Division of Production to which all information could be sent and from which information could be obtained with respect to idle plant facilities and tools. The Secretary of War stated that he would ask the Under Secretary to take up with Mr. Knudsen the question of having the Trecker brothers of Milwaukee transferred to such new department.
8.	It was agreed that no general curtailment of automobile production for the first half of 1941 should be recommended, ^t was, however, agreed that all steel required for defense purposes (including structural steel necessary for new facilities) should take priority over all steel required for domestic pur-pos^s^
9.	Mr. Knudsen was requested to recommend to Mr. Jesse Jones the purchase of an additional 100,000 tons of Chilian copper.
10.	Mr. Knudsen was requested to recommend to Congress the enactment of a statute which would remove the duty on copper bought by any department or agency of the United States Government.
11.	Mr. Stimson was requested to ask Mr. John Lord O’Brien3 for a decision on his proposed appointment as General Counsel for the Office.
12.	It was agreed that Mr. Knudsen should make written request to the President to authorize the sale of tungsten presently held by the Procurement Division of the Treasury as provided in the attached letter (Doc. 11).4
3 Correct spelling: O’Brian.
4 Letter, W. S. Knudsen to the President, January 17, 1941.
The closing of the Burma Road has curtailed shipment of tungsten from China. _ Ninety percent of such tungsten is used in the manufacture of high-speed tool steel. Since the Procurement Division of the Treasury Department has a stockpile of some 5,000 tons and is expecting an additional shipment, part of which is consigned to the Metals Reserve Company, and since other shipments will be made from China, it is requested that the President issue an order, as he is authorized to do under Public Law 117, 76th Cong., 1st 'Sess., June 7, 1940, enabling Treasury Procurement to sell tungsten to industry upon the recommendation of the Office of Production Management.
2
JANUARY 21 AND 31, 1941
13.	The following matters were tabled to be taken up at the first meeting at which the Associate Director General is present:
a.	Contract clauses relating to labor provisions to be included in War and Navy Department contracts.
b.	Set scale for union initiation fees in connection with work on defense projects.
c.	Additional amounts to be paid for work on second shifts.
d.	Closed shop on Government contracts.
Frederick M. Eaton
Minutes Approved:
Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
MINUTES OF THE MEETING OF THE OFFICE OF PRODUCTION MANAGEMENT
Held in the Board Room of the Office, 3:30 p.m., Friday, January 31, 1941
The following members of the Office were present : The Director General, the Associate Director General, the Secretary of War and the Secretary of the Navy.
1.	The Minutes of the meeting of the Office held January 21, 1941, were approved.
2.	There was general discussion as to the retention of Mr. John Lord O’Brien5 as General Counsel for the Office.
3.	IVIr. Knudsen advised the Secretary of War and the Secretary of the Navy that at the suggestion of the two Under Secretaries the request to the President for their inclusion as Members of the Priorities Board had been held up. The Secretary of the Navy stated that he wished to discuss the matter further with the Under Secretary and that he might bring the matter up at the next meeting of the Office.
4.	Consideration was given to a letter from the Secretary of the Navy to Mr. Knudsen dated January 9, 1941, (Doc. I)6 with respect to transferring certain functions of the Army and Navy Munitions Board to the Division of Priorities of the Office. The Secretary of War stated that he wished to consider the matter further with members of his Department and asked that decision be withheld for the present. Consequently, action on the Circular of Information on Priorities (Doc. 2)7 was deferred.
5 Correct spelling: O’Brian.
8 Letter, Frank Knox to W. S. Knudsen, January 9, 1941.
The letter transmits a memorandum from Rear Admiral Samuel M. Robinson of the Bureau of Ships recommending the transfer to the Priorities Board of the Office of Production Management of all priorities functions heretofore handled by the Army and Navy Munitions Board. Secretary Knox agrees with the proposal and is communicating with Secretary of War Stimson to request that the War Department also support it.
7 Circular of Information on Priorities.
Priority Certificates are issued to show the relative importance of contracts made with a given prime contractor for national defense items, and are to be used only as a last recourse when all other means of relieving shortages or meeting deadlines on contracts have been found inadequate.
The Army and Navy Munitions Board will determine the relative importance of all military items as well as other items directly related to national defense ordered by the Maritime Commission, the Coast and Geodetic Survey, the Coast Guard, and the National Advisory Committee on Aeronautics.
The Priorities Division of the Office of Production Management will be responsible for all other priorities, except those on foreign defense
5.	Mr. Knudsen was authorized to transmit a letter in the form attached hereto (Doc. 3)8 to the Secretary of War and the Secretary of the Navy respectively, outlining the procedure with respect to clearance of contracts and the function of the Division of Purchases. The procedure and functions outlined in the attached letters were approved.
6.	The Office received a letter from Mr. John D. Biggers, dated January 23, 1941, (Doc. 4) acknowledging his appointment as Director of the Division of Production and pointing out his continuing relationship with the Libbey-Owens-Ford Glass Company. The Office recognized that in order to obtain the personnel necessary to the conduct of the duties and responsibilities of the Office, it was necessary and desirable and in the interest of National Defense that the personnel of the Office be permitted to continue their relations with their respective firms or corporations and to receive compensation therefrom during the period of their employment by the Office.
7.	Without endorsing the substance of Procure-
purchases, which wiil be taken up with the Priorities Division through the channel provided by the President’s Liaison Committee.
All Priority Certificates, however, will be issued or controlled by the Priorities Division which will be advised by the Priorities Board.
The Division will be divided into five groups: Minerals and Metals, Chemicals, Commercial Aircraft, Tools and Equipment, and General Products, each headed by a Group Executive. Each Group Executive will be advised by one or more committees, composed of the Executive as chairman, an Army and a Navy Representative, and industry members.
Priority Certificates on military items will bear the rating assigned by ANMB. Others will be assigned by the appropriate Group Executive, checked with the Purchases and Production Divisions for alternative solutions, and studied in the light of information available through the Bureau of Research and ¡Statistics. The decision reached will then be forwarded to the Director of Priorities through the Assistant Director in charge of operations, who will coordinate the decision with decisions of other Group Executives and will issue the necessary certificate.
8 Draft letter, W. S. Knudsen to H. L. Stimson and Frank Knox, January 31, 1941.
The letter cites Executive Order 8629, dated January 7, 1941; assigns to Donald M. Nelson as Director of the Purchases Division the duty, stated in Paragraph 2c of the Order, of executing and administering, subject to direction from the Director General and Associate Director General, the program of coordinating the placement of_ the major defense orders and contracts; and instructs the War and Navy Departments to clear all such contracts and orders through the Director of Purchases in accordance with a letter from the President to the Secretaries, dated June 6, . 1940. The Secretaries will work out. a definition of the term “major” and the Director of Purchases is instructed to seek the advice of the Director of Production when necessary.
3
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
ment Circular No. 43, dated December 4,1940, (Doc. 5)9 issued by the Chief of Staff, the Office approved the decision of the Secretary of War concurred in by Mr. Knudsen to withhold the award of contracts to bidders who accompanied any bid made on the basis of the circular with a refusal to abide by the conditions thereof.
8.	Consideration was given to the questions of
a.	whether War or Navy Department contracts negotiated or otherwise should be given to contractors against whom an order of the National Labor Relations Board was outstanding, but which had not been confirmed by the Courts or with respect to which an appeal was still pending, and
b.	whether War or Navy Department contracts should include a provision obligating the contractor to live up to the National Labor Relations Act10 and to decisions of the National Labor Relations Board.
No decision was reached with respect to these questions but it was agreed that an opinion should be requested from the Attorney General with respect thereto, such request to be circulated to the members 'of the Office before being sent.
9.	The question of whether extra compensation should be paid for second and third shift operations was referred to Mr. Hillman for his investigation and recommendation.
10.	The question was raised as to the necessity of building additional Navy plants such as Hudson, Westinghouse, Norden and Reynolds Metals, in view of existing privately owned facilities which might be used for the same purposes. The Secretary of the Navy stated that he would investigate this matter to determine the necessity of building additional plants of this character. In this same connection the Secretary of the Navy will investigate the necessity of the payment of separate fees to engineers, architects and contractors engaged in building these plants.
11.	Admiral Robinson’s memorandum to the Secretary of the Navy dated January 7, 1941 (Doc. 6)11 was considered. The following action was taken with respect to certain of the points raised thereby:
a.	Mr. Knudsen was requested to advise Mr. McReynolds, Secretary of the Advisory Commission, and Mr. Bane that it was the unanimous recommendation of the Office that Mr. Bane be transferred from the Advisory Commission to the Office, which would make him available to the individual Commissioners for such services as they might want him to perform.
b.	The Office would act as Coordinator of the activities of the War and Naw Departments and the Advisory Commission with respect to Tax Certification under Section 124 of the Second Revenue Act of 1940,12 under such procedure as Mr. Knudsen and Mr. Hillman establish.
c.	Mr. Knudsen will suggest to the appropriate Committees of Congress and to the Budget Office that any recommendations that might be required with respect to the use of expediting funds granted in future appropriation acts would be placed in the Office of Production Management rather than in the Advisory Commission.
12.	The letters from the Director of Priorities to the Office (Doc. 7, 8 and 9) with respect to additional personnel were received and the requests of the Director contained therein were approved.
13.	The letter of the Director of Priorities to the Director General and Associate Director General (Doc. 10)13 with respect to the priority to be granted English contracts was received and Mr. Knudsen’s action in approving the same was confirmed.
14.	The approval of the procedure outlined in the memorandum from the Director General dated January 31, 1941, (Doc. Il)14 with respect to the establishment in the Division of Production of a new section to be known as the Defense Contract Service was approved. Mr. Hillman stated that he might want to suggest for consideration the inclusion in the new section of Mr. Morris L. Cooke’s organization.
15.	The question of the administration of the provisions of the Lease-Lend Bill, H.R. 1776 was deferred.
9 The Procurement Circular provides that each invitation for bids on national defense contracts include the requirement that the statement of general principles and of labor policy adopted by the Advisory Commission to the Council of National Defense and approved by the President as stated in House Document 950, 76th Cong., 3rd Sess., September 13, 1940, be fulfilled as part of the contract.
10 Public Law 198, 74th Cong., 1st Sess., July 5, 1935.
11 Memorandum, Rear Admiral Samuel M. Robinson to Frank Knox, January 7, 1941.
The memorandum is an expression of views on how the Office of Production Management can best aid the defense program. Its function should be to handle those matters not now assigned to any one agency and to coordinate conflicting activities. Specifically, the Office should allocate priorities; aid in the development of supporting community facilities, such as housing, where segments of the population have been transferred; direct the formulation of legislation that affects several departments; handle all questions of raw materials and their supply; coordinate the manufacture of supplies of non-technical nature such as furniture, shoes, and clothing; give over-all direction to the location of new facilities; and direct contract placement.
4
12 Public Law 801, 76th Con., 3d Sess., October 8, 1940.
33 Letter, E. R. Stettinius, Jr., to W. S. Knudsen and Sidney Hillman, January 31, 1941.
Citing conflicts between foreign purchases of raw material and domestic business that is operating under preference ratings, the Director of Priorities requests permission to rate on a parity with comparable domestic defense contracts such foreign contracts for the production of war material as have been cleared with the President’s Liaison Committee.
14 Memorandum, W. S. Knudsen to the Council, January 31, 1941.
The memorandum transmits a proposed press release announcing the transfer of the Office of Small Business Activities from the Division of Purchases to the Division of Production. The organization is designated the “Defense Contract Service,” will be under the direction of Robert. L. Mehornay, will have as its field agents designated employees of the Federal Reserve -System, will expand its personnel to include business, financial, contract, and production engineers, and will handle subcontracting in such a way as to spread defense contracts to all available smaller enterprises.
JANUARY 31 AND FEBRUARY 18, 1941
16.	Mr. Knudsen presented the letter of Secretary Morgenthau dated January 30, 1941, (Doc. 12).15 It
15	Letter, Henry Morgenthau to W. S. Knudsen, January 30, 1941; memorandum, Rear Admiral R. R. Waesche to Henry Morgenthau, January 22, 1941.
Secretary Morgenthau transmits, a memorandum from Admiral Waesche, Commandant of the United States Coast Guard, complaining of possible bottlenecks and danger in the present method of handling high explosives during loading of ships for export. Admiral Waesche says that the ports of New Orleans and New York are used for most of this work. In view of the expected increased shipments other ports will have to be used. Because so few ports have the necessary combination of isolated wharfage, adequate railroad facilities, and deep water, the procedure necessary involves transfer of the explosives from railroad cars to barges and from the barges to ships anchored at some distance. ISuch double handling increases the danger. Admiral Waesche recommends that studies be begun immediately to discover and provide isolated wharfage for safe and expeditious handling of high explosives.
was referred to Mr. Ralph Budd for his recommendation.
Frederick M. Eaton
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
MINUTES OF THE MEETING OF THE OFFICE OF PRODUCTION MANAGEMENT
Held in the Board Room of the Office at Social Security Building, 11:00 a.m., Tuesday, February 18, 1941
The following members of the Office were present: The Director General, the Associate Director General, Under Secretary Robert P. Patterson (for the Secretary of War), Under Secretary James V. Forrestal (for the Secretary of the Navy).
There were also present Mr. Julius H. Amberg, Special Assistant to the Secretary of War; Mr. James D. Wise, Special Assistant to Mr. Forrestal.
1.	The Minutes of the Meeting of January 31.
The minutes of the meeting of the Office held January 31 were approved.
2.	New British Defense Program.
In reply to a question by the Director General as to the problem which will be presented to American industry on the passage of the Lend-Lease Bill (H.R. 1776) Under Secretary Patterson stated that conversations of a committee consisting of the Secretary of State, Treasury, War, and Navy and the Director of the Budget were under way on this subject and a tentative plan had been prepared. Under this plan, upon passage of the Lend-Lease Bill, appropriations will be requested to be made to the Army and Navy, together with a request for a special fund to the President. An Executive Order is in preparation providing for a committee of the Secretaries of State, Treasury, War, and Navy to act on orders from Great Britain and other foreign sources. This committee will have a full time executive to handle all contacts between foreign purchasing agencies and the United States Government. Purchasing will be through existing agencies of the Government, particularly through the Army and Navy, with the Office of Production Management servicing the foreign program as it is now doing the American program.
3.	New American Defense Program.
The Director General pointed out that the present program calls for complete equipment for 1,200,000
men and heavy equipment for 800,000 additional men. He requested that the War Department give consideration to the new American program required in addition to this estimate. He reported that he is trying to build a unified American industrial program for all production required in connection with the present authorizations (1941), future American authorizations (1942), and authorizations in connection with British and other foreign orders arising as a result of the anticipated passage of the Lend-Lease Bill. He specifically requested the War and Navy Departments to inform him whether the estimates for plant facilities for 4,000,000 men would hold for the new program and whether these estimates were sufficient to provide for the British program or whether the British program would be in addition to them. He pointed out the importance of early decisions on these points to permit the orderly planning of plant facilities and to obviate an unplanned duplicating construction program of plant facilities. As a result of these discussions it was agreed:
That it is the recommendation of the Office of Production Management that there shall be a single unified American Defense Production Program for the fiscal year 1942 and that this program should provide for all needs of the United States Army and Navy as well as for British and other foreign requirements.
4.	Canadian Liaison Matter.
In reply to a request received by Mr. Stettinius* office from Mayor Fiorello La Guardia of New York City, who is Chairman of the United States Section of the Permanent Joint Board on Defense between the two countries, it was agreed,
That the Office of Production Management approves the appointment upon passage of the “Lend-Lease” Bill of a liaison officer to cooperate with the Permanent Joint Board on Defense Between the United States and Canada.
5
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
5.	National Labor Relations Act.
Under Secretary Patterson called attention to the minutes of the meeting held January 31, page 2, paragraph 8, in which it was agreed that an opinion should be requested from the Attorney General with respect to application of the National Labor Relations Act and the decision of the National Labor Relations Board to War and Navy Department contracts. After discussion it was agreed,
That a committee consisting of Messrs. Isador Lubin, Julius H. Amberg of the War Department, and James D. Wise of the Navy Department be appointed to consider the problems of policy involved in the application of the National Labor Relations Act to defense contracts and to make a report on this subject to the Office of Production Management. Pending receipt of such report and until further action by the Office of Production Management, no request for a formal opinion will be made to the Attorney General.
6.	"Escalator Clause" — Labor Price Adjustment Clause — Airplane Contracts.
The Director General submitted a draft of a letter dated February 3, 1941 (Doc. 1) proposed to be sent by Mr. John D. Biggers, as Chairman of the Tax and Finance Committee of the Advisory Commission to the Council of National Defense to Under Secretary of War Robert P. Patterson. It recommends the use of a broad index of average hourly earnings substantially similar to the index for the "durable goods manufacturing industry" index now employed by the Navy Department to replace the present "aircraft industry" index now in use in connection with the labor price adjustment clause in Army airplane contracts. After discussion it was agreed,
That the Office of Production Management approves the sending of the letter dated February 3, in the form submitted by Mr. Biggers.
7.	Appointments of General Counsel and Secretary.
The appointments of John Lord O’Brian (Doc. 2) of New York as General Counsel and Herbert Emmerich (Doc. 3) of Illinois as Secretary of the Office of Production Management which have been approved by the President, were confirmed.
8.	initiation Fees in Unions.
Associate Director General Hillman reported that satisfactory progress was being made in regard to eliminating excessive initiation fees required by certain unions. The American Federation of Labor at its Miami meeting agreed to cooperate and is attempting to persuade the organizations affiliated with it to adopt this policy. The charging of initiation fees is confined to the building trades and to the metal industry. The Carpenter’s Union has issued orders that amounts collected from members above
6
a certain sum should be returned to them. Field representatives. are going out into the regions where complaints are being received on the charging of excessive initiation fees for the purpose of investigating the matter and persuading the unions to change their practices.
9.	Closed Shop on Government Contracts.
Associate Director General Hillman recommended that matters connected with closed shop on Government contracts where stoppages of work were threatened should be taken care of case by case. He reported that the shipbuilding wage conference on the Pacific Coast had been postponed at the request of Secretary Knox, with whom he will review the problem.
10.	Competition for Shop Foremen.
Mr. Hillman is collecting information and will report at a future meeting on the growing practice in certain industries of raising pay in order to get shop foremen from other factories.
11.	Payment of Additional Compensation on Two and Three Shifts.
It was reported that unreasonable requests for double compensation on second and third shifts where no overtime is involved were being received by manufacturers. After discussion it was agreed,
That in the case of cost plus fixed fee defense contracts, the maximum premium to be paid for second and third shifts should be not in excess of ten per cent.
12.	Priorities Board.
With reference to inclusion of the Under Secretaries of War and Navy, a matter held over from the meeting of January 31, (page 1, paragraph 3) as members of the Priorities Board, it was agreed,
That the Under Secretary of War and Navy shall continue to attend meetings of the Priorities Board as they desire and that no further action will be taken at this time to request their formal inclusion as members of the Board.
13.	Transfer of Certain Functions of the Army and Navy Munitions Board to the Division of Priorities.
With reference to the minutes of January 31 (page 1, paragraph 4) it was agreed,
That the proposal to transfer certain functions of the Army and Navy Munitions Board to the Division of Priorities, Office of Production Management was withdrawn. The circular of priorities now in use has been approved by all concerned and it was resolved, That circular entitled “Information
FEBRUARY 18 AND 28, 1941
on Priorities” (Doc. 4)16 now in use by the Priorities Division is hereby adopted.
14.	Tax Certification Delay.
Under Secretary Patterson reported delay in the offices of Mr. R. B. Eicholtz in charge of tax certification for the National Defense Advisory Commission and suggested that Mr. Eicholtz be provided with additional personnel for a few months until the bulk of tax certification be cleared. The Director General instructed the Secretary to take this matter up with Judge Mark Norman of the OPM, who passes on the Certificates of Necessity and with Mr. McReynolds, Secretary of NDAC, to see that this work is expedited in Mr. Eicholtz’s office as to Certificates of Non-Reimbursement and of Government Protection.
15.	Approval of Contracts by Mr. Donald M. Nelson.
The Director General reported that shortly after the creation of the Office of Production Management Mr. Donald Nelson, Director of Purchases, took over the functions previously exercised by Mr. Knudsen in his capacity as Production Commissioner NDAC, in connection with the approval of contracts for Army and Navy materials and facilities.
16.	Navy Policy in Construction of New Arsenals.
The Director General pointed out the Navy Department matter presented on January 31 (minutes,
18 This Circular is substantially the same as that cited in the meeting of January 31.
page 2, paragraph 10) and raised the question whether sufficient consideration had been given to the decision of the Navy Department to build additional arsenals in connection with the manufacture of guns or parts thereof, particularly in the case of the Hudson and Westinghouse contracts. Under Secretary Forrestal agreed to have the Bureau of Ordnance of the Navy Department review its policies in regard to this class of facilities. Under Secretary Forrestal requested that a man from the Office of Production Management be assigned to the Ordnance Department to assist the Navy in planning such facilities from the outset.
Minutes Approved:
'Nm.. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Forrestal
Secretary of the Navy1"1
Herbert Emmerich
Herbert Emmerich
Secretary
17 The minutes were customarily typed on the assumption that they would be signed by the members of the Council. However, the minutes of meetings at which one or more members of the Council were represented by alternates were often signed by the alternates on behalf of their principals. That practice accounts for this and subsequent instances in which Under Secretary Forrestal signed on behalf of the Secretary of the Navy without revision of the typewritten tide.
MINUTES OF THE MEETING OF THE OFFICE OF PRODUCTION MANAGEMENT
Held in fhe Office of Mr. William S. Knudsen at Social Security Building, 10:00 a.m., Friday, February 28, 1941
The following members of the Office were present: The Director General, the Associate Director General, the Secretary of War, Under Secretary James V. Forrestal (for the Secretary of the Navy).
There were also present Julius H. Amberg, Special Assistant to the Secretary of War; James D. Wise, Special Assistant to Mr. Forrestal, John Lord O’Brian, General Counsel, Herbert Emmerich, Secretary.
1.	The Minutes of the Meeting of February 18.
The Secretary reported that the minutes of February 18 had been circulated to all members of the Office and it was agreed:
That the minutes of the Meeting of the Office held on February 18 are approved in the form circulated.
2.	Industrial Relations.
There was informal discussion of the increasing seriousness of the foreign situation and the importance of maintaining work without stoppage in defense industries. Great concern was expressed on the increasing number of strikes which were delaying the completion of critical parts and equipment. As the discussion was informal in nature and no action was taken, it was agreed that no record be kept.
3.	Meeting of the Labor Policy Advisory Committee.
Upon conclusion of the meeting Mr. Hillman introduced the members of the Office of Production Management to the members of the Labor Policy Advisory Committee, at which the Secretary of War, Under Secretary Forrestal and Director General
7
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
Knudsen spoke to the group and emphasized the seriousness of the foreign situation and requested their cooperation in the prevention of stoppages in defense industries. A list of members in attendance at this meeting is attached hereto (Doc. 1).
Minutes Approved:
S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Herbert Emmerich
Document 1
Persons who attended the Labor Policy Advisory Committee Meeting, February 28! 1941
H. W. Brown, international president, International Association of Machinists
S. H. Dalrymple, president, United Rubber Workers, Akron
Clinton Golden, regional director, Northeastern Region, Steel Workers Organizing Committee, Pittsburgh
Allen S. Haywood, director of organization, Congress of Industrial Organizations, New York
Samuel J. Hogan, president, National Marine Engineers Beneficial Association, Washington
A. Johnston, grand chief engineer, Brotherhood of Locomotive Engineers
George Q. Lynch, general president, Pattern Makers League of North America
A. E. Lyon, grand president, Brotherhood of Railroad Signalmen of America, Chicago
Charles J. MacGowan, vice-president, International Brotherhood of Boiler Makers, Iron Shipbuilders, Welders and Helpers of America, Chicago
George Masterton, general president, United Association of Journeymen, Plumbers and Steamfitters R. J. Thomas, president, United Automobile Workers of America, Detroit
D. W. Tracy, formerly president International Brotherhood of Electrical Workers, now Second Assistant Secretary of Labor
From the Office of Production Management:
Maxwell Brandwen George Brooks Thomas Bums W. E. Chalmers Herbert Harris Joseph D. Keenan Isador Lubin Edwin M. Martin Eric Nicol John Owens
From the Conciliation Service, U. S. Dept, of Labor:
John R. Steelman
MINUTES OF THE MEETING OF THE OFFICE OF PRODUCTION MANAGEMENT
Held in the Board Room of the Office at the Social
The following members of the Office were present :
The Director General, the Secretary of War, Acting Secretary of the Navy James V. Forrestal.
There were also present Julius H. Amberg, Special Assistant to the Secretary of War ; William W. Dulles, Special Assistant to Mr. Forrestal; John Lord O’Brian, General Counsel ; Herbert Emmerich, Secretary.
1.	The Minutes of the Meeting of February 28
The minutes of the meeting of the Office held February 28, 1941, were approved.
2.	Approval of Regulations for Divisions of Production, Purchases, and Priorities
The Secretary presented drafts of proposed Regulations Nos. 1, 2, and 3, defining the status and prescribing the duties and functions of the Divisions of Production, Purchases, and Priorities, respectively. The General Counsel stated that the drafts
Security Building, 10:00 a.m., Friday, March 7, 1941
had been approved by him and by the heads of divisions of the Office of Production Management and by representatives of the Army and Navy. He recommended that the approval of the President be obtained in connection with Regulation No. 3, concerning the Division of Priorities, in order to reaffirm the validity of the delegations of authority contained therein. Accordingly, it was agreed that:
a.	Regulation No. 1 (Doc. 1), defining the status of the Division of Production in the Office of Production Management and prescribing its duties and functions, is approved.
b.	Regulation No. 2 (Doc. 2), defining the status of the Division of Purchases in the Office of Production Management and prescribing its duties and functions, is approved.
c.	Regulation No. 3 (Doc. 3), defining the status of the Division of Priorities in the Office of Production Management and prescribing its duties and functions, is approved.
8
FEBRUARY 28, MARCH 7 AND 17, 1941
3.	Establishment of a Bureau of Research and Statistics
The Secretary presented a draft of a proposed Regulation No. 4, establishing a Bureau of Research and Statistics in the Office of Production Management. The General Counsel stated that the draft had been approved by him and by the heads of divisions of the Office of Production Management. Accordingly, it was agreed that:
Regulation No. 4 (Doc. 4), establishing a Bureau of Research and Statistics in the Office of Production Management and prescribing its duties and functions, is approved.
4.	Legal Division
The General Counsel informed the Council that the Legal Division is now established; that there are to be no legal positions in the Office of Production Management that are not in his office and subject to his jurisdiction; and that he has appointed Mr. Fredrick M. Eaton, Mr. Milton Katz, and Mr. Geoffrey Smith as Assistant General Counsels in charge of Production, Purchases, and Priorities, respectively, and Mr. Herbert Marks as Assistant General Counsel in charge of legal research and matters of legislation.
5.	Patents
There was discussion of the problem involved in legislation to permit the Government to seize certain patents, favored by Assistant Attorney General Thurman W. Arnold in which the Commissioner of Patents does not concur. Questions were raised whether such legislation should not be confined to
defense articles and whether existing legislation is not adequate. It was agreed that:
The General Counsel of the Office of Production Management, in cooperation with Mr. Julius H. Amberg of the War Department, will undertake a study of the problem of legislation concerning the seizure of patents and will prepare a brief and will report to the Council.
6.	Industrial Relations
Mr. Knudsen explained that the proposal for a Mediation Board comprising eleven men, four representing labor, four representing industry, and three representing the public had been objected to by Mr. Philip Murray of the Congress of Industrial Organization. There was brief discussion of the growing importance of appropriate action in the field of industrial relations, but in the absence of Associate Director General Hillman further discussion and decision was postponed.
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Herbert Emmerich
OFFICE OF PRODUCTION MANAGEMENT MINUTES OF THE MEETING OF THE COUNCIL
Held in the Board Room of the Office at the Social
The following members of the Council were present :
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
There were also present Under Secretary Robert P. Patterson and Julius H. Amberg, Special Assistant to the Secretary, War Department; John Lord O’Brian, General Counsel; Herbert Emmerich, Secretary; and, for a portion of the meeting, John R. Steelman of the U. S. Conciliation Service.
1.	The Minutes of the Meeting of March 7, 1941
The minutes of the meeting of the Council held March 7, 1941, were approved.
2.	National Defense Mediation Board
Mr. Hillman explained that he and Mr. Knudsen had been consulted by the President in connection
Security Building, 11:00 a.m., Monday, March 17, 1941
with a proposed Executive Order (Doc. I)18 to establish a National Defense Mediation Board to be created in the Office of Emergency Management. It is to be appointed by the President and to consist of eleven members: three representing the public, four representing employees, and four representing employers. The duties of the Board are to prevent and to settle stoppages in defense industries when the Secretary of Labor has certified a dispute to the Board. The President hopes to make an announcement concerning the appointment of this Board on Wednesday, March 19. It was agreed that:
The Council of the Office of Production Management ratifies and approves the action taken by the Director General and the Associate Director General in recommending the creation of a National Defense Mediation Board to the President.
18 Executive Order 8716, March 19, 1941.
9
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
3.	Labor Division
The Secretary presented proposed Regulation No. 5 (Doc. 2), establishing a Labor Division in the Office of Production Management and defining its duties and functions. He explained that the purpose of this regùlation is to make it possible to transfer to the Office of Production Management the training in industry, labor relations, determination of labor requirements and labor supply, and other labor activities which are now under Mr. Hillman’s supervision as Labor Commissioner of the National Defense Advisory Commission. It was agreed that :
Regulation No. 5 (Doc. 2), establishing a Labor Division in the Office of Production Management and prescribing its duties and functions, is approved by the Council and will be forwarded to the President for his approval.
Subject to the approval of the President, Mr. Sidney Hillman is appointed Director of the Labor Division of the Office of Production Management in addition to his duties as Associate Director General. (Doc. 3)
4.	Plant Site Committee
The General Counsel reported that there were evidences of increasing Congressional sentiment in favor of the establishment of a Plant Site Board to pass upon the location of new plant sites for government financed defense facilities with a view to greater decentralization of industry. A provision for such a board had been inserted in Naval Appropriations Bill No. H.R. 3617 on March 10 as a committee amendment in the Senate, but was subsequently stricken in conference. Several other bills have been introduced including a bill by Senator Russell (S. 1037) which provides for such a board and sets up standards which shall govern plant site locations. The disadvantage of legislating on this subject at this time consists in the fact that standards will be rigidly stated and difficult to administer and will impede the speed of the production program. Furthermore, the bill referred to provides that the Board shall consist of the Director General, the Associate Director General, and the Agricultural Commissioner of the Advisory Commission to the Council of National Defense, thus extending indefinitely the life of that body, The only statutory authority of the Advisory Commission at present is in the revenue bill in connection with tax certification and in the 1941 appropriation acts involving expediting funds for the Army and Navy. The Advisory Commission is not mentioned in language approved by the Bureau of the Budget for 1942 appropriations.
It was felt that an opportunity presented itself for orderly consideration of the problems of plant site
location in the new program, but that provision could effectively be made by establishing a committee through administrative action with greater flexibility and freedom of operation than by the creation of a statutory board. Accordingly it was agreed that:
A Plant Site Committee of five members shall be established in the Division of Purchases, Office of Production Management. The Director General, acting in association with the Associate Director General, shall appoint its members and designate its chairman. The Committee shall review and approve or disapprove proposed locations for additional plants or facilities required for the national defense to be built from funds which become available hereafter to the various contracting agencies such as the Army, Navy, and other departments, agencies, and corporations of the Government.
The Committee shall work in close cooperation during every step of the process of plant site location with the appropriate representatives of the contracting agencies. It shall report regularly to the Council of the Office of Production Management on decisions on new plant site locations and shall work under the Council’s guidance on plant site location policy. It shall submit for final decision to the Council any differences that may arise between it and the contracting agencies.
Insofar as it finds it consistent with the primary objective of expedition of the program of national defense production and with appropriate military factors, the Committee shall be guided in approving plant site locations by a policy of wide geographic decentralization of defense industries and full employment of all available labor.
An appropriate resolution further defining the functions, policies, and procedures to govern the work of the Plant Site Committee shall be drafted and presented for adoption at thé next meeting of the Council.
The Director General and the Associate Director General subsequently appointed the following committee: Donald M. Nelson, Director of Purchases, Office of Production Management; Clifford Townsend, Special Adviser on Agricultural and Labor Matters ; Eli Oliver, Special Assistant on Labor Relations; E. F. Johnson, Chief, Aircraft, Ordnance, and Tools Branch, Production Division, Office of Production Management; and S. R. Fuller, Chairman, Production Planning Board, Office of Production Management.
5.	Taxation by States of Defense Industries
The Secretary of War reported that several states had imposed and eighteen states were considering the
10
MARCH 17, 1941
imposition of new taxes which would have the effect of increasing the cost to the United States of defense materials produced under cost plus fixed fee contracts. He recommended that action be taken to protect the Government’s interest by bringing to the attention of the states the adverse effect of taxation on the cost of the Government’s defense procurement program.
6.	Army and Navy Competition for Deliveries of Finished Products
Mr. Knudsen called attention to the competition for deliveries of finished products at the Chrysler Plant between field officers of the Army and Navy. He requested the Secretaries of War and Navy to bring this matter before their Departments and offered the services of the Office of Production Management to coordinate conflicts between the two military arms on the delivery of finished goods and materials.
7.	Protection of Workers in Their Homes from Violence
Mr. Knudsen reported that in Pennsylvania, in connection with the strike at the Vanadium Corporation in Pennsylvania, foremen and white-collar employees were threatened with violence in their homes. The question was raised whether such protection was a military or civil responsibility. It was agreed that:
The protection from violence in labor disputes of employees in their homes is a function of the civil authorities, and when such violence impends, the Governor of the State should be asked to afford the necessary policing.
8.	Strike in the Plant of the Allis-Chalmers Company, Milwaukee, Wisconsin
Dr. John R. Steelman of the U. S. Conciliation Service joined the meeting at this’point and reported on the Allis-Chalmers strike in Milwaukee. The strike, which is getting into its eighth week, has reached a very serious stage and is seriously hindering the delivery of equipment, particularly on Navy contracts in connection with turbines for naval vessels. A two-page agreement had been drafted to which representatives of both employer and employees acceded in Washington on February 15 with an assurance from Mr. Hillman that the proposal could not mean a closed shop. After returning to Milwaukee, the Company refused to ratify the agreement on the ground that a Union representative claimed the proposal provided for Union maintenance. Mr. Hillman declined to make any further interpreta
tion after the acceptance by both parties, as the memorandum provides for an interpretation by a referee mutually agreed upon. Dr. Steelman commented further on the nature of the dispute and a general discussion followed. It was agreeed that:
Mr. Hillman will talk with his associates and will continue to insist on the performance by both parties of the agreement above referred to.
9.	Report of Mr. A. D. Whiteside, Chairman of the Commercial Aircraft Priority Committee
The Secretary of War obiected to the proposals in the renort of March 4 submitted by Mr. A. D. Whiteside, Chairman. Commercial Aircraft Prioritv Committee, Priorities Division. Office of Production Management, and handed Mr. Knudsen a memorandum in opposition thereto.
Under Secretary Patterson stated that the War Department would stand on its letter to the Committee of January 24 which made allowances for commercial aircraft deliveries up to October 1941, not in excess of the following:
53 Douglas—DC 3 (Transports)
3 Douglas—DC 4 (Prototypes)
25 Lockheed Lodestars (Model 18)
3 Lockheed Constellation (Prototypes)
84 Commercial Planes
The War Department is unwilling to consent at this time to the Committee’s proposal for assuring commercial aircraft deliveries in 1942 and 1943 and opposes the suggestion that thirty-one more Lodestar planes be released for use in South American traffic. The Department believes that these planes should be released from the eighty-four commercial planes listed above. Accordingly it was agreed that :
The report of the Commercial Aircraft Priority Committee is not approved and is carried over for further consideration.
10.	Application of National Labor Relations Act to Defense Contracts
Mr. Amberg made an informal interim oral report of his personal views as a member of the Committee appointed on February 18 on the subject of the application of the National Labor Relations Act to defense contracts. He reported that as yet the Committee had been unable to agree on recommendations. After a discussion it was agreed that :
Associate Director General Hillman and Secretary Stimson will confer on the problem of modification
11
700598—46—2
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
ôf the National Defense Advisory Commission Statement of Policy of August 31, 1940 on the application of the National Labor Relations Act to defense contracts, and will report in the near future.
11.	Senate Investigation under Truman Resolution
Mr. O’Brian was requested by the Office of Production Management to keep in touch with the representatives of the Army and Navy in the preparation of data for the Truman Committee which is to investigate the conduct of the defense program (S.
Res. No. 71).19 Mr. Knudsen undertook to advise the President of this arrangement.
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary oj War Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
19 77th Cong., 1st Sess., March 1, 1941.
OFFICE OF PRODUCTION MANAGEMENT MINUTES OF THE SPECIAL MEETING OF THE COUNCIL
Held in Mr. Knudsen's Office at the Social Security Building, 3:30 p.m., Thursday, April 3
The following members of the Council were present:
The Director General, the Secretary of War, and the Secretary of the Navy.
There were also present Robert P. Patterson, Under Secretary of War; Harold D. Smith, Director of the Bureau of the Budget; John B. Blandford, Jr., Assistant Director of the Bureau of the Budget; Bernard L. Gladieux, Chief of the National Defense Section of the Bureau of the Budget; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
The Director General explained that this was a special meeting called to consider the problems raised by the proposed Executive Order establishing a Price Administration, a draft of which the Director of the Bureau of the Budget had been kind enough to submit to the Office of Production Management for review and criticism. (Doc. 1)
The Director of the Bureau of the Budget indicated that there was an urgent problem before the country in preventing increases in prices and in the spiraling of the cost both of military supplies and civilian commodities; and that this national need was intimately connected with the entire defense effort. He also pointed out that the present status and powers of the office of the Commissioner of the Division of Price Stabilization and the Commissioner of the Division of Consumer Protection in the Advisory Commission to the Council of National Defense were no longer adequate to meet the need; and that it was proposed to create a new organization for price stabilization in the Office of Emergency Management under the supervision of an administrator who would report directly to the President. It was the intention of the proposed Executive Order to give as much authority as could be found in existing statutes to this new Office of Price Administration, and the present functions of the Commissioner of the Divi
sion of Consumer Protection would be merged therein.
The Director General replied that he was in accord with the proposal to establish an independent Price Administration reporting directly to the President and coordinate with the Office of Production Management ; that the purpose of the meeting was to see that the terms of the proposed Executive Order make a clear distinction between the respective functions of the two organizations; and that orders to industries on price and priority matters be kept in proper channels.
The Secretary of War said that the important thing is to clarify the terms of the order and to avoid administrative conflicts afterwards. He particularly emphasized that the order should make clear that civilian needs were subordinate to military needs during the period of the emergency and suggested specifically a revision of Paragraph 2h of the draft with a view to avoiding any possibility of conflict of authority under Section 9 of the Selective Service and Training Act of 1940.20
The Secretary of the Navy emphasized the public relations aspects of the order, recommending that the language be very plain and not susceptible to misinterpretation by the press and the public. He believed that a clear distinction should be made between civilian and military needs, and that the opening paragraph of the order should set forth clearly the intimate connection between the problem of maintaining stable prices and defense needs.
The Under Secretary of War pointed out that Paragraph 2h(2), concerning Section 9 of the Selective Service and Training Act of 1940, needed revision. He pointed out that this section of the Act, in regard to commandeering, was designed for military and naval articles and required the collaboration
29 Public La’v 783, 76th Cong., 3d Sess., September 16, 1940.
12
MARCH 17, APRIL 3 AND 29, 1941
either of the Secretary of War or the Secretary of the Navy ; that the President had delegated his functions to the Office of Production Management in regard to this section, but that they could not be delegated to a Price Administration on which the Secretaries of War and the Navy were not represented. In his opinion it was doubtful whether Section 9 could be used in aid of fixing prices for commodities which were not intended for military and naval use.
It was the consensus of opinion that the order should be redrawn to make clear the following objectives which were agreed to.
1.	That the Price Administrator should be an independent official and have independent and complete control of determining prices.
2.	That the functions at present vested in the Office of Production Management with respect to production, supervision of purchases, and the issue of priority orders, shall remain unchanged and that where the Price Administrator’s functions impinge on those of the Office of Production Management, they should be of an advisory character.
With these objectives in mind, the following changes were recommended in connection with redrawing the order :
1.	That the opening paragraph of the order make it clear that the control of prices and avoidance of spiraling are intimately connected with the problem of defense during the emergency.
2.	That in Paragraph 2a (3) the words “consistent with” be stricken out and the words “subordinate to and not in conflict with” be substituted to make it clear that the defense needs are paramount and have preference over the commodities required for civilian use.
3.	That Paragraph 2a(4) be clarified particularly in regard to the word “promote” in order that there shall be no misunderstanding about the administration of the priorities function and direct dealing with the industries by the Office of Production Management, and emphasize that the actual issue of priorities orders both for defense and civilian purposes shall be confined to the Office of Production Management.
4.	That Paragraph 2d which defines the function of the Administrator of Prices to advise and make recommendations “in respect to such of their other activities as may affect the supply, distribution, and price of materials and commodities” be amended and clarified.
5.	That the function described in Paragraph 2g, providing that the Price Administrator shall “stimulate” the utilization of substitutes by civilians, should properly be exercised in conjunction with the Office of Production Management.
6.	That, in regard to Paragraph 2h(2) concerning Section 9 of the Selective Service and Training Act of 1940 and Section 120 of the National Defense Act (Title 50, U.S.C., 1934 edition, Section 80), and in regard to Paragraph 2h(4) concerning Section 1 (15) of Title 49, U.S.C., 1934 edition, (transportation provision), the Price Administrator’s powers be confined to the advisory ones of recommending commandeering actions either to the Office of Production Management or to the President; so that, in respect to the foregoing, the Price Administrator’s functions will clearly be advisory rather than authoritative.
7.	That when priority orders concern the allocation of that portion of the total national production which can be assigned to civilian use after military needs are taken care of, the Price Administrator should apply them to the industries through the Priorities Division of the Office of Production Management.
Minutes Approved:
Wm, S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building,
The following members of the Council were present:
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
2:00 p.m., Tuesday, April 29
There were also present Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
13
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
For a portion of the meeting the following were present: Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply; Brigadier General Lewis B. Hershey, Deputy Director of the Selective Service System, now Acting Director; Major Joseph F. Battley, Occupational Deferment Division, Selective Service System; Major Campbell Johnson, Selective Service System; and Isador Lubin, Deputy Director, Labor Division.
1.	Minutes of the Meeting of April 3, 1941
The minutes of the meeting of the Council held April 3, 1941, were approved.
2.	Office of Price Administration and Civilian Supply
Mr. Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, appeared in person at the meeting and stated that the President had appointed him Administrator of the Office by Executive Order of April 11, 1941 (Doc. 21a) ;21 that he desires to cooperate in every way with the Office of Production Management; that he has already been in touch with Mr. Stettinius, Director of Priorities, and Mr. Nelson, Director of Purchases, and has worked out satisfactory relations with their divisions; and that he desires the opportunity to appear again in two weeks before the Council to present definitive plans and procedures of his office for criticism and review.
Mr. Henderson related that he plans to establish the following divisions in his office:
(1)	A Price Section under Dr. J. K. Galbraith as Chief, formerly of Princeton University and of the staff of Mr. Chester Davis of the Advisory Commission to the Council of National Defense. (Note: Mr. Chester Davis is resigning as Agricultural Commissioner of the Advisory Commission to the Council of National Defense, and the functions of his office are being taken over by the Secretary of Agriculture.)
(2)	A Consumer Protection Section under Miss Harriet Elliott, formerly Commissioner on Consumer Protection in the Advisory Commission.
(3)	A Civilian Allocation Division under Dr. Joseph Weiner, formerly Director of the Public Utilities Division of the Securities Exchange Commission.
(4)	A Civilian Supply Division, under an officer not yet designated, which will study the expansion of products for civilian consumption which do not compete with defense needs. This is a precautionary measure against the necessity for priority and price limitation.
a Executive Order 8734, April 11, 1941.
Mr. John Hamm will continue to act as Mr. Henderson’s Deputy Administrator, and Mr. C. David Ginsburg as his General Counsel.
Mr. Henderson discussed various commodities on which price control is contemplated, and stated that he is trying to avoid hardship in individual cases, such as the steel industry, by the examination of the books of various smaller companies, and is generally satisfied that price control on steel is not causing hardship.
Mr. Knudsen expressed the desire of the Office of Production Management to work harmoniously with the new Office of Price Administration and Civilian Supply and to have Mr. Henderson attend again and present his material. Mr. Henderson then left the meeting.
3.	Deferment of Skilled Workers under the Selective Service and Training Act of 1940
At this point Brigadier General Lewis B. Hershey, Deputy Director of the Selective Service System, now Acting Director, Major Joseph F. Battley, Occupational Deferment Division, Selective Service System, Major Campbell Johnson, Selective Service System, and Isador Lubin, Deputy Director of the Labor Division of the Office of Production Management, joined the meeting. General Hershey explained that, under the Selective Service and Training Act of 1940, blanket deferment by groups is prohibited and the only alternative of the Selective Service System is to put material, which will be a guide in the deferment of individuals needed in defense work, in the hands of local boards and to cooperate with boards of appeal to whom applications from local boards are taken. Mr. Knudsen pointed out that there is greater necessity to defer the calling up for military service of the journeyman-mechanic who can operate more than one machine, than other workers; but that it should be noted that a great deal of money is being spent on the training of apprentices who are being prepared for skilled trades in certain industries. It was also mentioned that supervisors and skilled engineers, particularly in the aircraft plants, are being drafted.
General Hershey also mentioned the fact that it is very important to inform employers and employees that no odium is attached to applying for deferments in skilled and critical trades necessary for national defense production. After discussion it was resolved that:
The Associate Director General shall designate representatives of the Labor Division to cooperate with representatives of the Selective Service System in preparing a pamphlet containing specifications as guides for local draft boards. Such a pamphlet should mention particular industries that are vital to the national defense and describe in each craft and in each region the operations which are critical and in which shortages are threatened. It was further resolved that, from time to time, as shortages in other skilled trades impend, they be
14
APRIL 29, 1941
brought to the attention of the Selective Service System by the Labor Division so that local boards may be advised accordingly.
At this point, Mr. Lubin, General Hershey, Major Battley, and Major Johnson left the meeting.
4.	Application of National Labor Relations Act to Defense Contracts
The Director General, Mr. Knudsen, reported that he and Mr. Hillman have received a request from the President for a recommendation on a joint proposal by the Secretary of the Treasury, Mr. Henry Morgenthau, and the Director of Purchases in the Office of Production Management, Mr. Donald M. Nelson. Their joint proposal is that, on each defense contract, the contractor would be required to certify that he is complying and will continue to comply with all Federal laws affecting labor to which he is subject and that he will require all subcontractors to sign similar certificates before making awards to them.
A general discussion ensued concerning the problem of finding a satisfactory method of applying the National Labor Relations Act to defense contracts. After the conclusion of this discussion, the General Counsel was requested to draft a letter to be sent to the President by the Director General and the Asso-cite Director General. This proposed letter, which was circulated and unanimously agreed to by all members of the Office of Production Management, is as follows:
The Council of the Office of Production Management has given careful consideration to the joint recommendations recently made to you by Secretary Morgenthau.
At a meeting on April 29 of the Council of the Office of Production Management, it was agreed that the labor policy, as outlined by the Advisory Commission to the Council of National Defense in September 1940 and transmitted by you to the Congress, is in full force and effect and will continue to be followed in the letting of defense contracts.
The Council is unanimously opposed to the adoption of the recommendations jointly made to you by Secretary Morgenthau and Mr. Nelson, as unnecessary. It was stated that the officers of the OPM charged with the clearance of contracts will, in doubtful cases, consult the Labor Division of OPM and will refrain from clearing contracts to habitual violators of the Federal labor laws, except in the instances where, in their opinion, such action would result in undue interference with the preparation of national defense.
The papers forwarded by you are herewith returned.
5.	Vacation Policy
The Director General, Mr. Knudsen, reported that numerous industries which have vacation plans for
their workers and which are engaged in defense work had requested a statement of vacation policy from the Office of Production Management. In view of the urgency of getting the maximum production this summer, and in view of the necessity at the same time of protecting the rights and health of labor, he proposed the adoption of a policy which would recommend to industry that workers who forego their vacations be compensated. It is understood that this policy applies only to private employers having vacation plans. Any change in annual leave policy in Government-owned plants and arsenals is a matter of legislation. After discussion it was agreed that the following policy be adopted :
In the matter of vacation policy in plants manufacturing munitions or essential war materials, the policy recommended by the Office of Production Management is that any employee who voluntarily gives up his vacation will be given the equivalent amount of money as a bonus. In no case will vacations be denied where for reasons of health the employee desires a rest. Vacations should be staggered as much as possible through the period May 30th to August 31st.
6.	Anti-Trust Laws
The General Counsel reported that he had reached an agreement with the Attorney General concerning the policy to be pursued under the anti-trust laws and submitted a letter from the Attorney General (Doc. 22)22 concerning this agreement. After discussion it was agreed that :
The arrangement between the General Counsel of the Office of Production Management and the Attorney General is approved.
7.	Materiel Coordinating Committee—United States and Canada
Mr. Knudsen reported that, pusuant to the decision of the Council of February 18 (Minutes, paragraph 4), negotiations had been held between the Office of
22 Letter, Robert H. Jackson to John Lord O’Brian, April 29, 1941.
Since many acts of the Office of Production Management and the Office of Price Administration and Civilian 'Supply will necessitate cooperation and integration of industry in such a manner as to constitute violation of antitrust laws as they have been enforced and interpreted, and since failure to receive assurance from the Government that prosecution will not result from such action will deter businessmen in their activities, it is the purpose of this letter to set forth the conditions under which antitrust proceedings will not be instituted.
Meetings of industry with the Office of Production Management and the Office of Price Administration and Civilian Supply are not illegal; industrial, committees may be formed; and industry may cooperate in the selection of personnel of these committees. The committees, however, should be generally representative of the entire industry.
Each industry committee shall confine its activities to collecting and analyzing information and making recommendations to the Office of Production Management and the Office of Price Administration and Civilian Supply and shall not undertake to determine policy nor to compel compliance. The determination of policy is a function of the Office of Production Management and the Office of Price Administration and Civilian Supply; the committees shall be merely advisory.
Requests for action, such as allocation orders, in a general field must be approved by the Department of Justice; after approval of the general plan, specific action may be taken without further consultation with the Department. Acts performed under this method of approval will not be prosecuted under antitrust laws.
But in all cases the Department reserves the right to enjoin continuance of acts found not to be in the public interest and persisted in after notice to desist.
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
Production Management and the Minister of Munitions and Supply of Canada, and it is now proposed to create a Materiel Coordinating Committee for the United States and Canada. This Committee will be composed of two members of the Canadian Wartime Industries Control Board and two members of the Office of Production Management. The Committee will collect and exchange information on raw materials and supplies in the two countries. Mr. Knudsen nominated Mr. Edward R. Stettinius, Jr., Director of the Priorities Division, and Mr. W. L. Batt, Sr., Deputy Director of the Production Division, to serve as the Office of Production Management members of this Committee. The Secretary stated that this proposal has the endorsement of Mayor Fiorello LaGuardia of New York, Chairman of the United States Section of the Permanent Joint Board on Defense between the United States and Canada, who had originally suggested such a liaison. It was agreed that:
Mr. Knudsen’s proposed letter (Doc. 23) to the Honorable C. D. Howe, Minister of Munitions and Supply, endorsing the creation of a Materiel Coordinating Committee between the United States and Canada and nominating Mr. Stettinius and Mr. Batt of the Office of Production Management as members, is approved.
8.	Deferment of Office of Production Management Employees under the Selective Service and Training Act of 1940
The Director General raised the question of whether deferment should be requested for the employees of the Office of Production Management. After discussion it was agreed that :
The policy of the Office of Production Management is not to request deferment of its employees under the Selective Service and Training Act of 1940.
9.	Mild Control of Metals to Prevent Inventory Accumulation
The Director General reported that the Director of Priorities, Mr. Stettinius, has recommended a plan to prevent the excessive accumulation of inventories on certain metals not under priority control (Doc. 24) ,23 After discussion it was agreed that :
The recommendation for control of excessive accumulation of inventories on certain metals set forth in the document is approved.
38 Memorandum, E. R. Stettinius, Jr., to the Office of Production Management, April 29, 1941.
It is proposed to control all metals not heretofore controlled to prevent excessive accumulation of inventories by forbidding suppliers to deliver such metals except on an affidavit that the customer is not accumulating a larger inventory than he ordinarily uses in his present rate of production and by making a survey of inventories through the use of questionnaires. A draft of an order implementing this plan is attached.
10.	Production Planning Board
Secretary Knox reported on the President’s interest on long-time planning which would be beneficial to the country after the defense operations are no longer necessary. He raised the question as to whether the Production Planning Board should not be made responsible to the Office of Production Management rather than to a single division thereof. After discussion, it was agreed that:
A report shall be requested from the Production Planning Board as to its present findings and of its future plans, after which further consideration will be given to its appropriate function and position in the Office of Production Management.
11.	New Production Program
The Director General, Mr. Knudsen, reported that it is essential that the War and Navy Departments and the Lend-Lease Administration review their production programs as of today and inform the Office of Production Management of future requirements. He stated that the number of men in the Army is no longer a good measure, and that it is preferable to base estimates on the amount of materials and of various commodities that would be needed.
12.	Strike Situation
The Associate Director General, Mr. Hillman, reported that now that the bituminous coal strike has been settled, labor disputes are at a minimum, and he estimates the maximum number of men now out of work in defense connected industries due to labor disputes to be 11,000.
13.	Meetings of the Office of Production Management
It was agreed that:
Regular meetings of the Office of Production Management will be held hereafter, until further notice, on Tuesday afternoons at 2:30 in the Board Room of the Social Security Building.
14.	Documents on Record for Information of the Council
The Secretary, Mr. Emmerich, requested and received permission to place the following documents on record for the information of the Council of the Office of Production Management:
(1)	Certificates of Non-Reimbursement, a policy adopted by the Advisory Commission to the Council of National Defense on April 9, 1941 (Doc. 25).
16
APRIL 29 AND MAY 6, 1941
(2)	Pacific Wage Conference Report (Doc. 26).24 (3) The report of Mr. Knudsen in connection with the reduction in production in the motor car industry (Doc. 27).25
24	Memorandum, Isador Lubin to Herbert Emmerich, April 15, 1941, transmitting and summarizing the attached agreement of April' 2, 1941, arrived at between, the representatives of organized labor and shipbuilders on the Pacific Coast.
The agreement, provides a uniform wage of $1.12 per hour for standard skill mechanics; overtime at time and one-half; double time for Sundays and holidays; rates for the second shift at eight hours’ pay for seven and one-half hours work plus ten percent premium; rates for the third shift at eight hours pay for 7 hours work plus 15 percent premium; grievance and arbitration machinery; no strikes; no slowdowns or boycotts because of the source of materials used in the shipyards; and apprenticeship courses.
25	Statement of W. S. Knudsen, April 17, 1941.
The automobile.and. truck producing industry has agreed to an initial 20 percent reduction in the production of motor vehicles for the model year beginning August 1.
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War HLS
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.mM Tuesday, May 6
The following members of the Council were present :
The Director General, the Associate Director General, the Under Secretary of War, and the Secretary of the Navy.
There were also present Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Facilities Required under the 1942 Navy Program
The Director General, Mr. Knudsen, inquired whether additional plant facilities are needed under the new Navy program. Secretary Knox reported that the Navy’s estimates for the fiscal year 1942 include, in connection with the Lend-Lease program, $29,170,000 in new facilities of which $9,000,000 is for the production of the Bofors gun, $9,000,000 for ammunition, $10,000,000 for aircraft construction, and $170,000 for 15-inch armor-piercing projectiles. No new major projects involving industrial facilities are contemplated under the 1942 Navy Appropriations Act or under the supplemental bill of approximately $800,000 which is now in preparation.
2.	Torpedo Production Facilities
The Director General raised the question whether there are sufficient facilities in existence for the manufacure of torpedoes.
Secretary Knox will undertake to ascertain and inform Mr. Knudsen whether additional capacity for torpedo construction is needed.
3.	Antiaircraft Gun—90-mm. versus 3.7-inch
The Director General inquired whether the 3.7-inch gun has been approved for British account under
the Lend-Lease program. He understands that the present production requirements of the Army call for the construction of 90-mm. antiaircraft guns of which a total of 1,203 are on order.
Under Secretary Patterson will undertake to inform the Director General whether additional facilities are needed for the construction of 90-mm antiaircraft guns and what the situation is with regard to the British requisition for the manufacture of the 3.7-inch gun.
4.	Bomber and Airplane Program
The Director General inquired as to the effect of the President’s request for additional heavy bombers involving additional planes under the Lend-Lease program. (Doc. 28) A schedule of this was promised. Mr. Knudsen’s understanding from a conference held yesterday with the Director of the Budget was that the 12,000 American plane program was being delayed due to a misunderstanding of the Army memorandum accompanying the request. Under Secretary Patterson promised to have this clarified with the Budget.
The total number of heavy bombers on all programs approved and pending to date, being 5925 units as follows:
Boeing B17 ........................... 1147
Consolidated B24 ...................... 943
Consolidated B32 ....................... 63
Boeing B29 (Wichita) .................. 250
Consolidated B24 (Ft.	Worth) ....	600
Douglas B24 (Tulsa) ................... 600
Douglas B17 (Santa Monica)............	500
Douglas R40 (Santa Monica)............	13
Vega B17E .............<............... 309
Ford B24 ............................. 1500
Total ................................. 5925
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
5.	Shortage of British and Canadian Pilots
Secretary Knox called attention to the fact that the British are in need of pilots to transport bombers now released by the United States Government and awaiting shipment. The Canadian pilot program has not been adequate to meet the demand, and he proposes that:
The Army and Navy look into this matter to see if they can speed' up the supply of pilots available for this purpose.
6.	Need for Additional Transport Planes for British Use as Transport Vehicles
Secretary Knox called attention to the increasing need by the British for more transport planes (DC3s).
Under Secretary Patterson will review the present transport plane requirements which at present are scheduled in connection with the commercial aircraft production program only to October 1, 1941, and he will advise the Office of Production Management of his findings.
7.	Distribution of Weekly Statistical Reports
Secretary Knox raised a question concerning the circulation of the weekly Statistical Summary of Defense Progress issued by the Bureau of Research and Statistics of the Office of Production Management. The Director General replied that only thirty-six copies of Part I, which is the highly confidential part, are distributed to a very select group, and the printing is done by the Office of Production Management’s own staff on multilith machines.
The Secretary, Mr. Emmerich, was requested to investigate the method of processing and the distribution of the Statistical Summary and to make arrangements which would insure its restriction as far as practicable.
/ 8. Necessity for Expediting Small Arms Ammunition Plants
Under Secretary Patterson called attention to the fact that Major General C. M. Wesson, Chief of Army Ordnance, is of the opinion that the material required for constructing and equipping three small arms ammunition plants is entitled to an A-l-a priority. Mr. Patterson said that this is the most urgent Army requirement of which he knows. The rifle powder production is well ahead of schedule, but the ammunition program will be seriously delayed if the machinery cannot be available so that the plants are ready for production in September.
Mr. Knudsen does not believe that the machinery and equipment needed for completing these plants will interfere with other high priority items. It was agreed that:
Under Secretary Patterson willwrite Mr. Knudsen requesting A-l-a priority on materials and machinery for small arms ammunition plants. There was no objection to granting this priority if it appeared on further study that, by doing so, the production of other priorities will not be interfered with.
9.	Customs Legislation
The Director General referred to the matter brought up in the Office of Production Management meeting in January (Minutes, 1-21-41, Paragraph 10) recommending the exemption from customs duties by law of certain materials purchased by Government agencies. He is informed that Colonel J. P. Dinsmore of the War Department and Mr. Ralph H. Dwan of the Bureau of Customs, Treasury Department, have been working on a bill to exempt strategic and critical materials from customs duties. Secretary Knox replied that the Navy Department had authority to purchase strategic materials and also to buy copper and other metals; and that it was cooperating with the various Metal Reserve Companies of the Reconstruction Finance Corporation. His authority is very broad, and he is exercising it to purchase through the Reconstruction Finance Corporation the needed materials for numerous agencies of the Government. It was therefore agreed that :
Unless further need therefor is demonstrated, additional legislation on exempting the import of strategic materials needed for the defense program from customs duties will not be requested.
10.	Vacation Policy
The Secretary, Mr. Emmerich, reported that the Production Division of the Office of Production Management has requested clarification of the vacation policy adopted at the last meeting, in regard to private employees on defense work, as it applies to Government-operated arsenals and shipyards (Minutes, 4—29—41, Paragraph 5). Secretary Knox reported that the Navy Department had legislative authority to apply substantially the same vacation policy that has been adopted by the Office of Production Management to employees of the Navy Department but that at the request of the President last fall, action under this authority had been deferred. The matter is still under consideration and would be reviewed again with the Bureau of the Budget. Under Secretary Patterson stated that the Bureau of the Budget has now given Presidential approval to the Springer Bill (H.R. 1634) which will, if passed, permit the Army to follow the same course in Army arsenals. It was agreed that :
When permitted by law, the vacation policy of the Office of Production Management adopted on April 29, 1941 is intended to apply to employees of any department of the Government engaged in defense work which desires to adopt it.
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MAY 6, 1941
11.	Defense Contract Service in Connection with Subcontracting
The Associate Director General, Mr. Hillman, reported that he had been in New York City yesterday and this morning where he met with representatives of industry and labor from the New York, Connecticut, and New Jersey areas. He is convinced, as a result of his visit and conferences there, that the Government is not availing itself of unused plant facilities nor of the supply of skilled and semi-skilled labor which is available there. The Army procurement offices in the district are not putting sufficient effort into getting the prime- contractors to sublet the work to small manufacturers in the region. There does not seem to be an effective tie-up between the Defense Contract Service of the Office of Production Management, which is endeavoring to stimulate subcontracting and the farming out of work, and the regional procurement offices. The Sperry Company has an elaborate organization and is doing a very good job in the New York area by actually showing subcontractors how to bid on and execute defense work. There is reason to believe that five or six of the large contractors could lend technical aid in the same way to further this program. Mr. Hillman believes that it is difficult to persuade labor and management of the need for overtime and other extraordinary measures when owners of unused facilities and idle workers are clamoring for defense work. Representatives of the War and Navy Departments will undertake to cooperate fully with the Office of Production Management, and it was agreed that:
The Office of Production Management will prepare and present to the Secretaries of War and the Navy a plan for an improved tie-up between the field contracting offices of the Army, Navy, Maritime Commission, and the district representatives of the Defense Contract Service of the Office of Production Management.
12.	British .Needs
The Director General reported on a memorandum dated May 5 which he had received from Major General H. H. Arnold of the Army Air Corps, who has just returned from England, reporting that leading British officials agreed on the fact that priority was needed for ships, tank guns, tanks, bombers, and A A guns.
13.	Problem of Oil Transportation from the Texas Fields to the Seaboard
The Director General reported the need for oil transport facilities. He said that the State of Georgia refused to let pipe lines, running through this state, cross railroad tracks. With a possible reduction in the number of available tankers, he looked for a shortage of oil transportation facilities to the Seaboard. After discussion it was agreed that:
The Office of Production Management strongly advocates the construction of additional pipe line facilities from the Texas fields to the Seaboard, preferably from Baton Rouge to Norfolk.
14.	Industry Committees
The General Counsel, Mr. O’Brian, reported that he is working on the problem of how best to implement the operations of industry committees under his arrangement with the Attorney General as reported at the last meeting (Minutes, 4—29—41, Paragraph 6), and he expects to be able to report on this matter shortly to the Office of Production Management.
15.	Subversive Activity in Defense Production
The Director General reported that he has information concerning subversive activity in defense production which might slow down the defense program. The General Counsel said that Mr. L. M. C. Smith, Chief of the Special Defense Unit of the Department of Justice, had consulted him about the same problem. The question of the need for additional legislation was raised, but it is not clear that it would solve the problem if it could be obtained. It was agreed that:
Mr. Hillman will give further consideration to this matter, and Mr. O’Brian will continue to keep in touch with the Special Defense Unit of the Department of Justice concerning ways and means of solving this problem.
16.	Sabre Engine Experimental Plant
The Director General requested Under Secretary Patterson to notify him in case the War Department decided to adopt the Sabre type airplane engine. He recommended in that event a small plant first be built for the construction of 150 engines on an experimental basis to iron out production problems and to enable the Army to determine whether a larger program of production of engines of this type would be justified.
17.	Synthetic Rubber
The problem of production capacity for synthetic rubber was discussed, and it was felt that it is insufficient. It was agreed that:
The synthetic rubber production facilities should be increased beyond the program now planned by the Reconstruction Finance Corporation.
18.	Automobile Production Allotment Program
The Director General reported on the effect of the agreement with the automobile industry (Minutes,
19
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
4-29—41, Paragraph 14 (3)) on the allotment of motor vehicles to be manufactured in the year August 1, 1941 to July 31, 1942 which resulted in the final total alloted amount of 4,224,152 against 5,289,972 manufactured in the preceding year, or a reduction of 1,065,820 units equalling 20.15%. The official announcement made May 3 by the Office of Production Management concerning this allotment is included as Doc. 27a.
19.	Expansion and Speeding Up of Machine Tool Manufacture
The Director General reported on a letter which he and Mr. Hillman had received from the President concerning the urgent necessity of expanding and
speeding up the manufacture and use of critical machine tools (Doc. 29).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, May 13
The following members of the Council were present:
The Director General, the Associate Director General, the Under Secretary of War, and the Secretary of the Navy.
There were also present Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Subcontracting Policy
The Associate Director General, Mr. Hillman, recommended the adoption of a statement of policy designed to stimulate defense production and to utilize more effectively all available industrial capacity by an increased amount of subcontracting. The statement, which follows, was approved as submitted.
1.	It is essential that the defense load be distributed more widely than at present.
It is apparent from such surveys as have been made that there is still available a large amount of unused machine capacity and unused labor supply. An analysis of a sample of reports from 1,000 metalworking plants collected by the State of New York shows that, in this State alone, as of April 15, there was a loss of 134,500 machine hours every day because of non-use of existing machine equipment. A cursory examination of schedules from other plants in the State of New York gives evidence that similar losses of machine time are being incurred in six thousand other metal-working plants in that State.
Every step should be taken to make use of available machine resources at the earliest possible moment.
2.	It is imperative that the Army, the Navy, and the Maritime Commission establish a definite policy that will insure maximum subcontracting of the defense load.
This can be done only by adopting a policy which will, if necessary, compel prime contractors to subcontract part of their orders. Unless other methods can be effectively invoked, it is recommended that one of the conditions of every prime contract negotiated by the various defense agencies of the government shall be that the prime contractor shall sub-contract a certain percentage of the work to be done, varying with the nature of the product.
3.	Each Defense Contract Service regional office should have attached to it an Industry Committee consisting of prominent and able industrial production executives.
Preferably these executives should be from plants that now have defense contracts. Their experience, counsel, and advice would thus be available both to the OPM staff and to the prospective contractors or sub-contractors, who have problems which need solution.
The local industry Advisory Committees of the OPM could also serve as liaison groups with local Chambers of Commerce and labor organizations which have particular interest in securing subcontracts or are concerned with problems arising from priorities, expansion of facilities, labor training, etc.
These committees will be in addition to the Labor Advisory Committee now existing.
4.	A Special Committee on Defense Sub-contracting consisting of Messrs. Knudsen, Hillman, Biggers,
20
MAY 6 AND 13, 1941
Nelson, Stettinius, and Batt, together with representatives of the Army, Navy, and Maritime Commission, will be appointed to be responsible for putting this policy into effect.
2.	Additional Capacity for Synthetic Rubber
The Director General, Mr. Knudsen, reported, in connection with the discussion at the last meeting (Minutes, 5-6-41, Paragraph 17), that he had recommended to Mr. Jesse Jones an increase in synthetic rubber production facilities by the construction of four plants of 10,000-ton capacity each or a total of 40,000 tons a year. The present capacity—actually Only on a laboratory basis—is four plants of 625 tons each or a total of 2,500 tons a year. It was pointed out that the cost of synthetic rubber is approximately twice that of natural rubber, but the establishment of commercial-sized units which could expand in case of future shortages is recognized as necessary. After discussion it was agreed that :
The Office of Production Management concurs in the action of the Director General in recommending the expansion of the production facilities for synthetic rubber to a 40,000-ton capacity program.
3.	Expediting Funds and Contract Appropriations
The Director General, Mr. Knudsen, submitted a recommendation of Mr. John D. Biggers, Director of the Production Division of the Office of Production Management, (Doc. 30), that the Army, Navy, and Maritime Commission review their programs for 1943 with a view to permitting further advanced planning of production facilities and materials required. After discussion it was agreed that :
The Army, Navy, and Maritime Commission are hereby requested by the Office of Production Management to review their ascertainable advance requirements for the fiscal year 1943 in order that estimates may be prepared and, if necessary, legislation drafted for appropriations and authorizations permitting advanced production of predictable items. The Army will give particular attention to future planning of ordnance items in addition to those required for a 2,000,000-man Army; and the Navy will study ammunition and other possible requirements and report its findings to the Office of Production Management.
4.	Patents
The General Counsel, Mr. O’Brian, reported that so far he has not received any evidence which convinces him of the necessity for requesting legislation on patents. He will continue to follow the matter and will report back in the event of a change in the situation. Mr. Amberg, Special Assistant to the Secretary of War, mentioned the fact that the War Department is considering a draft of a general requisitioning statute which would include the right to seize patents.
5.	Truman Investigation
Mr. Amberg and Mr. O’Brian reported on the status of the Special Senate Committee to investigate the defense program. After the first week’s hearings of the testimony of the Secretary of War, the Secretary of the Navy, the Chief of Staff, and the Director General and Associate Director General of the Office of Production Management, the Committee has been largely preoccupied with the details of cantonment location and construction. Yesterday, Mr. Batt of the Division of Production of the Office of Production Management testified on aluminum production ; further witnesses will be called on aluminum and magnesium production. The Committee will probably investigate the matters of machine tools, shipping, aircraft, and the problem of spreading out industry and contracts to smaller centers. Interrogation in the field of witnesses on these subjects is proposed. The investigation is proving to be more detailed and of longer duration than had been anticipated.
6.	Labor Situation—General Discussion
Mr. Hillman expressed the opinion that further increase in wages would occur until such time as the cost of living is stabilized; and that more stoppages can be prevented by recognizing this fact in wage policy than by resisting demand for reasonable increases in wage rates. He pointed out that the 10% increase in steel wages and reports of increased earnings of corporations are creating a demand for wage increases in other industries. Questions were raised whether each concession would not lead to further demands. The general consensus was that the wage problem needs to be studied as a whole. In order to prevent stoppages of defense production and to keep down spiraling of wages and prices, a general wage policy needs to be adopted by the Government which will be fair to both labor and industry.
7.	Labor Mediation Board Progress Report
The Secretary, Mr. Emmerich, obtained permission to attach Doc. 19a, Report of Progress of the National Defense Mediation Board, to the Minutes.
8.	Distribution of Weekly Statistical Reports
The Secretary reported he is instituting the following precautions with respect to Part I, the confidential part, of the Weekly Summary of Defense Progress issued by the Bureau of Research and Statistics (Minutes, 5-6-41, Paragraph 7).
1.	The list of recipients will be restricted to the following agencies and only to those certified by the heads thereof to the Secretary of the Office of Production Management.
White House
Liaison Office for Emergency Management Bureau of the Budget
War Department
21
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
Navy Department
Office of Production Management
Office of Price Administration and Civilian Supply
2.	Copies will be delivered only on signed receipt and all receipts will be maintained by the Bureau of Research and Statistics.
3.	Typing and reproduction will be strictly controlled.
9.	Precautions in Handling Confidential Material
Under Secretary Patterson called attention to the danger of dissemination of important military information as evidenced by the aircraft data appearing in Pearson and Allen’s column of the Washington Times-Herald of May 6, and suggested that all possible precautions be taken in the circulation and reproduction of confidential material.
10.	Exemption from the Walsh-Healey Act of Certain Canned Goods Required by the War Department Under Secretary Patterson reported that the War Department is seeking to purchase certain vegetables and fruits in large cans in advance of the season, but the canners themselves will not bid on War Department contracts on account of the requirements in the Walsh-Healey Act26 that time-and-a-half be paid for overtime. On this account the Quartermaster Corps is compelled to deal with speculators and to purchase uneconomically in small containers. He also pointed out that the War Department competes with the Department of Agriculture which is purchasing for British requirements under the Lend-Lease Bill and which is exempt in these purchases from these Walsh-Healey Act requirements. After discussion it was agreed that :
The Office of Production Management endorses the proposal of the War Department to secure an exception from the Department of Labor from the
28	Public Law 846, 74th Cong., 2d Sess., June 30, 1936.
provisions of the Walsh-Healey Act requiring time-and-a-half for overtime in the perishable and seasonable fruit and vegetable industries during the canning season of 1941.
1L Plant Site Board
The Secretary submitted a proposed Regulation No. 6 (Doc. 31), establishing a Plant Site Committee in the Office of Production Management and defining its duties and functions, in conformity to the resolution passed by the Council (Minutes, 3-17—41, Paragraph 4). He stated this Regulation had the approval of the General Counsel and the Director of Purchases of the Office of Production Management, the War Department, the Navy Department, and the Reconstruction Finance Corporation. A report from Mr. Donald M. Nelson on the progress of the Plant Site Committee is inserted as Doc. 31a. On the suggestion of Secretary Knox, the name of the Plant Site Committee was changed to the Plant Site Board, and it was agreed that:
Regulation No. 6, establishing the Plant Site Board in the Office of Production Management, is approved.
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary oj War
Frank Knox
Secretary oj the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, May 20
The following members of the Council were present :
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were Robert P. Patterson, Under Secretary of War ; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy ; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Antiaircraft Guns
In regard to the manufacture of 90-mm. antiaircraft guns and the British requisition for the manufacture of 3.7-inch guns (Minutes, 5—6—41, Paragraph 3), Under Secretary of War Patterson reported that he has taken this up with General R. C. Moore, from whom he expects a report shortly.
2.	Transport Planes for Britain
The Director General, Mr. Knudsen, reported that he had received a letter from Under Secretary Patter-
22
MAY 13 AND 20, 1941
son dated May 16 (Doc. 32) clearing the way to supplying the need of the British for more transport planes without interfering with the production of South American transport planes or of other types of planes (Minutes, 5-6-41, Paragraph 6).
3.	Expediting Funds and Contract Appropriations
A communication dated May 1727 (Doc. 30a) from Mr. John D. Biggers, Director of Production of the Office of Production Management, was read concerning his meeting the previous day at the War Department with Under Secretary Patterson, the Chief of Staff, Mr. W. L. Batt of the Office of Production Management, and others on the problem of increased contract placement. The Director General pointed out that it appears from Mr. Biggers’ letter that there is still $11.6 billion in business unplaced and appropriations pending and contemplated for the Army in addition to approximately $3 billion under the Lend-Lease program, making a total of $14.6 billion in orders still to be placed, which is a substantial source of increased volume for industry.
Under Secretary Patterson undertook to continue his conversations with Mr. Biggers and Mr. Batt with reference to the problem of increased contract placements. As soon as practicable, he will see that Mr. Knudsen is supplied with a detailed schedule of these proposed appropriations analyzed in the same manner as the Lend-Lease requirements schedule.
4.	Machine Tool Committee
The Secretary of the Navy submitted a memorandum from Rear Admiral W. H. P. Blandy, Chief of the Bureau of Ordnance, and also a suggestion from Captain E. D. Almy of the Shore Establishment Section. Admiral Blandy’s suggestion is as follows :
Greater use of existing machine tools for defense purposes
1.	For months I have been stressing the urgent need of effective short range antiaircraft weapons, especially for both naval and merchant vessels in the Atlantic. I visited Detroit this week and found that both the Pontiac and Hudson Motor Car Companies, which have contracts for manufacturing the Oerlikon 20-mm. antiaircraft gun, are all set to start manufacture as soon as they receive the remaining machine tools.
2.	Upon my return I moved these two companies up to the very top of my preference list (there were in the urgent group and near the top of it already). I then held a conference with all the machine tool people concerned in the Navy Department and OPM, and really believe we will get somewhere with this gun and its ammunition this summer. All tools needed for Pontiac to start manufacture will be shipped from the tool builders by June 1, and Hudson’s tools will not be far behind.
27 Correct date: May 16.
3.	An important point about this transaction is that in forcing these companies to the front I merely played checkers with other companies and other Government bureaus and departments, without increasing the over-all machine tool supply. I had occasion to talk with Mr. Harry Hopkins at the White House yesterday, and he asked me if I had any general ideas on furthering National Defense as a whole. In reply I strongly recommended that the OPM be authorized, and required, to purchase machine tools now in use on nondefense articles and transfer them to defense plants, in all cases where it would not be practicable to use them in place by subcontracting. I have been assured by the OPM machine tool people that thousands of tools could be obtained in this way. Of course, there would still be many special tools required for armament manufacture, but if standard tools such as lathes, milling machines, grinders, etc., can be thus procured in large numbers, the machine tool builders can produce faster the special tools not already in existence.
4.	I am sure many big companies would be willing to shut down completely certain departments now manufacturing luxury articles if pressure were put on them to do so, and all their competitors were required to do likewise. A Vice-President of the General Electric Company strengthened this belief just a few days ago, so far as his company was concerned.
5.	It would not be necessary in some cases to throw men out of work, or even to cut production of the non-defense article. As Mr. Hopkins suggested, by working two or three shifts instead of one, many companies making non-defense material could continue full production with approximately half their present tools.
Captain Almy’s suggestion, from which the following paragraphs are cited, is for combined Army-Navy preference list of contractors in the order in which they should receive machine tools needed for military purposes.
Authorities in the Office of Production Management are strongly of the opinion that a combined Army-Navy preference list of contractors is essential if they are to deliver machine tools as required by our military objectives. Six weeks’ experience with the Navy list in the hands of the Office of Production Management indicates it cannot be effectively used since it is not coordinated with the two Army lists. Gratifying progress has been made in a very restricted field, but no action has been, or can be, taken to schedule the great volume of deliveries by any well-integrated plan. The governing factor of tool delivery is the date of order. This obviously defeats priorities as well as planning.
It is my opinion that this matter is basic and that the Army and Navy must get together on the mat-
23
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
ter of machine tools. Failure to do so will most certainly jeopardize the attainment of the priority of joint objectives and, to a large extent, nullify and pretense of Army-Navy coordination.
Mr. Knudsen pointed out that if priority ratings are granted with respect to critical tools of a nonstandard variety and not to standard tools, then the contractor himself has to find the latter, and subcontracting will be stimulated. After a full discussion of the critical machine tool situation, it was agreed that :
The Director General shall request a report from Mr. Mason Britton, Chief of the Tools Section of the Production Division of the Office of Production Management, and will circularize this to the Council of the Office of Production Management. Unless this report indicates the wisdom of another course, in which case a special meeting of the Council will be called, a three-man committee consisting of Mr. Britton, an Army officer (probably Colonel Thomas J. Hayes), and a Navy officer (probably Captain E. D. Almy), will be appointed to act as a top board on critical machine tools. The Committee will act as a coordinating body on machine tool problems. It will direct the collection of informal tion concerning plants having tools available and ready to take defense contracts and will transmit such information to the contracting officers and the Defense Contract Service of the Office of Production Management.
5.	Subcontracting Policy
The Associate Director General reported that, on his trip to the Chicago area, Mr. William Homer Hartz, Coordinator of the Defense Contract Service in that region, told him that about one-half the capacity in skilled labor and industrial facilities of the Chicago region is being used.
A communication was read from Mr. W. L. Batt, Deputy Director of Production of the Office of Production Management, (Doc. 33),28 transmitting a draft of a directive which he and Under Secretary Patterson had considered and which he believed should be issued to the Chiefs of Supply Arms and
88 Memorandum, W. L. Batt to W. S. Knudsen, May 20, 1941.
The memorandum transmits a proposed directive the. objectives of which it summarizes as follows: Since it is not practicable to fix a specific percentage of subcontracting when the prime contract is drawn, the proposed directive provides direct contact between the District Procurement Office of the War Department and the Defense Contract Service of the Office of Production Management, requires the prime contractor who does not have adequate machinery to .fill the contract to file a list of components available for subcontracting, and forbids the authorization of new facilities without a full study of existing subcontracting facilities.
The proposed directive, from Under Secretary Patterson to the Chiefs of Supply Arms and Services, in addition to stating the above-mentioned objectives, outlines the procedure to be followed to implement the program. It provides for a liaison officer or qualified civilian to make available to prime contractors information already on file in District Procurement Offices and in field offices of the Defense Contract Service of the Office of Production Management on subcontracting facilities. It further provides that contracting officers shall request each prime contractor at present , at work on a contract and unable to complete his contract to file a list of components that might be subcontracted and shall require each future contractor to submit one list designating components for which he already has adequate subcontracting facilities and another list for which sources of supply must still be located.
Services as the next step in implementing the subcontracting policy. It was agreed that:
The Office of Production Management approves the contents of Under Secretary Patterson’s proposed directive to the Chiefs of Supply Arms and Services in the Army (Doc. 33) as the next to be taken in connection with the stimulation of subcontracting and recommends consideration of adoption of a similar directive by other services.
6.	Stockpile Requirements
The Director General reported on the present stockpile situation and indicated that it is no longer practicable to proceed on the basis of one year’s estimated requirements. After discussion it was agreed that:
It is the policy of the Office of Production Management that the stockpile program be increased from a one-year to a three-year supply basis; that every effort should be made to expedite stockpile deliveries ; and that the Services will review their requirements.
7.	Additional Facilities for Production of Certain Types of Steel and Heavy Forgings
Secretary Knox reported Admiral W. H. P. Blan-dy’s statement concerning the increased needs for production of certain types of steel and heavy forgings. The Director General suggested that Secretary Knox submit Admiral Blandy’s comments to Mr. G. F. Hocker, Consultant on Iron and Steel in the Industrial Materials Branch of the Office of Production Management, who has been meeting with the Steel Industry Advisory Committee. x
8.	Shipbuilding Situation—Pacific Coast
The Associate Director General reported that, in the Pacific Coast shipbuilding situation, he has taken the position that the unions which have signed the agreement made under the auspices of the Shipbuilding Stabilization Committee, governing the Pacific Coast Shipbuilding industry, should be held thereto. He stated that the Bay Cities Metal Trades Council was one of the signatories'. Mr. Hillman also reported that Mr. John P. Frey, president of the Metal Trades Department of the American Federation of Labor, is supporting this policy. It was agreed that:
The Office of Production Management approves and supports Mr. Hillman’s policy and Mr. Frey’s action in requiring compliance with the Pacific Coast agreements, and, if further action is necessary, Mr. Hillman should request a special meeting of the Council to consider what steps are to be taken.
9.	Industry Advisory Committees
The General Counsel, Mr. O’Brian, reported that, in accordance with the procedure described in the let-
24
MAY 20 AND 29. 1941
ter of the Attorney General to him dated April 29, 1941 (Minutes, 4—29-41, Paragraph 6, Document 22), a number of Industry Advisory Committees are being formed in the Office of Production Management, and he now requests approval of a procedure authorizing their establishment in the Office of Production Management and prescribing conditions for their creation and operation. It was agreed that :
The procedure for Industry Advisory Committees is approved as submitted (Doc. 22a).
10.	Non-Reimbursement Certificates
The Director General pointed out that there has been a delay in passing on Certificates of Non-Reim-bursement under the Revenue Act of 1940. On May 17, 1941, 1,421 applications covering 20,441 individual contracts had been filed. Only 15 applications had been denied on merit ; 49 have been withdrawn ; and 20 have passed the Army and Navy but not the Advisory Commission to the Council of National Defense. Under Secretary Patterson pointed out that the War Department has submitted 17 cases to the Advisory Commission to the Council of National Defense for processing and is awaiting a decision before submitting the rest of the docket. He expressed the opinion that the Review Group of outstanding citizens, which has been established in the War Department, will form a good basis for the Army’s procedure. General dissatisfaction was voiced with the delay on the part of the Advisory Commission to the Council of National Defense and the diffusion of responsibility for passing on Certificates in connection with the Revenue Act of 1940. The Advisory Commission to the Council of National Defense has no other function now except to pass on these Certificates. The Bureau of the Budget has requested the Office of Production Management to make a suggestion on this point, as it desires to suggest legislation which will make it possible to abolish the Advisory Commission to the Council of National Defense. It was agreed that :
The General Counsel of the Office of Production Management will make recommendations designed to eliminate the Advisory Commission to the Council of National Defense and will study the administration of passing on Certificates in connection with
the Revenue Act of 1940 in an attempt to expedite this procedure.
11.	Priorities for Electric Power in Connection with Aluminum Production
The suggestion was made that legislation be requested of Congress authorizing the Government to use priorities powers specifically in connection with electric current production in order to permit the Tennessee Valley Authority and other bodies to give priority on supply of prime power to aluminum producing agencies which are now deterred from receiving it by consumers having firm contracts. It was agreed that:
The Office of Production Management requests its General Counsel to investigate the matter and to report on the need for and form of legislation to permit use of priorities powers in respect to electric current.
12.	Production Planning Board
The Secretary placed on file a report of the Production Planning Board (Doc. 34) which was requested by the Council on April 29 (Minutes, 4—29-41, Paragraph 10).
13.	Labor Mediation Board
The Secretary placed on file a list of the cases settled during the past week by the National Defense Mediation Board (Doc. 19b).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of Wdr
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 10:00 a.m., Thursday, May 29
The following members of the Council were present:
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were Robert P. Patterson, Under Secretary of War; Julius H. Amberg, Special Assistant to the Secretary of War ; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
25
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
1.	Antiaircraft Gun Program
The Secretary of War reported that additional sources for the 37 mm. gun are required. On the 90 mm. gun, there are approximately twelve hundred on order. The War Department is still studying its enlarged program on this item and may increase its order to three thousand.
Under Secretary Patterson will inform Mr. Knudsen of the final decision of the War Department as to its increased program on the 37 mm. and 90 mm. antiaircraft guns.
2.	Powder Program
It was generally agreed that the powder production program is in good shape. Seven loading plants are preparing for production, and there will be three lines producing on July 1, eight more on August 1, four more on September 1, and four more between October and November. By the end of the year, production of about thirty-five million pounds a month is estimated.
3.	Small Arms Ammunition
The Director General, Mr. Knudsen, mentioned the importance of expediting the small arms ammunition program. The eventual capacity will be fifteen million a day of thirties and three million a day of fifties.
4.	Shortage of Labor in Defense Industries
The Director General reported that he had received a letter from the President pointing out the shortage of labor in defense industries, particularly on second and third shifts, and requesting the Office of Production Management to arrange transfers of workers on leave from non-defense industries to defense industries. It was agreed that :
The President shall be advised that his letter with reference to threatened shortages of labor in defense industries has been referred to Mr. Hillman with power to act. and the Labor Division of the Office of Production Management will take the necessary action to carry out his suggestions.
5. Machine Tools
The Director General reported that he had re-
ceived a letter from the President in which it was suggested that machine tools used for consumer goods
industries be released and placed on defense work due to the shortage of machine tools in defense industries and requesting that the Office of Production
Management take action on this matter. In view of the fact that the Office of Production Management has recently taken steps to appoint a committee on machine tools and has obtained information concerning available machine tools throughout the country which could be shifted to defense industries, it was agreed that :
The President shall be informed concerning the steps which have recently been taken with regard to the machine tool situation, and that these steps will enable the Office of Production Management to achieve the objectives in regard to tools which he has in mind.
With further reference to the machine tool situation (Minutes, 5-20-41, Paragraph 4), Under Secretary Patterson reported that the Army and Navy have agreed on a single list on machine tool priorities which has been referred to the Army and Navy Munitions Board for scheduling and for final clearance on Lend-Lease problems with General Bums’ office (Office of Defense Aid Reports).
The Director General reported that the Committee consisting of Mr. Mason Britton, Colonel Thomas J. Hayes, and Captain E. D. Almy, had been appointed to work on the machine tool problem.
6.	Expediting Funds and Contract Appropriations
With reference to the problem of expediting funds and contract appropriations (Minutes, 5-20-41, Paragraph 3) and Mr. John D. Biggers’ letter dated May I729 (Doc. 30a), Under Secretary Patterson stated that the figures in Mr. Biggers’ letter are being rechecked by the War Department, as they cannot be reconciled with the War Department’s records, and that he will shortly send a corrected schedule to the Office of Production Management.
The Director General suggested that, while there is sufficient work ahead in aircraft and shipping to put a real load on those industries, the problem is how to increase the ordnance program sufficiently to do the same. He believes it should be expanded to accomplish this from approximately two billion dollars to six billion dollars. The Under Secretary of War stated that this matter is receiving the active attention of the War Department, and that he expects shortly to be in a position to make a recommendation on an advanced ordnance program.
There was a discussion of the Navy Ordnance program, particularly with regard to the Oerlikon and Bofors guns, and the question was raised of whether it would not be advisable to double the existing orders on these items.
Secretary Knox will explore the problem of increasing the program for Oerlikon and Bofors guns in the Navy Department and report his findings and recommendations to the Office of Production Management.
Secretary Stimson indicated that the production of guns, especially antiaircraft guns, should be increased because of the length of time required to produce them, and that the production schedule for guns should hereafter be determined on the basis of production capacity and not limited as at present by a formal ratio of guns needed for a certain number of men contemplated in Army estimates.
28 Correct date: May 16.
26
MAY 29, 1941
7.	Subcontracting Policy
Secretary Knox stated that the Navy Department is examining the draft of Under Secretary Patterson’s memorandum to the Chiefs of the Supply Arms and Services in connection with the stimulation of subcontracting (Minutes, 5-20-41, Paragraph 5, Document 33), and that he will report in the near future whether or not a similar policy will be adopted by the Navy Department.
8.	Requisitioning Statute
The General Counsel, Mr. O’Brian, reported that Mr. Wayne Coy of the Office for Emergency Management had asked the Office of Production Management for its opinion on the draft of a requisitioning statute (Doc. 35). It was his understanding that the Army, Navy, Treasury, Justice, and Office of Price Administration and Civilian Supply had approved the statute. He thought that the President’s present power to requisition should be substantially enlarged and pointed out particulars in which this would be helpful to the Office of Production Management. He called attention, however, to the extraordinarily broad sweep of the proposed statute and suggested the advisability of limiting the power of seizure to cases in which the President should find that there was a shortage or impending shortage, or a stoppage or impending stoppage, etc. He also thought that the bill was so broad in its grant of power that it would arouse opposition and cause unnecessary anxiety.
Under Secretary Patterson strongly urged the present importance of this statute. He felt that any request for modification of language would only serve to delay its introduction further, and that there was sufficient evidence of blocking of • defense requirements by civilian owners of planes as well as in the fields of shipping and of machine tools to warrant its immediate passage.
Secretary Stimson and Secretary Knox said they would not object when this bill came up in Congress if a modification of its language were made which would require a finding of actual or pending shortage before requisitioning is invoked. Nor would they object to an exception to its provision being made in cases which could be handled by use of Section 9 of the Selective Service and Training Act of 1940. After discussion it was agreed that:
The Secretary shall inform Mr. Wayne Coy, Liaison Officer for Emergency Management, that the Office of Production Management approves the draft of a requisitioning statute submitted by him.	■
9.	Price Legislation
The Secretary reported on a conference on May 23 with Mr. Leon Henderson, Price Administrator, regarding a proposal under consideration by the
President to send up a message to Congress on comprehensive price legislation. The Secretary’s report is attached as Doc. 36.
10.	Executive Order Concerning Priorities Act, Public No. 89
The General Counsel reported that the Priorities Bill (H.R. 4534)30 has been passed in the form recommended by the Office of Production Management without the Cox Amendment. The President will issue an Executive Order as contemplated thereunder designating the agencies which will administer the authority set forth in that act. The Budget Bureau has drafted an Executive Order which includes a provision for the equitable distribution of the residual supply of materials and commodities among competing civilian demands after satisfaction of military needs. There is a difference of opinion between representatives of the Office of Production Management and the Office of Price Administration and Civilian Supply as to the language which should be used to define their respective roles in regard to this function.
The language, which had been approved by Mr. Henderson covering this point and designated as Draft No. 1, is as follows: “The Office of Production Management shall, upon the recommendation of the Office of Price Administration and Civilian Supply, take all measures within its authority to implement such policies, plans and programs.”
The language suggested by the representatives of the Office of Production Management, designated as Draft No. 2, is as follows: “and upon request of the Office of Price Administration and Civilian Supply, the Office of Production Management shall take all measures which deems necessary or appropriate (within the scope of the powers granted to it by said Executive Order 8629, this Executive Order, and Section 2(a) as amended) to carry out all policies so determined and all plans and programs so formulated
In the discussion on this point, it was pointed out that Draft No. 2 more nearly carries out the policy of the Office of Production Management as reflected in the Minutes of the Meeting of April 3. After discussion it was agreed that:
The Office of Production Management recommends the adoption of Draft No. 2 of the proposed Executive Order delegating powers under the Priorities amendment and that the Secretary be instructed to so notify Mr. Wayne Coy.
10.	Tax Certification31
The General Counsel reported that the Army and Navy are drafting a bill on the problem of tax certification under the Revenue Act of 1940, and that it would be ready for consideration at the next meeting of the Office of Production Management.
80	Public Law 89, 77th Cong., 1st. Sess., May 31, 1941.
81	The duplicate numbering of this ana the preceding item conforms to the original minutes.
27
700598—46—3
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
11.	Certificates of Non-Reimbursement
Minor changes have been made in the policy on Certificates of Non-Reimbursement of the Advisory Commission to the Council of National Defense, and a corrected copy of the policy statement, dated May 7, 1941, is attached as Doc. 25a.
12.	Appointment of Deputy Director of Priorities
The Secretary reported that the appointment of Mr. James L. O’Neill as Deputy Director of the Division of Priorities has been approved by the President.
13.	Organization Charts
The following revised organization charts are attached to the Minutes: Office of Production Management (Doc. la) ; Production Division (Doc. 2c) ;
Purchases Division (Doc. 3d) ; Priorities Division (Doc. 4j); and the Bureau of Research and Statistics (Doc. 18a).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, June 3
The following members of the Council were present:
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were Robert P. Patterson, Assistant Secretary of War; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Subcontracting
Mr. Dulles, Special Assistant to the Secretary of the Navy, reported that the Chiefs of the Bureaus of the Navy have met with Mr. Robert L. Mehornay, Chief of the Defense Contract Service of the Office of Production Management, to discuss subcontracting and are considering the adoption of a directive as nearly similar as practicable to the one issued by the War Department (Minutes, 5-20-41, Paragraph 5, Document 33). They expect to reach a conclusion in the near future.
2.	Priorities in Regard to Electric Power
The General Counsel reported that, in his opinion, there is no present need for further legislation in regard to electric power priorities. The authority now vested in the Federal Power Commission and under Section 9 of the Selective Service and Training Act of 1940 is, he believes, adequate to meet all foreseeable needs.
3.	General Priorities Powers
The Secretary reported that Mr. Stettinius, Director of Priorities, urges prompt action to centralize the scattered priorities functions of numerous governmental departments. It appears that there are certain priorities powers in the Interstate Commerce Commission, the Federal Power Commission, the Maritime Commission, and other agencies. It was agreed that :
The Office of Production Management recommends the central clearance of priorities through its Priorities Division, regardless of where such authority is now vested in the Government, and requests its General Counsel to study this problem and to make a recommendation on the manner in which this objective may be accomplished.
4.	Increased Requirements Program
The Director General referred to a letter from the Secretary of War dated May 28, 1941 (Doc. 37) and to a letter from the Under Secretary of the Navy dated May 29, 1941 (Doc. 37a) regarding their respective increased requirements programs. The Secretary of War reiterated that he is not interested in the construction of new facilities or in the piling of new orders on top of present orders which could not be scheduled for delivery before the end of 1942. He is eager to increase the program and believes that to obtain prompt results, it will be necessary to convert facilities now employed on civilian manufacture to defense production.
28
MAY 29 AND JUNE 3, 1941
On behalf of the Office of Production Management, the Director General undertook to assist this program in every way as soon as definite schedules are received ; to split orders as much as necessary and to place them with a view to maximum speed of output; to advance the construction of new facilities wherever needed ; and to prevent piling up of new orders on top of old ones except in plants in which present contracts are running out in the near future. He further undertook to see that the Office of Production Management cooperates with the Ordnance officers in preparing Letters of Intent in order that the new work may be gotten underway speedily. Mr. Knudsen requested that the Army and the Navy supplement as soon as possible their letters referred to above with definite schedules of requirements.
5.	Defense Requirements Appropriated but not Contracted for
Under Secretary Patterson reported that he and Mr. John D. Biggers, Director of Production of the Office of Production Management, had agreed on the figures referred to in Mr. Biggers’ letter of May 17 (Minutes, 5-20-41, Paragraph 3, Document 30a, and 5-29-41, Paragraph 6) amounting to a total of six billion two hundred million dollars which includes three billion eight hundred million dollars of unplaced orders of the War Department and two billion four hundred million dollars of unplaced orders under Lend-Lease to be placed by the Army. However, since then, orders have been placed which bring the balance nearer to five billion dollars. It is the purpose of the War Department to place all this business if possible by the end of June. Under Secretary Patterson requested that the Purchases Division of the Office of Production Management be instructed to be prepared for clearance on this large volume of business for the remainder of this month.
6.	Tax Certification
Under Secretary Patterson reported that the Army and Navy have been studying the question of legislation needed on tax certification and have agreed on the draft of a bill in which the Advisory Commission to the Council of National Defense is dropped as a clearance agency, the time for filing certificates is extended, and the government protection statement is clarified. It was agreed that:
The Office of Production Management will not take the initiative in this matter but will support the recommendations of the Army and Navy as outlined above.
7.	Torpedo Production Facilities
The Secretary referred to a letter received from the Secretary of the Navy in regard to torpedo production facilities, summarizing it as follows :
(1)	The Navy is seriously short of torpedoes and the deficiency will become increasingly critical.
(2)	Only two plants now make torpedoes for the Navy; as the capacity of these plants is inadequate, the Navy needs additional sources of supply.
(3)	Currently torpedoes are being made by one American company for the British, and negotiations with another American company are under way. These plants could be converted into manufacture for the Navy after about six months’ notice.
(4)	The Navy is tentatively negotiating with the American Can Company for the construction and operation of a torpedo plant.
8.	Industry-Wide Preference Orders
The Secretary submitted for the record a report on industry-wide preference orders issued by the Office of Production Management since its establishment (Doc. 38).
9.	Delegation of Representatives from Great Britain of Both Labor and Management
The Office of Production Management approved the following resolution:
The Director General and Associate Director General shall write to the Secretary of State requesting him to transmit through the British Ambassador an invitation for a delegation from British industry, representing both management and labor, to visit the United States and make a tour of defense industries here for the purpose of learning first-hand about defense industrial effort. They would also bring to American management and labor news of the problems and spirit of British industry.
10.	Uniform Strike Statistics
The Associate Director General reported that various agencies of the Government are preparing statistics on strikes and stoppages in defense industries, and some of these are being publicized. He pointed out that the figures do not always provide accurate and uniform statements of the stoppages on defense work. It was agreed that:
It is desirable that the strike statistics prepared, and particularly those released for publication by the Army, Navy, and Office of Production Management, should be uniform. Mr. Hillman will confer with representatives of the Army and Navy with a view to effecting a mutually agreeable arrangement whereby this can be accomplished.
11.	Wage Policies in the Construction Industry
The Associate Director General reported the need for a more coordinated wage and labor policy in the
29
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
construction industry in which conflicting policies are now being laid down. He believes that representatives of all interested agencies of the Government, including the Division of Defense Housing Coordination of the Office for Emergency Management, the Army, Navy, and the Office of Production Management should confer on this subject and develop such a policy. It was agreed that :
The Associate Director General is authorized to call a meeting of the representatives of the Government agencies concerned with the construction industry, with a view to developing a coordinated wage and labor policy.
12.	Production Planning Board
The Director General referred to a recommendation of Mr. John D. Biggers, Director of Production of the Office of Production Management, concerning this subject (Doc. 34a), in which it was suggested that the Production Planning Board now be transferred from the Production Division, as the problems deserving its consideration are broader than those of any single division. Accordingly it was agreed that :
The Production Planning Board, now a part of the Production Division of the Office of Production Management, is transferred from that Division in accordance with the recommendation of the Director of Production, and that there is established in the Office of Production Management a Production Planning Board serving all divisions. The size of the Board, its personnel including its chairman, and its operations, shall be determined from time to time as circumstances require by the Director General acting in association with the Associate Director General. The function of the Board will be to prepare reports on production planning including recommendations as required from time to time by the Council, the Director General, the Associate Director General, and the Directors of the Divisions of the Office of Production Management. Assignments to and reports from the Production Planning Board will be cleared through the Secretary of the Office of Production Management.
13.	Daylight Saving
The Secretary reported that requests had been received from the Bureau of the Budget and from Congressman Clarence F. Lea, Chairman of the Interstate and Foreign Commerce Committee of the House of Representatives, for recommendations on the subject of a national daylight saving bill. He reported that, since the last war, when daylight saving was in effect on account of the shortage in power, the sixteen states which already have daylight saving through state or city legislation account for over 50% of the total prime defense contracts awarded
and over 60% of the Nation’s industrial output. Of the thirty-two states which do not have daylight saving, only six are important on the basis of defense contracts or industrial output. The defense industries in these six states are very largely airplane and shipbuilding which operate on multiple shifts and overtime.
The Office of Production Management has requested the Federal Power Commission to include the problem of national daylight saving in its study of the power situation, and the Secretary will report to the Council on its findings as soon as they can be obtained.
14.	Location of a Powder Plant in Carbondale, Illinois
Under Secretary Patterson reported that the Army has come to the conclusion that there is not sufficient water available in Carbondale, Illinois for the location of a powder plant there. In view of previous statements to the Advisory Commission to the Council of National Defense, Mr. Patterson agreed to confer with Mr. Hillman on this matter before final decision is reached.
15.	Oerlilcon and Bofors Guns
The Secretary of the Navy presented Admiral W. H. P. Blandy’s survey on this subject, which is as follows:
A survey of the ultimate requirements of 40 mm. mounts (Bofors) indicates that our existing orders should be increased by 50% each for quadruple and twin mounts (i. e., from 500 to 750 each).
A survey of the ultimate requirements of 20 mm. mounts (Oerlikon) indicates that our existing orders should be increased about 500%, i. e., from 2000 to 10,000.
The above estimates do not include production for the British.
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
30
JUNE 3 AND 10, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building,
The following members of the Council were present :
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy; Julius H. Amberg, Special Assistant to the Secretary of War ; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Shortage of Railroad Cars
In connection with the impending shortage of railroad cars and the need for 178,000 additional freight cars, the Secretary of the Navy suggested that investigations be made of the possibility of the railroads building these cars in their own repair chops. The Director General mentioned the proposal of Mr. Ralph Budd, Transportation Commissioner of the Advisory Commission to the Council of National Defense, that the railroads use wooden sides for gondola cars in order to reduce the amount of steel required. Mr. Knudsen undertook to take up Mr. Knox’s suggestion with Mr. Budd.
2.	Priorities Problems and Definition of Functions between the Office of Production Management and the Office of Price Administration and Civilian Supply
The General Counsel explained the effect of the Executive Order creating the Office of Price Administration and Civilian Supply under which the Administrator of that Office claims the jurisdiction of the Office of Production Management is confined to direct military needs, and that jurisdiction over all the rest of production, even if it indirectly affects military requirements, is in the Office of Price Administration and Civilian Supply. This conflict in jurisdiction is making it increasingly difficult to administer priorities and production. The General Counsel introduced a memorandum (Doc. 21b) reaffirming the principles previously adopted by the Office of Production Management designed to clarify the jurisdiction between the two organizations and so insure that administration of priorities is exclusively a function of the Office of Production Management. He also introduced a proposed Executive Order (Doc. 21c) under Public 89 which would accomplish this objective. It was agreed that :
The entire Council of the Office of Production Management shall request a conference with the President at which the principles in the memorandum referred to (Doc. 21b) shall be presented
3:00 p.m., Tuesday, June 10
with a view to effecting a single administration of priorities in the Office of Production Management.
3.	Antiaircraft Guns
Under Secretary of War Patterson reported that the 90 mm. gun is the standard type adopted by the Army and that no 3.7-inch guns are being made here but are being manufactured in Canada.
4.	Sabotage Legislation
The General Counsel presented a draft of a bill (Doc. 39) designed to strengthen the statutory provisions against sabotage.
The General Counsel also reported that the Attorney General is considering the creation of a Board of Review of three disinterested persons of high qualifications to examine cases in which workers have been discharged or are proposed to be discharged from plants. This Board would be created for the purpose of impartially determining whether there has been a violation of the National Labor Relations Act and whether the discharges are in the needs of national defense.
The sabotage legislation will be considered further and will be brought up in the near future.
5.	St. Lawrence Seaway and Power Project
The Director General presented a letter from the President addressed to the members of the Council of the Office of Production Management dated June 5 (Doc. 40)31 inquiring as to their reaction to the St. Lawrence Seaway and Power Project. After discussion it was agreed that:
The Council favors the proposals (a and b) of the President’s letter.
6.	Proposal to Strengthen the Social Security Board's Control of the State Employment Offices
The Associate Director General presented a proposal by Mr. Arthur J. Altmeyer, Chairman of the Social Security Board, designed to place the Bureau of Employment Security in a stronger position to cope with national defense employment problems. Under this proposal there would be no increase in the pending appropriation of $62,500,000 for the Bureau would be authorized to expend as much of the fund as necessary directly rather than through grants in aid to State Employment Offices. Mr. Hillman endorses Mr. Altmeyer’s proposal as a means of enabling the Bureau of Employment Security to perform its functions more effectively in the whole field of recruiting additional labor supply. It was agreed that:
81 Letter, the President to Members of the Council of the Office of Production Management, June 5, 1941.
The President desires the Council’s reaction to (a) the immediate authorization of the project and (b) the advisability of trying to shorten the construction period below the four years estimated.
31
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
The proposal of the Chairman of the Social Security Board for an amendment to its appropriation permitting direct use by the Federal Government of employment service funds is approved.
7.	Navy Schedule of Essential and Critical Materials
The Under Secretary of the Navy, Mr. Forrestal, agreed to furnish a detailed schedule of essential and critical materials required by the Navy to Mr. Knudsen.
8.	Construction of Smokeless Powder Plants
The Under Secretary of War, Mr. Patterson, stated that smokeless powder plants hereafter will be built on a less permanent basis. The Director General suggested in this connection that a limit in cost per square foot be placed in contracts.
9.	Labor Policy in the Aircraft Industry
Mr. Hillman reported that the workers are returning to work in the North American plant, and the action taken by the Government is having a generally good effect on the West Coast. Mr. Hillman is proposing that, simultaneously with the settlement of the wage question in the North American plant, an industry-wide stabilization agreement be negotiated. This should guarantee at least a year’s settlement for the entire industry. Although the agreement might involve immediate wage increases in some cases, he feels it would be less costly to the Government in the long run and would act, as in the case of the Shipbuilding Stabilization Agreement, as a guarantee of production.
Attached to the minutes are the following documents in relation to the West Coast labor situation:
Resolution of the Labor Policy Advisory Committee of June 6, 1941, regarding West Coast strikes (Doc. 41) ;
Statement by the President and the Executive Order32 authorizing the Army to take over the Los Angeles plant of North American Aviation, Inc. (Doc. 41a);
Statement by the Department of Justice regarding the President’s proclamation referring to the North American Aviation strike (Doc. 41b) ; and Statement by Mr. Sidney Hillman dated June 9, 1941 regarding the North American Aviation strike (Doc. 41c) and
82 Executive Order 8773, June 9, 1941.
Statement by the Selective Service System dated June 9, 1941, regarding the reclassification of defense industry workers who have ceased to perform the jobs for which they were deferred (Doc. 41d).
10.	Discrimination against Negroes in Defense Industries
Mr. Hillman reported on the proposed “March on Washington” by negro organizations to protest discrimination against employment of negroes in defense industries. He stated that he is working on this problem and wants the cooperation of the Army and Navy and of the industries affected.
11.	Office of Production ^Management Activities
The Secretary, Mr. Emmerich, submitted a memorandum to the Council regarding the activities of the Office of Production Management between June 2 and June 9, 1941 (Doc. lb).
12.	Activities of the Office of Price Administration and Civilian Supply
The Secretary submitted to the Council a memorandum regarding the activities of the Office of Price Administration and Civilian Supply between June 2 and June 9, 1941 (Doc. 21d).
13.	Activities of the National Defense Mediation
Board
The Secretary attached to the minutes a statement of the activities of the National Defense Mediation Board between June 2 and June 9, 1941 (Doc. 19c).
14.	Industry-Wide Preference Orders
The Secretary placed on file a list of industrywide preference orders issued by the Division of Priorities from June 1 to June 10, 1941 (Doc. 38a).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, June 17
The following members of the Council were present:
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Sec-retary of the Navy; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John
32
JUNE 10 AND 17, 1941
Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Priorities Problems and Definition of Functions between the Office of Production Management and the Office of Price Administration and Civilian Supply
With further reference to the problem discussed at the Meeting of June 10 (Minutes, 6-10-41, Paragraph 2), the General Counsel reported that conversations had been held between the Director General and the Administrator of the Office of Price Administration and Civilian Supply, Mr. Leon Henderson, with a view to agreeing on a new draft (Doc. 21e) of an Executive Order, under Public 89, which would carry out the policy of the Office of Production Management. This draft is now under consideration by Mr. Henderson, but no final word has been received from him.
2.	Essential and Critical Materials
The Under Secretary of the Navy, Mr. Forrestal, furnished Mr. Knudsen with a memorandum dated June 12 (Doc. 37b) from F. D. Overfelt of the Nayy Department on critical items, in which the essential needs of the several bureaus of the Navy Department are summarized.
3.	Stockpile Program
The Director General reported that he has received from the Materials Branch of the Office of Production Management a revised and enlarged schedule of stockpile items and that he is requesting Mr. Jesse Jones, Administrator of the Federal Loan Agency, to take the necessary steps to purchase these materials through the materials corporations of the Federal Loan Agency. Mr. Knudsen’s letter to Mr. Jones is attached to the Minutes (Doc. 43).
4.	Copper Production
In reply to a question, the Director General stated that the domestic copper production is about a million tons per annum, and under the stockpile program, an additional 500,000 tons is required.
5.	Coal Conservation and Transportation
The Director General stated that he had been in touch with Mr. Ralph Budd, Transportation Commissioner of the Advisory Commission to the Council of National Defense, concerning the suggestions made at the last meeting on the subject of increasing the supply of freight cars.
Attention was called to the fact that, with the increasing production of munitions for shipment to the eastern seaboard, there is a possibility that a transportation congestion will occur by autumn. Mr. Knudsen pointed out that, by enforcing the demurrage regulations and eliminating the accumulation of cars “to order”, much of this congestion could be
avoided. Mr. Hillman suggested that, if government-owned establishments and private consumers anticipate their requirements and stock up with coal now, congestion could be avoided. After discussion it was agreed that :
The Office of Production Management, after clearance with the Secretary of the Interior, will issue a public statement advising large industrial users and other coal consumers to accumulate stocks of coal at the present time. This will aid its production and the transportation of defense articles by relieving the concentration of coal shipments in the late summer and fall months.
6.	Sabotage Legislation
The General Counsel reported that the Department of Justice is continuing to work on the plan mentioned at the last meeting (Minutes, 6-10-41, Paragraph 4) for the creation of a Board of Review in connection with the discharge from plants of workers who are interfering with defense production. He reported he had circulated a draft of proposed sabotage legislation but had not yet received a report thereon from the Department of Justice.
7.	Certificates of Necessity, Government Protection, and Non-Reimbursement
The Under Secretary of the Navy, Mr. Forrestal, reported that the Army and Navy have agreed on an amendment to the Revenue Act of 1940 which would have the effect of eliminating the need of having the Advisory Commission to the Council of National Defense, otherwise inactive, pass on Certificates of Necessity, Government Protection, and Non-Reimbursement.
8.	Price Administration
The Secretary reported that Mr. Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, desires the Council of the Office of Production Management to be informed that the President’s message to Congress, recommending comprehensive legislation for the regulation of prices previously reported on (Minutes, 5-29-41, Paragraph 9) probably will be sent to Congress this week. In connection with the message, Mr. Henderson has been discussing with the leaders of the House and Senate the type of legislation contemplated. He has offered to have the appropriate legislative representatives of the Army and Navy go over the proposals, and for this purpose they should get in touch with the General Counsel of the Office of Price Administration and Civilian Supply.
9.	Aluminum
The Director General reported that the aluminum production program is being increased from one billion pounds per annum to one billion six hundred
33
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
million pounds per annum, and that the additional sources of supply and facilities now being recommended are the Aluminum Company of America in the Bonneville region, 150 million pounds; Reynolds Metals Company in the Arkansas region, 150 million pounds; Bohn Aluminum and Brass Corporation in the Niagara Falls region, 100 million pounds; and Canadian production, 200 million pounds.
10.	Magnesium
The Under Secretary of War, Mr. Patterson, reported that work is actively going forward on plans for six new plants in connection with the expansion of the production of magnesium. Contract negotiations are under way on all of them, and, in several cases, construction has already started.
11.	Dow Chemical Company Strike
The Associate Director General reported that progress is being made in adjusting the labor dispute in the Dow Chemical Company, which is now the only plant making magnesium, an essential and critical material.
12.	Automobile Production
The Director General referred to his report to the Council of the Office of Production Management (Minutes, 4—29-41, Paragraph 14(3), Document 27). He reiterated the fact that the 20% reduction in automobile production already agreed to was only an initial step and stated that the entire automobile production policy would be reviewed on August 1. As defense orders increase, additional cuts in automobile production will be arranged. In this way, as the auto industry goes into its July shutdown period, it can make the necessary adjustments without causing unnecessary unemployment. The next cut, however, cannot be a horizontal one, and will have to be by allocation. He has cautioned the industry to be prepared for additional reductions.
13.	Effect of Priorities on Unemployment
The Associate Director General called attention to the anticipated effect of the issuance of priorities orders on the unemployment situation. Many industries which have not been able to get defense work will be deprived of materials by the priorities system, causing partial and complete shutdowns with subsequent unemployment. From the information available to the Office of Production Management, Mr. Knudsen reported that, to date, there have not been many actual evidences of increased shutdowns due to priorities, but both from the standpoint of its adverse effect on management and on labor, this problem deserves careful attention, and every effort should be made to minimize the maladjustments that impend.
14.	Contemplated Anti-Trust Actions against Sperry and Bendix
It was reported that, in the case of the Sperry Corporation and the Bendix Aviation Corporation which are producing very important defense materials, anti-trust actions are contemplated by the Attorney General’s office.
15.	Discrimination in Employment in Defense Industries
The Associate Director General inserted for the record the letter from the President (Doc. 42) concerning the discrimination in employment of workers, particularly negroes, in defense industries. This letter is receiving appropriate attention from the Office of Production Management.
16.	Office of Production Management Activities
The Secretary placed on file a memorandum of the activities of the Office of Production Management from June 10 to June 17 inclusive (Doc. 1c).
17.	Office of Price Administration and Civilian Supply Activities
The Secretary placed on file a memorandum of the activities of the Office of Price Administration and Civilian Supply from June 10 to June 16 inclusive (Doc. 21g).
18.	Activities of the National Defense Mediation
Board
The Secretary placed on file a memorandum of the activities of the National Defense Mediation Board from June 10 to June 16 inclusive (Doc. 19d).
19.	Industry-Wide Preference Orders
The Secretary attached to the Minutes a list of industry-wide preference orders issued by the Division of Priorities from June 10 to June 16 (Doc. 38b).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
34
JUNE 17 AND 24, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, June 24
The following members of the Council were present:
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were: Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy ; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Priorities Executive Order
It was reported that an agreement has been reached between Mr. Knudsen and Mr. Henderson on a proposed draft of an Executive Order (Doc. 21g) concerning the delegation of authority on priorities to the Office of Production Management and the Office of Price Administration and Civilian Supply under Public 89, and it has been submitted to the Bureau of the Budget. Under this draft the Office of Production Management will determine defense needs, direct and indirect, and the Office of Price Administration and Civilian Supply will thereafter determine the allocation of civilian supply, but all orders to industry will be issued by the Office of Production Management. It was agreed that:
The Council of the Office of Production Management approves the draft of the proposed Executive Order (Doc. 21g) delegating authority under Public 89 to the Office of Production Management and the Office of Price Administration and Civilian Supply.
2.	Establishment of Bureau of Defense Industry Advisory Committees
The Director General reported that procedures have been perfected for the establishment of Defense Industry Advisory Committees and of Commodity Sections within the Office of Production Management. A Bureau of Clearance will be formed in the Office of Production Management to see that there is only one Defense Industry Advisory Committee covering any one industry and to help the Directors of the Divisions in the work of organizing the committees. Reallocation of primary responsibility for commodities among the Directors of Production, Purchases and Priorities is to be made. It was stated that these changes would simplify the relations between industry and the Office of Production Management and with other government departments. The proposals are to be announced to the press in accordance with the press release attached (Doc.! 22b) and
further defined in Administrative Order No. 11 (Doc. 22c), upon approval of the Regulation which was submitted for approval of the Council of the Office of Production Management (Doc. 22d). The Director General said that he had designated Mr. Sidney J. Weinberg as Chief of the Bureau of Clearance of Defense Industry Advisory Committees. It was agreed that:
Regulation No. 7 (Doc. 22d) authorizing the formation of Defense Industry Advisory Committees in the Office of Production Management and regulating their operation, and establishing a Bureau of Clearance of Defense Industry Advisory Committees and prescribing its duties and functions is approved.
3.	Daylight Saving
The Secretary reported that the Chairman of the Federal Power Commission has recommended to the President a plan for power conservation by daylight saving which has been referred to the Office of Production Management for an expression of its views. The recommendation of the Power Commission to the President (Doc. 44) proposes that immediate steps be taken to establish daylight saving time in the southeastern states in which power shortages are impending and that simultaneously, legislation be obtained permitting the President to effect daylight saving from time to time as needed in various parts of the country. After discussion it was agreed that :
The Council of the Office of Production Management strongly endorses the Federal Power Commission’s recommendation that broad federal legislation should be enacted to authorize the establishment of daylight saving and that in the meantime the President take all appropriate steps to establish daylight saving in the District of Columbia and to secure its adoption by the Southeastern States in order to relieve the serious present power shortage in that region.
The Council also recommends that daylight saving be made mandatory during the summer months on a nationwide basis.
4.	Stabilization Committee in the Aircraft Industry
Mr. Hillman reported that he and Mr. William H. Davis, Chairman of the National Defense Mediation Board, jointly endorse an arrangement for the establishment of an aircraft stabilization committee to work out nation-wide agreements between management and labor in the aircraft industry similar to the shipbuilding stabilization committee and they have proposed that Mr. Isador Lubin be Chairman
35
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
of the Committee. Mr. Hillman suggested that the employers be called in immediately and Mr. Knudsen undertook to notify them accordingly. In connection with this committee, Mr. Hillman desires to ascertain how many of the plants are working on more than one shift, as he has reason to believe that there are a great many plants not making full utilization of their machinery and not employing people oh the second shift. It was agreed that:
Mr. Hillman’s proposal for the establishment of an aircraft stabilization committee is approved.
5.	Public Attitude toward the Defense Program
The Secretary of War and the Director General pointed out the need of a greater appreciation throughout the country to increase effort in the defense program. Complacency was reported particularly from the Midwest. A general speed-up is required and also an increased realization by the public of the importance of an intensified effort. The Navy Department has recently adopted a program of providing speakers for public gatherings. After discussion it was agreed that:
The Office of Production Management will request Mayor Fiorello LaGuardia, Administrator of the Office of Civilian Defense, to organize a campaign in defense centers in which the Office of Production Management, the Army and the Navy will cooperate in every way including in the development of programs, in the securing of speakers, and in establishing contacts.
6.	Plant Site Board
The Secretary submitted a chart and a letter received from Mr. Donald M. Nelson, Chairman of the Plant Site Board, (Doc. 31b) concerning the progress made in the decentralization of facilities, particularly in the Midwest.
7.	Priorities Reports
The Director General exhibited charts prepared by the Director of Priorities on the condition of the stockpile program, and the Secretary placed on file
a list of priorities orders issued during the week of June 16 to June 21 inclusive (Doc. 38c).
8.	Contract Clearances
The Secretary reported the receipt of a memorandum from the Director of Purchases which showed that, between June 2, 1941 and June 23, 1941 inclusive, Army contract clearances amounted to $403,986,713 and Navy contract clearances amounted to $1,803,333,590.
9.	Activities of the Office of Production Management
The Secretary placed on file a memorandum of the activities of the Office of Production Management from June 17 to June 24 inclusive (Doc. Id).
10.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a memorandum of the activities of the Office of Price Administration and Civilian Supply from June 17 to June 23 inclusive (Doc. 21h).
11.	Activities of the National Defense Mediation Board
The Secretary placed on file a memorandum of the activities of the National Defense Mediation Board from June 17 to June 23 inclusive (Doc. 19e).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, July 1
The following members of the Council were present:
The Director General, the Associate Director General, and the Secretary of War.
Also present were: Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy ; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles,
36
Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Priorities Executive Order
The Director General reported that the President has not yet signed the Executive Order referred to at the last meeting (Minutes, 6-24—41, Paragraph 1,
JUNE 24 AND JULY 1, 1941
Document 21g) delegating authority under Public 89, and that he had had another conference with Mr. Leon Henderson, the Administrator of the Office of Price Administration and Civilian Supply, who is unwilling to use the Defense Industry Advisory Committees in the Office of Production Management and is continuing to issue preference orders directly to industry. The situation of two agencies dealing with industry in the field of allocation and priorities is highly unsatisfactory and is causing delay and confusion. However, the Office of Production Management will continue to clear its committees with Mr. Henderson as agreed, in the hope that after the President signs the Executive Order on priorities the situation will clear up.
2.	Expediting Contract Letting
The Secretary of War reported that the greater portion of the work under existing appropriations has now been contracted for, and the additional appropriations, about which he had written Mr. Knudsen on June 20, 1941, are shortly to be asked of Congress. He again emphasized the need for early delivery of these items and the urgency of replacing civilian production with defense orders. The Director General reported that every effort is being made to do this, and anticipates no serious delays with the possible exceptions of the 20 mm. antiaircraft gun and the 37 mm. gun being made by Colt.
3.	Adequacy of Program for Guns
The Director General reported that he had received from General R. C. Moore under date of June 20 a summary of the requirements for production in the United States of articles to be procured beyond a troop basis and raised the question whether the gun program is adequate for all foreseeable needs. The Under Secretary of War undertook to review this schedule and will send his findings to the Office of Production Management.
4.	Publicity Drive on Defense Production
The Director General stated that Mayor Fiorello LaGuardia has agreed to conduct a publicity campaign to rouse the public to the seriousness of the defense situation and to conduct a minuteman drive in industrial areas to help overcome lack of public support of the defense program. Mr. Knudsen is planning to make a two-week trip to defense plants and will make public statements on this subject during his visits. The Associate Director General is developing a program with labor groups, and the American Federation of Labor through its President, Mr. William Green, has appointed a committee on National Defense to secure labor support. This committee’s help will be available to Mayor LaGuardia in the proposed publicity campaign.
5.	Labor Advisory Committees by industries
The Associate Director General announced that he desired to call in committees of labor representatives from various industries to discuss problems touching on those industries. These committees would be available for advisory service to the chiefs of Commodity Sections where labor questions are involved and where they might have information which would assist the Commodity Sections in their programs.
6.	Expediting Approval of Plant Facility Contracts
The Director General called attention to two charts showing the improved procedure for approving plant facilities contracts and reducing the number of steps required in connection with Lend-Lease facilities. It was pointed out that such contracts require the approval of the War Department, the Office of Production Management, the Defense Plant Corporation, the Lend-Lease Administration, the Bureau of the Budget, and the White House. The War Department reported considerable progress in simplifying the procedures but pointed out that where a plant facilities project had been originated by the Office of Production Management through its Production Division and the contract was in excess of $500,000, the procedure had been followed of returning the papers after the approval of the plant and the site to the Division of Purchases and the Plant Site Board for clearance. In order to obviate this unnecessary reference back to the Office of Production Management, an amendment to Paragraph 4 of Regulation No. 6, to be known as Regulation No. 6-A was proposed and agreed to as follows :
(4A) If any division, bureau, office or officer of the Office of Production Management proposes to make any recommendation to the War Department, the Navy Department, or any other department, corporation, or agency of the government with respect to the construction or installation of any substantial plant or facility or the expansion in a substantial measure of any plant or facility required for the national defense, written notice of such proposed recommendation shall be given by such division, bureau, office or officer to the Plant Site Board, and also to the Director of Purchases if such construction, installation or expansion involves a recommended estimated expenditure of $500,000 or more ; and original evidence of the approval and clearance of such project by the Board, together with the data submitted to and considered by the Board, and original evidence of the approval and clearance of the proposal by the Director of Purchases in appropriate cases, shall accompany the recommendation to the War Department, Navy Department, or any other department, corporation, or agency of the government.
37
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
7.	Aluminum Production
The Director General reported progress in negotiations for the erection of new plants for aluminum production and the arrangement for power supply in connection with these plants. He anticipates no actual shortage in aluminum if all available aluminum is devoted to aircraft production and none is released for any other purpose. The situation, however, will become very tight in the latter part of 1942 when the large bomber program gets into heavy production. He sees no possibility of further expediting aluminum delivery by increased production at any of the present plants of ALCOA but believes that by the time the bomber program gets into production, the new plants will be producing aluminum. The real question is whether all aluminum production can be devoted to aircraft. The following steps are to be taken to conserve aluminum and to help the situation:
(1)	The Conservation Section of the Office of Production Management is to (a) study the adoption of British specifications which are for somewhat less pure aluminum, and (b) develop increasing uses for scrap aluminum.
(2)	Aluminum has been omitted from primary and basic trainer planes, and studies are being made for substituting wood and other materials in aircraft construction.
(3)	The Office of Production Management is scrutinizing all orders and is cutting out aluminum where not needed.
(4)	The top schedule for aircraft production requires about 77 million pounds of aluminum per month. On the basis of present specifications, 25 million pounds per month are needed for other Army and Navy requirements. All possible effort should be made to change these specifications, so that this 25 million pound item can be measurably reduced.
It was agreed that :
The Army and Navy will issue directives in addition to those already sent out pointing out the imperative need for eliminating aluminum from all items of procurement including weapons.
8.	Brass Situation
The Director General pointed out the increasing scarcity of brass because of defense requirements. He requests that the experiments taking place for making the larger shell cases out of steel to save brass be pushed with all possible speed. The Direction General meantime is having some experiments conducted in the use of steel in 50-caliber cartridges.
9.	Race Relations
The Associate Director General reported that the ^President has signed an Executive Order (Doc. 42a)33 reaffirming the policy of full participation in the defense program regardless of race, creed, color, or national origin, and establishing a Committee to be appointed by the President to further this policy. The Under Secretary of War submitted a directive issued by the War Department under date of June 27 (Doc. 42b) which contains a contract clause to be inserted in all contracts of the War Department pursuant to the Executive Order.
10.	Section 9 of the Selective Service and Training Act of 1940
j The Director General stated that an action had 'been contemplated under Section 9 of the Selective Service and Training Act of 1940 for the requisition-/ ing of a machine tool withheld at an unfairly high ; price by its owner, a dealer in Philadelphia, but that the dealer has finally agreed to sell it at a fair price. He stated further that Section 9 is not adequate, and the requisitioning bill, as now modified, should be passed to enable the procurement of machine tools withheld from sale to the Government at a fair price.
11.	Labor Stabilization Agreements in Aircraft Construction
The Associate Director General reported that the shipbuilding regional stabilization agreement is being* completed in the Chicago area. He urged the importance of speed in the formation of an aircraft stabilization committee in this most vital defense industry simultaneously with the settlement of the North American Aviation Company’s strike. He proposed an immediate meeting of the employers to form such a committee. The War Department will ask Assistant Secretary of War, Mr. Robert A. Lovett, to get in touch with the representatives of the industry to call such a meeting this week if possible.
In this connection it was pointed out that increased wage scales would doubtless be effected in the industry, and it is very desirable to effect them simultaneously with a nation-wide agreement under which labor assumes responsibility for continuous operation. „ The War and Navy Departments undertook to find ways in which wages could be adjusted, and the contractors properly compensated in connection with fixed price contracts.
12.	Activities and Personnel Changes of the Office of Production Management
The Secretary placed on file a memorandum of the activities of the Office of Production Management from June 24 to June 30 inclusive (Doc. Ie) and also a memorandum of the personnel changes from June 24 to June 30 inclusive (Doc. If).
83 Executive Order 8802, June 25, 1941.
38
JULY 1 AND 8, 1941
13.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a memorandum of the activities of the Office of Price Administration and Civilian Supply from June 24 to June 30 inclusive (Doc. 21i).
14.	Activities of the National Defense Mediation Board
The Secretary placed on file a memorandum of the activities of the National Defense Mediation Board from June 24 to June 30 inclusive (Doc. 19f).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Hillman's Office at the Social Security Building, 2:30 p.m., Tuesday, July 8
The following members of the Council were present :
The Associate Director General, who presided in the absence of the Director General; the Secretary of the Navy; and Under Secretary Robert P. Patterson, Acting Secretary of War.
Also present were: James V. Forrestal, Under Secretary of the Navy; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Aluminum Production
The Associate Director General stated that, after talking to the President today, he will request Mr. W. L. Batt, Deputy Director of the Production Division of the Office of Production Management, to complete the program for new aluminum plants as soon as possible; In view of the fact that the largest share of the program will go to one firm (the Aluminum Company of America, on account of its experience in the field) the contracts should contain provisions safeguarding the Government which will build and own the plants without an option to the Company to purchase.
2.	Priorities Executive Order
The Associate Director General reported that he has urged the necessity of the prompt promulgation of the order (Minutes, 6-24-41, Paragraph 1, Document 21g, and 7-1-41, Paragraph 1) delegating priorities functions under Public 89 and requested Mr. Emmerich to take the matter up with the Director of the Bureau of the Budget.
3.	Stabilization Agreement in the Construction Industry
Mr. Hillman reported excellent progress in the conference between the government agencies engaged
in construction and the representatives of labor in the construction industry. The stabilization agreement contemplates a uniform time-and-a-half rate for overtime, no additional pay for extra shifts, and no stoppage of work but conciliation or arbitration of all disputes while the agreement is in effect ; wage rates will be stabilized as of the commencement of the job for a period not in excess of a year; and a Board of Enforcement will be created consisting of one representative of the Office of Production Management,, one representative of other government agencies, and one representative of organized labor.
4.	Aircraft Stabilization Agreement
Mr. Hillman suggested there be a meeting tomorrow with the Assistant Secretary of War, Mr. Lovett, and other representatives of the Office of Production Management, the Army, and the Navy to discuss the problems of a stabilization agreement in the aircraft industry. A meeting with the union representatives would be called when the plan is further advanced. It was pointed out that there is an unsatisfactory classification of positions within the aircraft plants.
5.	Use of Existing Facilities
a.	Mr. Eric Nicol, Executive Assistant to Mr. Hillman, will be designated to investigate all complaints of lack of use of existing facilities in defense plants including reports that double shifts might be employed to advantage where facilities are available.
b.	Mr. W. L. Batt has reported that over twenty large plants are examples of industries having facilities which are not fully being used.
c.	Mr. Hillman will meet with representatives of the Army and the Navy and the Office of Production Management concerning this problem.
d.	Mr. Hillman said that he has received reports of unused facilities for shipbuilding and stated that there are many workers available who, with a little
39
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
training, could be useful in shipbuilding. Mr. Forrestal expressed the opinion that all reported facilities have been investigated and that the few yards referred to are not useable.
6.	Defense Labor Advisory Committees
The Secretary read a proposed Regulation authorizing the establishment of Defense Labor Advisory Committees in the Office of Production Management (Doc. 45) as well as a memorandum from Mr. Knudsen (Doc. 45a) to Mr. Hillman giving his approval to the creation of these committees subject to certain provisions that he recommended. Mr. Hillman explained that the decisions of the Commodity Sections in the Office of Production Management would have a very great effect on labor in many industries. He believes that much is to be gained for national defense by forming labor committees in such industries on designation of the Labor Division and by authorizing them to meet with the Government Presiding Officer in charge of the particular Commodity Section. Mr. Knudsen had proposed that they would meet separately from the Defense Industry Advisory Committee representing management. Mr. Hillman does not believe there would be too many industries in which such committees would be created. Accordingly, after discussion, it was agreed that :
Regulation No. 8, authorizing the formation and regulating the operation of Defense Labor Advisory Committees, is approved.
7.	Clearance of Legislation
The General Counsel reported the necessity for careful clearance of legislative reports and information given to Congressional committees throughout the Office of Production Management. There are three Congressional committees actively investigating the defense program, and inquiries are being constantly received in all divisions of the Office of Production Management. It is important, in view of the numerous committees asking for information and the amount of new legislation being introduced, to strengthen the central point of clearance in the General Counsel’s office which was previously designated by the Director General. Accordingly it was agreed that:
No officer or employee of the Office of Production Management shall take any action whatever relative to pending, proposed, or contemplated legislation or Congressional hearings or any other legislative matters without prior clearance with the General Counsel or the Assistant General Counsel in charge of legislation. All communications, conferences and contacts with Congress, or Government or private agencies with reference to such matters shall likewise be cleared with the Office of the General Counsel.
8.	Tax Certification
The Under Secretary of the Navy reported that the various government agencies have approved the Army and Navy legislation for the elimination of the Advisory Commission to the Council of National Defense from clearance of tax certification under the Revenue Act of 1940, but that the Administrator of the Office of Price Administration and Civilian Supply has raised some objections concerning the proposal. Mr. Hillman undertook to takè this up with Mr. Henderson and requested the Secretary to send him the necessary information bearing on the matter.
9.	Creation of Labor Supply Branch in the Labor Division
The Secretary reported that there has been created in the Labor Division a Labor Supply Branch in charge of coordination and direction of all operations concerning labor supply and training under the direction of Mr. Arthur S. Flemming, whose services have been loaned by the U. S. Civil Service Commission. The Labor Supply Branch is assuming the actual direction of all work of training and labor supply and placement in the Government in connection with defense work. The Administrator of the Federal Security Agency, Mr. Paul V. McNutt, has agreed to permit the Branch to give direct instructions to the field offices of the U. S. Employment Service. A central committee in Washington will meet with the Branch and will consist of representatives of all interested government agencies on placement, training, and reemployment. Regional Labor Supply Committees, consisting of representatives of labor and management and of all the governmental agencies participating in the program of the Labor Supply Branch, have been established in the regional headquarters of the Social Security Board. The Regional Officer of the Bureau of Employment Security will be the acting Chairman of the Committee in each district.
Mr. Hillman stated that this program is pursuant to the letter of the President of May 28 (Doc. 46) and that it is a move in the direction of giving preference to defense employment. A description of the work of the Labor Supply Branch, the government agencies affiliated with its program, and the functions and organization of the Regional Labor Supply Committees is appended as Doc. 46a.
10.	Executive Order on Vacation Policy
The Secretary reported that the President has issued an Executive Order (Doc. 47)34 prescribing regulations governing vacation policy for field service employees of the War Department, the Navy Department, the Coast Guard, and the Panama Canal who forgo vacations during the emergency.
84 Executive Order 8817, July 5, 1941.
40
JULY 8 AND 15, 1941
11.	Report of the Priorities Division A
The Secretary placed on file a report of the Priorities Division for the week ending July 5 (Doc. 4k) and also a list of industry-wide preference orders issued since July 1 (Doc. 4L).
12.	Activities and Personnel Changes of the Office of Production Management
The Secretary placed on file a memorandum of the activities of the Office of Production Management for the week ending July 7 (Doc. 1g) and also a memorandum of the personnel changes for the week ending July 7 (Doc. Ih).
13.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a memorandum of the activities of the Office of Price Administration and Civilian Supply for the week ending July 7 (Doc. 21j).
14.	Activities of the National Defense Mediation Board
The Secretary placed on file a memorandum of the activities of the National Defense Mediation Board for the week ending July 7 (Doc. 19g).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
James Forrestal
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Hillman's Office at the
Social Security Building, 2:30 p.m., Tuesday, July 15
The following member of the Council was present: The Associate Director General, who presided in the absence of the Director General.
Also present were: Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Under Secretary of the Navy; John Lord O’Brian, General Counsel; Herbert Emmerich, Secretary; and for a portion of the meeting, Mr. W. L. Batt, Deputy Director of Production.
1.	Aluminum Production
Mr. Batt stated that the program for additional aluminum facilities which will be financed by the Defense Plant Corporation has been agreed to by the War Department according to the schedule attached (Doc. 48). The program will increase annual capacity by six hundred million pounds. Seven new plants are to be built. Three of these plants are to be operated by the Aluminum Company of America; and the Aluminum Company on a non-profit basis will design and supervise the construction of the plants to be operated by the Union Carbide and Carbon Corporation and the Olin Corporation and will cooperate in training technical staffs to operate these plants.
2.	Need for Improving Estimates of Requirements for the Military Program
Mr. Batt also called attention to the difficulty involved in securing reliable statistical estimates on the
future requirements of the War and Navy Departments in the field of both aluminum and magnesium, and recommended that the Office of Production Management and the Services review the methods of estimating the scarce and critical materials required for the military program. It was agreed that:
The Army, Navy, and Office of Production Management will consult with a view of improving the methods of estimating the materials required for present and prospective military programs.
3.	New $4,700,000,000 Army Appropriation
Mr. Batt stated that the Office of Production Man-"agement has reported to the War Department that most of the new $4,700,000,000 Army program could be completed within the calendar year 1942. Certain items, however, will not be completely delivered until some time in 1943 as follows :
Garand rifles: Full requirements probably cannot be completed from present sources until 1943 but the Army is not requesting completed delivery until that year.
Caliber .45 automatic pistols: With one or two additional contractors, involving new equipment significànt in amount, the program probably could be completed by the middle of 1943.
Armor piercing shot: Unless the shortage in heat treating facilities can be corrected, the program might not be completed until the end of 1943.
41
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
Ammunition for 4.5 inch anti-tank and 4.7 inch antiaircraft guns: Until designs are approved, it is difficult to estimate the probable completion date of these programs.
40	mm. guns: Present orders will not be completed until the end of 1942; additional facilities will be required for the expanded program which even with increased capacity probably cannot be completed until the fall of 1943.
90	mm. antiaircraft guns: The full program probably cannot be completed until June 1943.
Optical, fire control equipment and radio: New and specialized designs and shortages of skilled personnel and facilities make these items the most difficult part of the program, but it is expected that these serious problems can be surmounted.
Mr. Patterson stated that most of the items carried over into 1943 involve new designs and production problems.
At this point, Mr. Batt left the meeting.
4.	Aircraft Stabilization Agreement
Mr. Hillman reported that he met last week with representatives of the Army and Navy and of management in the aircraft industry from both the East and West Coast, and that they were eager for the adoption of stabilization agreements in the industry. It was contemplated having a meeting between committees chosen from the industry and representatives of the Army and Navy in order to develop an agreement. There will probably be separate agreements for East and West Coast plants.
5.	Tank Program
Mr. Hillman presented a letter from the President of July 9 (Doc. 49 ) 33 and the joint reply dated July 11 which he and Mr. Biggers had sent to the President (Doc. 49a).36 He emphasized the fact that the Tank and Combat Vehicle Section has made certain recommendations, including the possible conversion
33 Letter, the President to Sidney Hillman, July 9, 1941.
The President urges substantial and prompt increase in tank production and suggests that Hillman, Knudsen, and the Secretary of War confer and plan to utilize the maximum tank capacity. Since British needs are urgent and immediate and since both American and British needs are impossible to foresee, he suggests that the only limiting factor in the next year or two be the ability of industry to produce tanks.
He further urges the getting of as many machine tools from consumer goods plants as is possible. - Finally, he asks for the recommendations of the Office of Production Management and the War Department by Friday, July 11.
88 Letter. Sidney Hillman and John D. Biggers to the President, July 11, 1941.
Having studied the problem outlined in the President’s letter of July .9, and having reviewed the letter of the Secretary of War to the President written July 10, they concur in the statements of the Secretary, but emphasize the following points: Coordination of all tank production under the Ordnance Department of the War Department will make possible the pushing of production beyond previous estimates, so that, the goal of 1,000 medium tanks per month should be reached by April .1942, through the greater utilization of subcontracting, prompt acquisition of machine tools and efficient production; the plan does not literally meet the President’s demands of producing tanks to the limit of the ability of American industry, but, while it is possible to produce more, such procedure would result in undesirable dislocations; and production of light tanks could be increased from 400 to 800 per month without too great difficulties.
of facilities now devoted to civilian supply to defense production, and he requested that the Army give careful and open-minded consideration to these recommendations.
6.	Utilization of Civilian Facilities for Defense Production
Mr. Hillman presented the President’s letter (Doc. 50)37 and reported that representatives of the Labor Division and other divisions are studying this matter and will clear their findings with Mr. Knudsen before replying to the President.
7.	Mechanical Refrigerator Industry
Mr. Forrestal stated that the General Electric Company is willing to convert its facilities for the production of mechanical refrigeration to defense uses provided that other manufacturers in the field consent to take the same action. Mr. Patterson recommended a meeting be called at an early date of representatives of the industry with a view of reaching a general agreement on the conversion of mechanical refrigeration, facilities from civilian supply to defense needs.
8.	Coal—Hard Fuels Coordination in the Department of the Interior
Mr. Hillman stated that the President has asked him to confer with Mr. Harold L. Ickes, Secretary of the Interior, with regard to a proposal to designate the Secretary of the Interior as Hard Fuels Coordinator and that he has informed the Secretary that he would advise the President to approve the proposal provided that authority to issue priorities orders is reserved to the Office of Production Management. Mr. Hillman referred the documents submitted to him in this connection by Secretary Ickes to the General Counsel, Mr. O’Brian, for review and comment.
9.	Certificates of Non-Reimbursement
Mr. Forrestal reported that conferences are in progress with the representatives of the Office of Price Administration and Civilian Supply concerning the proposed legislation referred to at a previous meeting (Minutes, 7-8-41, Paragraph 8) for an amendment to the Revenue Act of 1940 with regard to Certificates of Non-Reimbursement, and that he anticipates arriving at a draft of the amendment satisfactory to the Office of Price Administration and Civilian Supply very shortly.
10.	Steel
\Mr. Patterson and Mr. Forrestal stated that they proposed to send men out to review the order books of certain manufacturers of steel for the purpose of
87 Letter, the President to Sidney Hillman, July 9, 1941.
The President urges immediate action to utilize for defense purposes a substantial i>art of the large durable goods factories that are still manufacturing items for consumer use. It is necessary to have the services of these going organizations to get on as rapidly as national interest requires. Some delay will be unavoidable and some of the cost will have to be borne by the Government.
42
JULY 15 AND 22, 1941
getting an on-the-ground check that steel plant capacity is actually being devoted to defense work, and invited the Office of Production Management to have representatives accompany them if it so desired.
11.	Revised Organization Chart of the Office of Production Management
The Secretary presented an organization chart of the Office of Production Management dated July 15 (Doc. li) giving effect to the allocation of Commodity Sections among the Directors of Production, Purchases, and Priorities in accordance with Regulation No. 7 and Administrative Order No. 11 (Minutes, 6-24-41, Paragraph 2, Documents 22d and 22c) which had been approved by the Divisions affected and by the Acting Director General.
12.	Report of the Priorities Division
The Secretary placed on file a report of the Priorities Division for the week ending July 12 (Doc. 4m).
13.	Activities and Personnel Changes of the Office of Production Management
The Secretary placed on file a memorandum of the activities of the Office of Production Management
for the week ending July 14 (Doc. Ij) and also a memorandum of the personnel changes for the week ending July 14 (Doc. Ik).
14.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a memorandum of the activities of the Office of Price Administration and Civilian Supply for the week ending July 14 (Doc. 21k).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
James Forrestal
Secretary of the Navy
Herbert Emmerich
Secretary	,
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, July 22
The following members of the Council were present :
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were: Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy; Julius H. Amberg, Special Assistant to the Secretary of War; Adlai Stevenson, Special Assistant to the Secretary of the Navy; William W. Dulles, Special Assistant to the Under Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Aircraft Problems
The Director General, who has just returned from a twelve-day trip in which he visited sixty plants, reported on his findings. In general he found good progress being made in the airplane program except in the field of bomber production. The following specific recommendations for action developed from his report:
a.	Bomber Design—In order to prevent confusion and delay in the bomber production program, it is imperative that the designs of four basic types be frozen and plans approved at the
earliest possible moment. There ought to be one type for each of the following: B-17, 4-engine Boeing; B-24, 4-engine Consolidated; B-25, 2-engine North American; and PBY-5 Consolidated. Particular delay in the Boeing plant is anticipated due to the fact that designs have not been definitely determined. Mr. Merrill C. Meigs, Chief of the Aircraft Section, has just returned from England and reports that the British are well satisfied with the basic design of American-type bombers now being delivered, but that they frequently make alterations in them to adapt them to current conditions. The important thing therefore is to decide on the design and see that the planes are gotten to them promptly.
b.	Standardization of Bomb Sight—The bomber planes are being built so that they may be equipped with either the Norden or the Sperry bomb sight. If it were possible definitely to specify one or the other, designs could be simplified and production expedited. The Norden sight is superior to the Sperry sight, but its adoption for all types involves releasing the Norden sight to the British for whose use many of these planes are destined. The Secretary of War proposed that the Secretary
43
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
i of the Navy take under advisement a proposal jointly to request the President to authorize release of the Norden sight to the British, thereby giving them the benefit of the best bomb sight and at the same time making it possible to standardize design and expedite production.
c.	Transport Planes—If orders are placed immediately, it will be possible to secure delivery of additional Douglas DC-3 transport planes , without interfering with the production of tactical planes. Planes for air transport of troops may become of increasing importance, and it is recommended that further study be given by the Army to placing additional orders for this type for Army account.
d.	Douglas Plant at El Segundo making the SBD-3—This plant could produce sixteen planes a week instead of eight if it had additional orders.
e.	Duplication of Stock Rooms and Inventories— In certain cases aircraft plants having orders both on fixed fee and fixed price bases have, for accounting reasons, established two stock rooms and two inventories. Mr. Knudsen recommends common stock rooms and a small handling charge for financing to be allowed for withdrawals. He reported that an officer of the War Department has been looking into this matter, and it would simplify production and accounting if this duplication were eliminated.
f.	Airplane Assembly Plants in Ft. Worth and Tulsa—Mr. Knudsen reported that good progress was being made in the construction of the bomber assembly plants at Ft. Worth and Tulsa under the supervision of the U. S. Engineers. He will impress upon the Ford Motor Company the importance of expediting production of the parts which they have on order for delivery to these plants. He will advise Mr. Ford to double his work force so that the two plants can start assemblies immediately upon their completion which is scheduled to be early in December.
2.	Magnesium Plant
Mr. Knudsen reported that he visited the magnesium plant under construction at Permanent© with Mr. S. F. Kaiser who, with the help of an Austrian expert, is developing a new process which has proved successful abroad. The plant should be in production sometime in* August, and if the process proves to be successful, three more plants can be constructed and producing within five months’ time.
3.	Defense Morale
Mr. Knudsen reported that on his trip he gave eleven talks on the need for speed and unity in the defense program and that these were well received. He observed, however, a lack of a sense of urgency concerning the defense program in many sections, particularly those west of Minneapolis.
4.	Construction Stabilization Agreement
Mr. Hillman recommended the adoption of the Construction Stabilization Agreement dated July 22, 1941 which contains changes suggested by Admiral E. S. Land of the Maritime Commission and Admiral B. Moreell of the Bureau of Yards and Docks of the Navy Department. These changes are acceptable to the other agencies of the Government, and Mr. John Coyne of the American Federation of Labor will present them to the nineteen unions affected for adoption. He presented the agreement incorporating the changes (Doc. 51 ),38 and it was agreed that:
The Construction Stabilization Agreement dated July 22 and incorporating the proposed changes is approved.
5.	Aircraft Stabilization Agreement
Mr. Hillman reported that negotiations are under way for an Aircraft Stabilization Agreement for a period of one year. The first agreement was to be for the West Coast where immediate action is needed. Representatives of the international unions are conferring with the local unions, and he is very hopeful that before the end of the week, an agreement will be reached.
6.	Executive Order on Race Discrimination
Mr. Hillman submitted for the record the President’s Executive Order (Doc. 42c)39 supplementing his previous order (Minutes 7-1-41, Paragraph 9, Document 42a) appointing a committee on fair employment practice to provide for an additional member.
Mr. Dulles submitted for the record a dispatch sent out to all appropriate naval offices, bureaus and stations concerning the question of non-discrimination (Doc. 42d).
88 Memorandum of Agreement between the Representatives of Government Agencies Engaged in Defense Construction and the Building and Construction Trades Department of the American Federation of Labor, July 22, 1941.
The agreement provides for:
1.	Uniform conditions determining payment of overtime rates;
2.	Uniform shifts;
3.	Agreement that there shall be no stoppage of work on account of jurisdictional disputes or for any other cause;
4.	Policy on subcontracting;
5.	Predetermination of minimum wage rates;
6.	Coverage of agreement, defined as applying to any contract worK done for. or through any Federal agency for defense purposes within the continental limits of the United States and the Panama Canal Zone; and
7.	Limitation of the number of apprentices.
89	Executive Order 8823, July 18, 1941.
44
700598—46—4
JULY 22, 1941
7.	Priorities Problems — Relationship between the Office of Production Management and the Office of Price Administration and Civilian Supply Reference was made to the fact that the Office of Price Administration and Civilian Supply had issued a press release on Sunday, July 20, announcing a program for a reduction of 50% in the rate of production for automobiles and trucks. This announcement was made without consultation with the Office of Production Management in spite of the fact that its Automotive Branch was in the process of holding meetings with representatives of both management and labor in that industry for the purpose of formulating an orderly curtailment program, taking into consideration both conversion of civilian facilities to defense needs and prevention of financial hardship and unemployment by unplanned and overdrastic cuts.
It was again reported that the President has not yet signed the executive order allocating priorities authority between the Office of Production Management and the Office of Price Administration and Civilian Supply. A memorandum from Mr. E. R. Stettinius, Jr., Director of Priorities, on the importance of such an executive order to delegate the power granted under the Priorities Act, Public 89, was submitted for the record (Doc. 4n).
8.	Douglas Fir instead of Spruce
Mr. Knudsen raised the question whether Douglas fir which was acceptable in the last War cannot be specified for items now calling for spruce.
9.	Material Requirements Estimates
With further reference to the problem of improving the method of estimating industrial materials required to produce Army and Navy supply (Minutes, 7-15-41, Paragraph 2), it was agreed that:
Responsibility for preparing advance estimates of quantities and delivery dates for industrial materials required to produce all items of supply to be procured by the Army and Navy is assigned to the Army and Navy Munitions Board. The Board shall furnish these estimates and supporting data to the Office of Production Management for its examination and review in such form and at such periods as may be mutually agreed upon by the Board and by the Office of Production Management.
10.	Office of Production Management Clearance of Lend-Lease Requisitions
Mr. O’Brian pointed out the necessity of defining clearly the limits of responsibility assumed by the Office of Production Management in clearing and approving Lend-Lease requisitions which are referred by various departments of the Government to the office of Mr. Donald M. Nelson, Director of
Purchases. The problem involved is set forth in a memorandum from Mr. Nelson to Mr. Knudsen and Mr. Hillman dated July 22 (Doc. 52). After discussion it was agreed that:
The Office of Production Management’s responsibility in connection with Lend-Lease requisitions is limited to the following items: (1) the availability of the articles desired within the United States, (2) the extent to which the acquisition of such articles might interfere with the procurement and procurement planning programs of the Army and Navy, (3) means by which any possible interference which such acquisition might cause with the procurement and procurement planning programs of the Army and Navy or with the domestic economy may be held to a minimum, and (4) the most efficient methods of purchasing.40
Mr. Knudsen undertook to advise Mr. Harry L. Hopkins, General James H. Burns, and Mr. Wayne Coy accordingly.
11.	Hard Fuels Administration (Minutes, 7-15-41, Paragraph 8}
Mr. Hillman reported that he had notified the Secretary of the Interior that he approved Mr. Ickes’ draft of a letter to be signed by the President appointing the Secretary to the position of Hard Fuels Coordinator provided that the following words were inserted: “It is also expected that in carrying out these responsibilities your action will be subject to the determinations as to the requirements for National Defense, direct and indirect, and as to the establishment of priorities for such requirements, made from time to time by the Office of Production Management.”
12.	Reduction of Use of Aluminum in Non-Aircraft Items
It was agreed that:
The problem of reduction in the use of aluminum in nonaircraft items is referred for consideration and report to the Army and Navy Munitions Board.
13.	Tank Production
It was reported that the Army is working with the Office of Production Management on the question of availability of additional machine tools and facilities for increased tank production. There is increasing emphasis on the production of light tanks. The Ordnance Department has a section on tanks under Lieutenant Colonel John K. Christmas which is studying this matter.
Mr. Knudsen recommended the adoption of liquid-cooled motors in order to increase the operative efficiency and rate of production of tanks.
40 This paragraph is a summary of Nelson’s letter.
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
14.	General Requirements or Strategy Board
Mr. Stimson pointed out the fact that as requisitions from Great Britain and other countries are received and the Army and Navy programs are increased from time to time, there is a possibility of conflicting requirements and a danger of insufficient consideration of priority of deliveries in terms of production possibilities. He believes there is a need for an authoritative General Requirements or Strategy Board to look at the entire program and to determine its order of precedence in a deliberate manner so as to attain strategic objectives with a minimum of disarrangement of production schedules.
15.	Refrigerator Industry — Conversion to Defense
Needs
It was reported that the Frigidaire plant is making machine guns and the General Electric Company is considering accepting defense orders in its refrigerator plant. General Wesson is studying ordnance items that might be made by this industry and a further report will be made to the Office of Production Management.
16.	Office of Production Management Organization
The Secretary placed on file the list of Branch Chiefs (Doc. IL) designated in the various commodity subdivisions recently created in the Office of Production Management (Chart, Doc. li) and the report of July 21 by Mr. Sidney J. Weinberg, Chief of the Bureau of Clearance of Defense Industry Advisory Committees, showing that five Defense Industry Advisory Committees had been organized and that eight more were in various stages of formation (Doc. 22e).
17.	Daylight Saving
The Secretary placed on file a copy of the text of the President’s message to Congress on the question of daylight saving (Doc. 44a).
18.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending July 19 (Doc. 4o).
19.	Activities of the Office of Production Management
The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending July 21 (Doc. Im).
20.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian Supply as publicly announced for the week ending July 21 (Doc. 21L).
21.	Activities of the National Defense Mediation Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the two weeks ending July 21 (Doc. 19h).
Minutes Approved:
Wm, S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, July 29
The following members of the Council were present :
The Director General, the Associate Director General, and the Secretary of War.
Also present were: Robert P. Patterson, Under Secretary of War; Ralph A. Bard, Assistant Secretary of the Navy; Julius H. Amberg, Special Assistant to the Secretary of War; Adlai Stevenson, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel ; Herbert Emmerich, Secretary; and for a portion of the meeting, E. R. Stettinius, Jr., Director of Priorities.
1.	West Coast Aircraft Agreement
The Associate Director General reported that the local unions on the West Coast have not yet approved an aircraft agreement, and he is asking the union representatives to come to Washington on August 15 to negotiate this matter. Mr. Hillman strongly urges that time be given for the unions to come to an agreement. The employers have indicated their willingness to make any provisions reached retroactive.
2.	Defense Contract Service
The Director General reported that the Defense Contract Service, established originally in the Pro
46
JULY 22 AND 29, 1941
duction Division, is now thoroughly organized with branch offices in the thirty-six Federal Reserve field offices. The Service has been instrumental in helping to place a growing volume of subcontracting of defense business. It is under the supervision of Mr. Robert L. Mehornay and operates its field offices by an arrangement with the Federal Reserve Banks. The Banks supply personnel approved by the Defense Contract Service and space and bookkeeping services and are reimbursed for these by the Office of Production Management out of its budget. As the work is now organized, it increasingly affects all parts of the Office of Production Management, and Mr. John D. Biggers, Director of Production, has recommended that the Defense Contract Service be made a bureau of the Office of Production Management, reporting directly to the: Director General and the Associate Director General who endorse this recommendation. A regulation for the adoption of the Council to carry out this recommendation was submitted (Doc. 12a). It was agreed that:
Regulation No. 9, establishing the Defense Contract Service as a bureau of the Office of Production Management and prescribing its duties and functions, is adopted.
3.	Petroleum Functions of the Office of Production Management
Mr. Knudsen reported that Mr. W. L. Batt, Deputy Director of Production, has raised the question as to what functions should continue to be performed in the Umce of Production Management in connection with the petroleum industry (Doc. oo)11 in view of the tact that the Honorable Harold L. Ickes, Secretary of the Interior, was designated by the President in a letter of May 28 as Petroleum Coordinator for National Defense (Doc. 5.5a). It was agreed that:
In view of the appointment of the Secretary of the Interior as Petroleum Coordinator for National Defense, the relations with the industry and other functions heretofore carried on by the Oil Unit of the Office of Production Management are no longer to be performed there, but a small capable unit should be maintained for the continuing tunc-tions of the Office of Production Management in connection with the problems on petroleum referred to the Office of Production Management by the Armed Services, the determination of direct and indirect defense requirements and matters concerned with priorities in the use of petroleum and its products and in materials and equipment required by the petroleum industry, and for liaison with the Coordinator.
41 Memorandum, W. L. Batt to W. S. Knudsen, July 28, 1941.
The Secretary of the Interior, in his capacity as Petroleum Coordinator, intends to be the sole Government agency contacting the oil industry and handling all petroleum activities with the possible exception of price control.
4.	Tank Production Program
The Director General asked what immediate steps could be taken to start work on transmissions and other items needed in the new program for medium tanks in which it is hoped to reach a capacity of one thousand a month by April 1942. There are 4,600 tanks provided for in the current appropriations now pending before Congress, and Mr. Patterson reported that he has directed the Ordnance Department of the Army to issue Conditional Letters of Intent for the 4,600 additional tanks.
5.	Aircraft Design—Bomber Program
With regard to the items brought out at the last meeting of the Council by Mr. Knudsen (Minutes, 7-22—41, Paragraph 1), Mr. Patterson reported he has notified the Services to freeze the designs of the bombers under the new program.
6.	Production Division Report
The Secretary distributed copies of the chart prepared by the Production Division on selected items of military production for the month of June 1941.
7.	New Lend-Lease Appropriation
Mr. Knudsen mentioned the fact that insufficient time had been allowed the Office of Production Management to review the new proposed Lend-Lease appropriation. Under Secretary Patterson undertook to arrange for simultaneous review by the Office of Production Management and the Ordnance Department of such estimates hereafter. He mentioned in this connection the need for revoking the “Byrd Amendment” to the Lend-Lease Act, and said such action would expedite completion of a consolidated program.
8.	Electric Power Supply and Defense Projects
The Secretary presented a request from Mr. Batt on behalf of the Power Unit of the Office of Production Management requesting the heads of the various Commodity Sections of the Office of Production Management and the heads of the various bureaus and divisions of the Army and Navy to furnish the Power Unit with estimates of requirements for future power needs as far in advance as possible. It was agreed that :
The Office of Production Management and the Army and the Navy shall request their various divisions and bureaus to furnish the Power Unit of the Office of Production Management with estimates of their future power requirements.
9.	Priorifies for Defense Housing
The Secretary presented a memorandum from Mr. E. R. Stettinius, Jr., Director of Priorities (Doc. 54) dated July 29 proposing priorities aid to defense housing projects. Mr. Stettinius appeared in person at the meeting and further explained the proposal
47
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
which had been submitted by him on request of Mr. Charles F. Palmer, Defense Housing Coordinator. After discussion it was agreed that :
No action would be taken in the matter of authorizing a priorities plan for housing until further data regarding the agencies concerned and the need for such a priorities plan is received.
10.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending July 26 (Doc. 4p).
11.	Activities of the Office of Production Management
The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending July 28 (Doc. In).
12.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian
Supply as publicly announced for the week ending July 28 (Doc. 21m).
13.	Activities of the National Defense Mediation Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending July 28 (Doc. 19i).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Ralph A. Bard
Acting Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 4:30 p.m., Tuesday, August 5
The following members of the Council were present :
The Director General, the Associate Director General, and the Assistant Secretary of the Navy.
Also present were: Robert P. Patterson, Under Secretary of War ; Adlai Stevenson, Special Assistant to the Secretary of the Navy; John Lord O’Brian, General Counsel ; and Herbert Emmerich, Secretary.
For a portion of the meeting, the following were present: Donald M. Nelson, Director of Purchases, E. R. Stettinius, Jr., Director of Priorities ; Black-well Smith, Assistant Director of Priorities; and Geoffrey Smith, Assistant General Counsel.
1.	Priorities Regulation No. 1 and the Defense Identification Stamp Plan
Messrs. Stettinius, Blackwell Smith, and Geoffrey Smith presented a memorandum of August 4 (Doc. 55) concerning Priorities Regulation No. 1 and the Defense Identification Stamp Plan. It was stated that the purposes of Priorities Regulation No. 1 are (a) to establish the principle and to give notice that contractors are required to accept defense orders, and (b) to set forth the general repetitive provisions which heretofore have had to be repeated in each of the General Preference Orders, so that hereafter each new Order may be shorter and may embody the general provisions by reference. The purpose of the Defense Identification Stamp Plan is to provide a
means of clear identification of defense orders. This in turn will facilitate the process of allocation and will indicate to industry the orders which require acceptance and preferential treatment.
Mr. Stettinius stated that he is arranging with General Philip Fleming, Administrator of the Wage and Hour Division, to use the field offices of that organization in making test checks in various parts of the country to see that the Defense Identification Stamp Plan is actually being applied to defense orders and to aid generally in investigating complaints with the priorities system. After full presentation of the plan, it was agreed that:
Priorities Regulation No. 1 is adopted.
The Defense Identification Stamp Plan is approved in principle, but it should be redrawn so that there would be more control of the issuance of the stamps to industries and their use in connection with defense orders. A method will be devised for issuance of stamps upon certification by the recipient that he has defense orders and that he will use them only for defense orders and as to the number of stamps issued. They should be issued through prime contractors, field offices of the Priorities Division, or another suitable government office but in each case only upon proper certification. The Priorities Division is authorized to use the services of the Wage and Hour Division for investigation purposes.
48
JULY 29 AND AUGUST 5, 1941
2.	General Equipment Priority Committee Discontinued and Its Work Transferred to Commodity Sections
Mr. Stettinius called attention to letters received from the Under Secretary of War and the Assistant Secretary of the Navy concerning the discontinuance of the General Equipment Priority Committee and explained that there have been substituted for the eleven priority committees formerly in the Priorities Division, under Regulation No. 7 and Administrative Order No. 11 adopted on June 24, 1941, Commodity Sections, and that the Army, the Navy and the Priorities Division will be represented in each Commodity Section.
3.	Priorities Clearance Section
Mr. Stettinius reported that, before priority actions are taken, they will clear through the Clearance Section in the Priorities Division. He requested that the Army and Navy Munitions Board designate one representative from the Army and one from the Navy for continuous service with the Priorities Clearance Section. It was agreed that :
The Under Secretary of War and the Assistant Secretary of the Navy will request the Army and Navy Munitions Board to designate a representative from the Army and the Navy respectively to the Priorities Clearance Section of the Priorities Division.
At this point, Messrs. Stettinius, Blackwell Smith, and Geoffrey Smith left the meeting.
4.	Subcontracting
The Director General presented a memorandum from Mr. William E. Levis, a member of the Production Planning Board who is representing him and the Associate Director General in connection with the Defense Contract Service (Doc. 12b). The recommendations contained therein are designed further to stimulate subcontracting and spreading of work and to assign to the Defense Contract Service the additional functions of lessening the concentration of orders and the impact of priorities on industry which result in unemployment and the migration of labor. The recommendations propose changes in the-procurement procedures of the Army and Navy and provide for representation of the Defense Contract Service in the various subdivisions and committees of the Office of Production Management. After discussion it was agreed that :
a.	The Defense Contract Service shall be charged with the duty, in addition to those imposed upon it by Regulation No. 9 adopted July 29, 1941, of taking such steps as may be necessary to expedite deliveries by the widespread use of facilities not now devoted to defense production and to prevent and correct unemployment
and non-use of existing facilities caused by the impact of priorities and the undue concentration of orders.
b.	The Defense Contract Service shall have representation as required from time to time on the various committees and subdivisions of the Office of Production Management in order that it can represent the viewpoint of subcontracting and spreading of work in connection with their deliberations.
c.	The Army and Navy endorse the objectives set forth in Mr. Levis’ memorandum (Doc. 12b) and will give full and prompt consideration to the suggestions made therein for their implementation.
d.	The Army and Navy will appoint representatives to meet with Messrs. Robert L. Mehornay, J. Douglas Brown, and William E. Levis of the Office of Production Management to consider the changes proposed in procurement practices to make possible the accomplishment of these objectives.
5.	Material Estimating Requirements
The Director General referred to the discussion at a former meeting (Minutes 7-22-41, Paragraph 9) and called atention to the importance of reviewing the estimates for all critical and essential materials to the end that supplies would be adequate for military purposes without unnecessarily disrupting the civilian economy. The problem of estimates of requirements for raw silk was discussed and the question was raised as to whether these estimates had been suddenly and unexpectedly increased. This question could not be resolved in the absence of the documents. At this point, Mr. Donald M. Nelson, Director of Purchases, joined the meeting, and at Mr. Knudsen’s request, undertook to furnish Mr. Patterson’s office with a full record of documents on silk requirements. Mr. Knudsen announced his intention of initiating a review of the entire material requirements estimating procedure and will bring the matter up again in the near future.
Mr. Nelson then left the meeting.
6.	Housing Priorities
Mr. Knudsen reported on his conversations with Mr. Charles F. Palmer, Defense Housing Coordinator, and Mr. Abner H. Ferguson, Administrator of the Federal Housing Administration, and stated that no action will be taken on Mr. Palmer’s proposal for a plan for housing priorities until further data requested of Mr. Palmer has been received and the extent of the proposal and the problem of its administration can be fully analyzed.
7.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending August 2 (Doc. 4q).
49
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
8.	Activities of the Office of Production . Management
The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending August 4 (Doc. Io).
9.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian Supply as publicly announced for the week ending August 4 (Doc. 21n).
10.	Activities of the National Defense Mediation Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending August 4 (Doc. 19j).
Minutes Approved:
Vh:. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Secretary of War Forrestal
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE,OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, August 12
The following members of the Council were present:
The Director General, the Associate Director General, the Secretary of War, and the Secretary of the Navy.
Also present were: Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy; William W. Dulles, Special Assistant to the Under Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
1.	Federal Shipbuilding Company, Kearney, New
Jersey, Strike
The Secretary of the Navy asked for information as to the sequence of events in connection with the Army’s taking over the North American Aircraft Plant at Los Angeles, and stated that although the Navy is not in a position to sign a contract with the Union in connection with the Federal Shipbuilding Company strike, it is his present intention to follow the Mediation Board’s settlement if this plant is taken over by the Navy.
2.	Russian Orders
The Director General stated that he had had a report from Mr. John D. Biggers, Director of Production, on requests for machine tools and other supplies made by the Russian Military Mission who were accompanied by Colonel P. I. Faymonville, former American Military Attache in Moscow.' The orders for machine tools are very large and, if granted, would affect the American bomber program. Mr. Knudsen reported that he would not clear the orders until he has had an opportunity to bring to
the attention of the White House the effect of so doing and has received definite instructions.
3.	Material Requirements
The Secretary read a report prepared by Mr. Robert R. Nathan of the Bureau of Research and Statistics dated August 11 containing a review of estimates of raw material requirements made by the Army and Navy. A copy of this report was furnished to the Under Secretaries of War and Navy. Attached thereto was a list of the Army and Navy raw material requirements for the fiscal year 1942 and a list of the critical, essential and strategic items for which current estimates are not available from the Army and Navy. These two lists are attached as Doc. 56. It was agreed that:
The question of improving the estimating of material requirements of the Army and Navy is referred to the Under Secretaries of War and Navy for consideration, and they will report their findings and recommendations to the Office of Production Management.
4.	Subcontracting
It was reported that Messrs. William E. Levis, J. Douglas Brown, and Robert L. Mehornay have been in touch with the representatives of the Army and Navy on the subcontracting program (Minutes 8-5-41, Paragraph 4), and that good progress is being made in the negotiations. It is expected that in a day or two, sufficient agreement on the amendments in the procurement procedure will be reached and clearance with the Under Secretaries of War and Navy will have been had so that a comprehensive
50
AUGUST 5, 12, AND 19, 1941
public announcement of the new program and its re-lation to the prevention of unemployment in connection with priorities actions can be made.
5.	Executive Order on Priorities
It was reported that the President has designated Judge Samuel Irving Rosenman of New York to study the problem of the Executive Order required under Public 89 for the administration of priorities. Several tentative plans which Judge Rosenman had discussed with officials of the Office of Production Management were mentioned. There was general agreement that there should be one agency or body in which all matters of supply and priority could be settled and one channel for dealing with industry concerning them.
\ 6. Shipbuilding Program on West Coast
The Director General reported that Mr. W. H. Harrison, Deputy Director of Production, has just returned from the West Coast and reports satisfactory progress of the shipbuilding program but insufficient public appreciation of the seriousness of the defense emergency. The Director General felt that there should be more activity in the field of building morale in defense plants and industrial areas.
7.	Production Progress in July
The Director General cited figures from the Ordnance Branch Preliminary Production Report and Estimates of August 1, 1941'.
8.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending August 9 (Doc. 4r).
9.	Activities and Personnel Changes in the Office of Production Management
The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending August 11 (Doc. Ip) and also a report of the personnel changes as publicly announced for the week ending August 11 (Doc. Iq).
10.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian Supply as publicly announced for the week ending August 11 (Doc. 21o).
11.	Activities of the National Defense Mediation Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending August 11 (Doc. 19k).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Henry L. Stimson
Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in the Board Room at the
Social Security Building, 2:30 p.m., Tuesday, August 19
The following members of the Council were present:
The Director General and the Associate Director General.
Also present were: Robert P. Patterson, Under Secretary of War; James V. Forrestal, Under Secretary of the Navy; John J. McCloy, Assistant Secretary of War; Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Under Secretary of the Navy; Donald M. Nelson, Director of the Purchases Division; E. R. Stettinius, Jr., Director of the Priorities Division; W. L. Batt and W. H. Harrison, Deputy Directors of the Production Division; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
Later, the following joined the meeting: The Right Honorable Lord Beaverbrook, British Minister of Supply, and W. Averell Harriman, Lend-Lease Representative in London.
1.	Subcontracting
In a memorandum of August 14 to Messrs. Knudsen and Hillman (Doc. 12c), Mr. William E. Levis stated that clearance has been effected with the War and Navy Departments concerning the new subcontracting procedure. It was further reported that, in accordance with a memorandum from Mr. Frederick M. Eaton, Assistant General Counsel, to Mr. Levis of August 18 (Doc. 12d), informal approval has been obtained from the Office of the Comptroller General. It was pointed out that though the actual directives
51
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
by the War and Navy Departments in this connection have not yet been formulated in detail, they are being worked on. Both Services have agreed that a statement in questionnaire form should be obtained from prime contractors on all contracts involving $250,000 or more, but the details of the questionnaire have still to be confirmed. The Under Secretary of War is organizing a special bureau on contracting matters which will work in cooperation with the Defense Contract Service. It was agreed that:
Arrangements made by the Defense Contract Service with the Army and Navy are hereby ratified, and public announcement may be made of these agreements.
2.	Defense Housing
It was reported that Mr. Charles F. Palmer, Defense Housing Coordinator, had submitted the brief requested and that the immediate program for publicly financed housing involves approximately 101,750 dwelling units. There is evidently an urgent necessity of expediting this construction to accommodate workers engaged in defense industries, and there are increasing problems in getting materials for which priority action is justified.
The Secretary reported that a communication had been received from the office of Mr. John Carmody, Federal Works Administrator, asking for delay on the approval of details of any housing priorities plan until Mr. Carmody’s return to the City which is expected in a few days, and objecting to the proposal that the priorities projects of that office should clear through the office of Mr. Charles F. Palmer, Defense Housing Coordinator.
After discussion it was agreed that:
The Office of Production Management approves the granting of priorities for the expediting of publicly financed housing in connection with the present program of 101,750 dwelling units. The method of administration and the time and manner of announcement of the program are referred to the Director of Priorities for consideration and action.
3.	British-American Defense Problems
At this point Lord Beaverbrook, British Minister of Supply, accompanied by Mr. W. Averell Harri
man, Lend-Lease Representative in London, joined the meeting. There was a general discussion, which was not recorded, on the progress of the American and British production programs, the technical problems concerning them, and better collaboration of the two countries in connection with the Lend-Lease Act.
4.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending August 16 (Doc. 4s).	ByW
5.	Activities and Personnel Changes in the Office of Production Management
The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending August 18 (Doc. Ir) and also a report of the personnel changes as ' publicly announced for the week ending August 18 (Doc. Is).
6.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian Supply as publicly announced for the week ending August 18 (Doc. 21p).
7.	Activities of the National Defense Mediation Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending August 18 (Doc. 19L).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
(Acting) Secretary of War
Forrestal
Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, August 26
The following members of the Council were present: .
The Director General, the Associate Director General, the Secretary of the Navy, and Robert P. Patterson, Acting Secretary of War.
Also present were : Julius H. Amberg, Special Assistant to the Secretary of War; Adlai Stevenson, Special Assistant to the Secretary of the Navy ; William W. Dulles, Special Assistant to the Under Secretary of the Navy; and Herbert Emmerich, Secretary.
52
AUGUST 19 AND 26, 1941
1.	Material Requirements
Under Secretary Patterson reported that General Leonard P. Ayres, Chief, Statistics Branch, has been designated as contact man with the Bureau of Research and Statistics of the Office of Production Management on War Department material estimates. Commander E. M. Thompson is serving in a similar capacity in the Navy Department, but is still handicapped by being understaffed. The Navy Department will give this problem further attention.' 1
2.	Executive Order on Priorities—Relations between the Office of Production Management and the Office of Price Administration and Civilian Supply The Secretary placed on record a memorandum of Mr. E. R. Stettinius, Jr., Director of the Priorities Division, dated July 31, (Doc. 4t), on the difficulties of administering overlapping programs announced in the newspapers by the Civilian Allocation Division of the Office of Price Administration and Civilian Supply without prior consultation of the Priorities Division.
It was reported that the new Executive Order, now being worked on by Judge Samuel I. Rosenman, is making progress and a decision on the administration of military and civilian priorities under Public 89 is expected to be announced by the President in the near future.
3.	Subcontracting
A memorandum (Doc. 33a) on the functions of the Contract Distribution Division in the Executive Branch of the War Department, of which Lt. Col. Ray. M. Hare has been designated as Chief, was furnished by the Under Secretary of War.
It was reported by the Secretary of the Navy that Assistant Secretary Ralph A. Bard will be supervisor of a similar unit in the Navy Department and further details will be furnished to the Office of Production Management concerning its organization and functions. A report from the Navy Department (Doc. 33b) is attached.
k	i «¡WTO	rk ;, < w W Îu
4.	Guns—Quantifies of
Mr. Knudsen again called attention to the comparatively small program of antiaircraft guns now authorized by current appropriations. The Under Secretary of War stated that on the new appropriation for the Army just passed by Congress, the additional ordnance items requested were reduced from approximately a billion and a half dollars to $750,-000,000 and that this had caused a considerable decrease in the amount available for guns. The Under Secretary of War will furnish Mr. Knudsen with the schedules under the new appropriation. Mr. Knudsen undertook to support the War Department in any action it took further to increase the program.
There was discussion of the reply made on the progress of defense production by the President to Senator Harry F. Byrd; the Under Secretary of War read excerpts from the President’s message showing great discrepancies between actual production figures and those cited by the Senator.
5.	Tax Certification
It was reported that no legislation had yet been introduced to eliminate the Advisory Commission to the Council of National Defense from the tax certification process under the Revenue Act of 1940. In the meantime, the Advisory Commission to the Council of National Defense is comparatively inactive and a subcommittee of seven, representing the seven commissioners, with the aid of a special staff, is passing on certificates of necessity and certificates of other types. The arrangement is not proving satisfactory. Mr. Knudsen and Mr. Hillman will take up with the other members of the Advisory Commission to the Council of National Defense a suggestion whereby one person, agreed to by all seven commissioners, would be designated as their representative to pass on tax certification matters.
6.	Petroleum Pipe Line
Mr. Knudsen informed the Council that the construction of an oil pipe line from the Texas Field to Bayonne, New Jersey is contemplated. Such construction would require priorities on the delivery of steel, which would seriously interfere with the delivery of steel plate for shipbuilding. Mr. Hillman stated that he had received information from Mr. Lubin to the effect that there were not sufficient railroad tank cars available for relieving the shortage of oil on the Eastern Seaboard. The construction of oil tankers for water transport of petroleum had also been considered. Mr. Knudsen will offer the suggestion that seamless tubing be specified in such pipe lines, which type of tubing will not compete so greatly with the manufacture and delivery of steel for military needs. It was also agreed that:
In connection with priorities that may be applied for, the delivery of steel for pipe lines be spread out until April 1, 1942 in order to minimize the interference with other steel requirements.
7.	Construction Work in the War Department
The Under Secretary of War reported that the War Department will recommend to Congress in the near future that construction work in the War Department be transferred from the Quartermaster Corps to the Corps of Engineers. He is encouraging the use of lump sum competitive bidding on construction contracts and, in the case of architectural and engineering contracts, he is recommending the use of negotiated lump sum bids as opposed to the costplus-fixed-fee method.
53
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
8.	Board of Review for Building and Construction Industry
Mr. Hillman reported that, pursuant to the agreement between the representatives of Government agencies engaged in defense construction and the Building and Construction Trades Department of the American Federation of Labor, which provides in Paragraph 8 for a Board of Review (Minutes 7-22-41, Paragraph 4), the Building and Construction Trades Department of the American Federation of Labor designated Mr. John Coyne, its President, as its representative on this Board of Review ; the Government agencies designated Mr. James P. Mitchell, War Department, as their representative; Mr. Hillman recommended designation of Mr. J. Douglas Brown as the representative of the Office of Production Management. It was agreed that:
Mr. J. Douglas Brown is designated as the representative of the Office of Production Management on the Board of Review created under the agreement between the representatives of Government agencies engaged in defense construction and the Building and Construction Trades Department of the American Federation of Labor under the agreement in the memorandum of July 22, 1941.
9.	Basic Priority Plan
Mr. Knudsen reported that in lieu of the Defense Identification Stamp Plan previously discussed (Minutes, 8-5-41, Paragraph 1), a new plan involving allocation from the bottom up (i.e., from the fabricator of material, rather than from the top down, from the manufacturer of the finished product) is under study in the Office of Production Management. Copies of a memorandum prepared by Mr. Blackwell Smith, Assistant Director of the Priorities Division, have been circulated to representatives of Army, Navy, and Divisions of the Office of Production Management and suggestions thereon are solicited, as a decision on the plan is expected to be made in the next few days.
10.	Housing Priorities
Mr. Hillman presented a recommendation endorsed by the Director of Priorities that, in addition to the authority granted to adopt a priorities system for publicly financed defense housing projects, there be authorized a system for privately financed housing projects necessary in connection with national defense (Doc. 54a). It was pointed out that the estimate of the Defense Housing Coordinator and the Federal Housing Administrator for privately financed defense housing for the fiscal year 1942 is for 400,000 dwelling units. It was felt that at the present time the priorities plan should be limited to 200,000 dwelling units subject to further review when priorities on that number of houses had been granted. It was agreed that :
The Office of Production Management approves in principle the priorities plan as presented by Mr. Hillman and endorsed by the Director of Priorities for 200,000 privately financed dwelling units, and arrangements consistent with this recommendation for the administration of the plan are to be made by the Director of Priorities.
11.	Priorities Regulation No. 1
Priorities Regulation No. 1, previously authorized (Minutes, 8-5-41, Paragraph 1), has been executed and is attached (Doc. 55a).
12.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending August 23 (Doc. 4u).
13.	Activities of the Office of Production Management
The Secretary placed on file a report of the activi-ities of the Office of Production Management as publicly announced for the week ending August 25 (Doc. It).
14.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian Supply as publicly announced for the week ending August 25 (Doc. 21q).
15.	Activities of the National Defense Mediation
Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending August 25 (Doc. 19m).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
Forrestal
Secretary of the Navy
Herbert Emmerich
Secretary
54
AUGUST 26 AND SEPTEMBER 2, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:00 p.m., Tuesday, September 2
The following members of the Council were present :
The Director General ; the Associate Director General; the Acting Secretary of War Robert P. Patterson; and the Acting Secretary of the Navy James V. Forrestal.
Also present were: Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Under Secretary of the Navy ; John Lord O’Brian, General Counsel ; and Herbert Emmerich, Secretary.
1.	Executive Order
The Executive Order of the President, No. 8875, dated August 28, 1941, creating the Supply Priorities and Allocations Board, transferring the Division of Civilian Supply from the Office of Price Administration and Civilian Supply to the Office of Production Management, and delegating priorities powers to the Office of Production Management, was placed on file as Doc. 57.
2.	Materials Division
The Director General recommended that, for the better administration of the increasing work that has to do with industrial materials, a new Materials Division be created in the Office of Production Management, and that the functions having to do with raw materials and industrial materials heretofore supervised by the Production Division and by the Director of Priorities be transferred thereto. He submitted fpr adoption Regulation No. 10 (Doc. 58) to accomplish this recommendation. After discussion it was agreed that :
Regulation No. 10, establishing a Division of Materials in the Office of Production Management and prescribing its duties and functions, is adopted subject to the approval of the President.
3.	Regulation No. 3 Amended Regarding the Priorities Division
The General Counsel submitted Regulation No. 3 Amended (Doc. 4v) restating the duties and authorities of the Director of Priorities and the Priorities Division in view of the new authorities granted the Office of Production Management under the Executive Order of August 28. He pointed out certain changes in wording from the original Regulation No. 3. After discussion it was agreed that:
Subject to ratification by the Navy Department of the language of the Regulation, the Council approves Amended Regulation No. 3 as submitted.
In view of the resignation of Mr. Stettinius and after review of the actions taken by him during his
incumbency as Director of Priorities, it was agreed that:
The Council hereby confirms and ratifies all actions taken by Edward R. Stettinius, Jr. during his terni as Director of Priorities.
Until further order, all Preference Rating Certificates, all Blanket Preference Rating Orders and all other orders, directions and documents now printed and available for use, bearing the facsimile signature of E. R. Stettinius, Jr., as Director of Priorities, may be issued as heretofore in accordance with practices and authorizations heretofore established, and upon issuance shall have full validity and effect as if signed by Donald M. Nelson, Director of Priorities.
4.	Personnel Changes in the Office of Production Management
The Director General submitted the resignations of Mr. Edward R. Stettinius, Jr., as Director of Priorities, and Mr. John D. Biggers as Director of Production, the former to accept the position of Lend-Lease Administrator and the latter to accept the position as Minister to Great Britain. It was agreed that :
The Council accepts the resignation of John D. Biggers as Director of Production and Edward R. Stettinius, Jr. as Director of Priorities with regret and with thanks for the services they have rendered since the inception of the Office of Production Management.
Subject to the approval of the President, the following appointments are made : W. H. Harrison as Director of Production, Douglas C. MacKeachie as Director of Purchases, Donald M. Nelson as Director of Priorities, W. L. Batt as Director of Materials, and Leon Henderson as Director of Civilian Supply.
5.	Tax Certification
The General Counsel was requested to give further consideration and study to the administration of the amortization provisions of the Revenue Act of 1940 with a view to expediting procedure. He will investigate and advise the Council whether it is possible for the Advisory Commission members to designate one person to make investigations and recommendations concerning actions in regard to Certificates of Necessity and other certificates. It was agreed that :
The Tax Certification Unit of the Office of Production Management shall be transferred to the office of the General Counsel and shall be placed under his supervision.
55
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
6.	Morale Program
Mr. Hillman referred to the Labor Day broadcast yesterday with talks by the President, the British Minister of Labor, Mr. Ernest Bevin, representatives of the American Federation of Labor and the Congress of Industrial Organization, and himself. He believes that there should be an increased effort for enhancing labor morale among workers in defense plants, including further radio programs, distribution of literature, and other activities which would interpret the program and stimulate enthusiasm among management and labor. Under Secretary Forrestal pointed out that night shifts were neglected in previous morale efforts and should be taken into consideration in any new program. There was a general feeling that Mayor LaGuardia, Director of the Office of Civilian Defense, had not been able to give the problem of morale in defense plants adequate attention. Mr. Hillman recommended that the function of stimulating morale in defense industries be vested in the Labor Division of the Office of Production Management. It was agreed that :
Mr. Hillman’s recommendation for undertaking a defense industry morale program in the Labor Division of the Office of Production Management is approved, and he is authorized to take up this matter with the President for clearance and for the securing of the necessary funds.
It was reported that a great deal of stimulation to management and engineers engaged in the defense program had resulted from the award of the special ordnance emblem. It was felt that there was a great deal of stimulation in special awards for distinguished and outstanding contributions to defense in such cases, for example, as to the inventor of the Norden bomb sight. The requirements for the giving of such awards should be severe, so that they would be only awarded in a limited number of cases for an outstanding and distinguished contribution. It was agreed that:
The Office of Production Management shall recommend to the President, through its Director General, the establishment of a special award for distinguished contribution to defense production and design.
7.	Censorship of Mail Going Abroad
The Under Secretary of the Navy pointed out that various people in the Office of Production Management were writing letters to England and other foreign countries, some of which contain information of a military nature. It was agreed that :
The Director General will direct the officers and employees of the Office of Production Management to omit items of a secret military nature from their correspondence abroad in order to safeguard it from falling into unfriendly hands, and to submit questions about the appropriateness of such material to the Office of the Secretary.
8.	Requisitioning Statute
Under Secretary Patterson stated that as soon as Congress reconvenes on September 15, the Requisitioning Statute, as amended by the House, would undoubtedly pass. He believed any attempt to amend the statute would cause further delay and would be undesirable. Mr. Hillman pointed out that, in the hearings and statements on the Requisitioning Statute, a great deal of attention had been given to the question of machine tools and the need for governmental power to take them over when withheld, but that this in turn had aroused feeling in the House that small businessmen would be deprived of individual machines necessary to keep their plants going. He believed that more stress should be laid on the positive advantages to small business of the Requisitioning Statute which would enable the Government to repossess excessive inventories of materials in the hands of large producers.
9.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending August 30 (Doc. 4w).
10.	Activities and Personnel Changes of the Office of Production Management
; The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending September 1 (Doc. lu), and a report of personnel changes as publicly announced for the week ending September 1 (Doc. Iv).
11.	Activities of the Office of Price Administration and Civilian Supply
The Secretary placed on file a report of the activities of the Office of Price Administration and Civilian Supply as publicly announced for the week ending September 1 (Doc. 21r).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
Forrestal
Secretary of the Navy
Herbert Emmerich
Secretary
56
SEPTEMBER 2 AND 9, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, September 9
The following members of the Council were present :
The Director General ; the Associate Director General ; the Acting Secretary of War, Robert P. Patterson; and the Acting Secretary of the Navy, James V. Forrestal.
Also present were: Julius H. Amberg, Special Assistant to the Secretary of War; William W. Dulles, Special Assistant to the Under Secretary of the Navy; John Lord O’Brian, General Counsel; and Herbert Emmerich, Secretary.
Mr. Floyd B. Odium was also present and was presented to the Council.
1.	Tax Certification
It was reported that legislation which would have the effect of removing any tax certification responsibilities from the jurisdiction of the Advisory Commission to the Council of National Defense is being prepared for introduction. Under the proposed legislation the Secretary of War and the Secretary of the Navy would issue certificates in accordance with regulations proposed by them and approved by the President or such agency as he designates. When such legislation becomes law, it is expected that the Office of Production Management will be designated the agency to approve the regulations.
Mr. O’Brian reported a backlog of Certificates of Non-Reimbursement in the Advisory Commission to the Council of National Defense amounting to 2,000 applications involving 45,000 cases. He also reported that Certificates of Necessity in the Office of Production Management are current.
2.	Contract Distribution Division—Appointment of Mr. Floyd B. Odium
Executive Order No. 8891, dated September 4, 1941, creating the Division of Contract Distribution in the Office of Production Management and abolishing the Defense Contract Service, was placed on file as Document 59. It was agreed that :
Subject to the approval of the President, Mr. Floyd B. Odium is appointed Director of the Division of Contract Distribution of the Office of Production Management.
3.	British Industrial Mission
Mr. Knudsen announced that the British Industrial Mission, consisting of four representatives of management and four representatives of labor, is expected
to arrive in the United States on the 19th of September, and that a trip of approximately twenty days to defense areas and plants has been arranged by the Office of Production Management. The Mission is paying its own expenses, but as a matter of courtesy, Mr. Knudsen asks the Government, through the War Department, to place a plane at the disposal of the Mission for transportation while in the United States. Under Secretary Patterson will inquire into the matter and see if such arrangements can be made.
4.	National Defense Pipe Lines, Inc.
It was reported that the matter of the National Defense Pipe Lines, Inc. will come before the Supply Priorities and Allocations Board this afternoon and that its immediate construction would seriously interfere with the delivery of plate for Navy shipbuilding. It was agreed that :
The Office of Production Management will recommend that the Supply Priorities and Allocation Board disapprove any plan for the immediate construction of the National Defense Pipe Line which will interfere with delivery of plate for Naval vessels.
5.	Appointment of Executive Secretary
Mr. Knudsen reported that as the Secretary, Mr. Herbert Emmerich, has been assigned additional duties of an executive nature, he recommends a change in the title of his office. It was agreed that :
The designation of Mr. Herbert Emmerich as Executive Secretary of the Office of Production Management is approved.
6.	Priorities Division Report
The Secretary placed on file a report of the Priorities Division for the week ending September 6 (Doc. 4x). .
7.	Activities and Personnel Changes of the Office of Production Management
The Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending September 8 (Doc. Iw) and a report of the personnel changes as publicly announced for the week ending September 8 (Doc. lx).
57
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
8.	Activities of the Office of Price Administration
The Secretary placed on file a report of the activities of the Office of Price Administration as publicly announced for the week ending September 8 (Doc. 21s).
9.	Activities of the National Defense Mediation Board
The Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending September 1 (Doc. 19n).
Minutes Approved:
Wm. S. Knudsen
.	Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War
Forrestal
Acting Secretary of the Navy
Herbert Emmerich
Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, September 16
The following members of the Council were present :
The Director General ; the Associate Director General; and the Acting Secretary of the Navy, James V. Forrestal.
Also present were: Julius H. Amberg, Special Assistant to the Secretary of War ; William W. Dulles, Special Assistant to the Under Secretary of the Navy; John Lord O’Brian, General Counsel, and Herbert Emmerich, Executive Secretary; and for a portion of the meeting, Mr. Stacy May, Chief of the Bureau of Research and Statistics.
1.	Armament Balance Sheet
Mr. Stacy May, Chief of the Bureau of Research and Statistics of the Office of Production Management, reported on the findings of his recent trip to England concerning the comparison of production and inventory of defense equipment of Germany, the United Kingdom, Canada, and the United States. He stressed the superiority of the Axis in field artillery, anti-aircraft guns, tanks and heavy bombers. His completed report will be submitted to the Secretary of War and the Director General.
2.	Morale Program in Defense Industries
The Associate Director General reported agreement between management and labor on a six-point program governing transfers of labor made necessary by unemployment arising out of priorities in the region of Detroit, Michigan. He expected that this program would be beneficial to morale.
He also reported that talks by high Army and Navy officers to selected workers in defense plants had proved to be a successful method of morale stimulation in Cleveland, Ohio. He urged continuation of morale campaigns along these lines, and re
quested the Army and Navy to cooperate by making officer personnel available for educational programs in defense plants.
3.	Industrial Branches
The Executive Secretary reported that the following rearrangement of branches under the new organization of the Office of Production Management will shortly be made effective:
1.	Production Division. The Director of Production will establish Industrial Branches to assume primary responsibility for dealing with problems in connection with the manufacture of implements of war and with defense construction projects, as follows:
Reference
Code	Industrial Branch
1A	Aircraft Branch
IB	Ordnance Branch
IC	Tools Branch
ID	Shipbuilding Branch
IE	Construction Branch
2.	Purchases Division. The Director of Purchases will establish Industrial Branches to assume primary responsibility for dealing' with industries in which defense procurement of finished products is a major problem, as follows:
Reference
Code	Industrial Branch
2A	Food Supply Branch
2B	Textiles, Clothing, and Equipage
Branch
2C	Health Supplies and Civilian De-
fense Equipment Branch
2D	Containers Branch
58
SEPTEMBER 9 AND 16, 1941
3.	Civilian Supply Division. The Director of Civilian Supply will establish Industrial Branches to assume primary responsibility for dealing with those industries serving predominantly civilian needs, as follows:
Reference Code	Industrial Branch
3A	Pulp and Paper Branch
3B	Printing and Publishing Branch
3C	Lumber and Building Materials Branch
3D	Plumbing and Heating Branch
3E	Electrical Products and Consumers Durable Goods Branch
3F	Automotive, Transportation, and Farm Equipment Branch
3G	Industrial and Office Machinery-Branch
3H	Rubber and Rubber Products Branch
31	State and Local Government Requirements Branch
4.	Materials Division. The Director of Materials will establish Industrial Branches to assume primary responsibility for dealing with the manufacture and importation of industrial and raw materials and industrial services essential to defense, as follows :
Reference	
Code	Industrial Branch
4A	Aluminum and Magnesium Branch
4B	Chemical Branch
4C	Iron and Steel Branch
4D	Power Branch
4E	Cork and Asbestos Branch
4F	Nickel Branch
4G	Tungsten Branch
4H	Copper-Zinc Branch
41	Manganese-Chrome Branch
4J	Tin-Lead Branch
4K	Mica-Graphite Branch
4L	Miscellaneous Minerals Branch
4. Tax Certification
It was reported that the Army and Navy have agreed on legislation with regard to tax certification, and that this legislation will probably be introduced in the near future.
5.	Requisitioning Bill
It was reported that the War Department had recommended the Requisitioning Bill as agreed to by the House, and that it will probably be passed shortly if the House amendments are accepted.
6.	Material Requirements
The Executive Secretary referred to a letter of the Under Secretary of the Navy requesting that the Bureau of Research and Statistics obtain material requirements hereafter through the Office of Budget and Reports of the Navy Department (Doc. 56a). He asked whether this request was intended to amend the decision of the Office of Production Management dated July 22, 1941, in which the Bureau of Research and Statistics was instructed to make such requests through the Army and Navy Munitions Board. It was agreed that :
The Bureau of Research and Statistics will continue to address requests for estimates of material requirements to the Army and Navy Munitions Board as previously directed and the Executive Secretary will so advise the Under Secretary of the Navy.
7.	T.N.T.
The Director General called attention to a new British requisition for a million pounds of T.N.T. per day. Present production of T.N.T. is approximately 200,000 pounds daily; on completion of the plants now authorized, total capacity will be about 2,000,000 pounds daily.
The War Department was requested to study the new T.N.T. requisition of the British with a view to making immediate plans for increasing capacity.
8.	Ordnance Program
The Director General called attention to the fact that he had repeatedly remarked on the inadequacy of the program for anti-aircraft guns and other ordnance items; and that he felt it imperative that this program be reconsidered by the Services and greatly augmented. He stated that he would write a letter to the Secretary of War strongly urging an increase in the schedules for production of these items. He expressed willingness to assist in getting the necessary approvals for authorizing a larger ordnance program.
9.	Release to Congress of Confidential Information
The General Counsel pointed out the problem involved in requests for confidential information received by the Bureau of Research and Statistics from Committees of Congress and Members of Congress. It was agreed that :
All divisions and bureaus of the Office of Production Management will obtain clearance from the General Counsel’s office before releasing confidential information on the military program to committees and members of Congress.
59
700598—46—5

MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
Before approving such requests, the General Counsel’s Office will clear with officials designated for this purpose by the War and Navy Departments.
Clearance by the Navy Department will be by the Office of Admiral R. S. Holmes. Mr. Amberg will notify the Office of Production Management as to the proper person for clearance on this subject in the War Department.
10.	Proposed Purchases Agreement with Iceland
Mr. O’Brian raised the question of a proposed agreement between the Department of State and Iceland. It was proposed to delegate the Purchases Division of the Office of Production Management as a clearing point on purchases by that country. This matter was referred back to the Division of Purchases for further consideration in view of the fact that the Supply Priorities and Allocations Board has asked for a single agency to be designated by the Government to receive all requests from foreign countries for non-lend-lease purchases.
11.	Bureau of Industrial Conservation
A proposal to create a Bureau of Industrial Conservation in the Office of Production Management, heretofore a section in the Purchases Division, was submitted and adopted, and a regulation carrying out this decision will be circulated for approval and signature.
12.	Presidential Approvals
The Executive Secretary reported that the President had approved the following actions of the Council of the Office of Production Management:
Regulation No. 10 (Doc. 58a), establishing a Division of Materials in the Office of Production Management on September 4, 1941.
Regulation No. 3 Amended (Doc. 4y), restating the duties and authorities of the Director of Priorities and the Priorities Division, on September 12, 1941.
A letter (Doc. ly) appointing Donald M. Nelson, Director of the Division of Priorities; William H. Harrison, Director of the Division of Production; Douglas C. MacKeachie, Director of the Division of Purchases; William L. Batt, Director of the Division of Materials; Leon Henderson, Director of the Division of Civilian Supply on September 4, 1941..
A letter (Doc. 59a), appointing Mr. Floyd B. Odium Director of the Division of Contract Distribution of the Office of Production Management on September 12, 1941.
13.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending September 13 (Doc. 4z).
14.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending September 15 (Doc. lz) and a report of the personnel changes as publicly announced for the week ending September 15 (Doc. laa).
15.	Activities of the Office of Price Administration
The Executive Secretary placed on file a report of the activities of the Office of Price Administration as publicly announced for the week ending September 15 (Doc. 21t).
16.	Activities of the National Defense Mediation
Board
The Executive Secretary’placed on file reports of the activities of the National Defense Mediation Board as publicly announced for the weeks ending September 8 (Doc. 19o), and September 15 (Doc. 19p).
17.	Activities of the Supply Priorities and Allocations Board
The Executive Secretary placed on file reports of the activities of the Supply Priorities and Allocations Board as publicly announced for the weeks ending September 8 (Doc. 57a), and September 15 (Doc. 57b).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Julius H. Amberg
Special Asst, to the Secretary of War
Forrestal
Acting Secretary of the Navy
Herbert Emmerich
Secretary
60
SEPTEMBER 16 AND 23, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen:s Office at the
Social Security Building, 2:30 p.m., Tuesday, September 23
The following members of the Council were present :
The Director General ; the Associate Director General; and the Acting Secretary of the Navy, Mr. James V. Forrestal.
Also present were: The Special Assistant to the Secretary of War, Mr. Julius H. Amberg ; the Special Assistant to the Under Secretary of the Navy, Mr. William W. Dulles; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Bureau of Industrial Conservation
The Regulation, referred to in the last meeting, establishing a Bureau of Industrial Conservation in the Office of Production Management and prescribing its duties and functions, was presented and approved (Doc. 60).42
2.	T.N.T.
Mr. Amberg presented a report on behalf of the War Department (Doc. 61) which indicated that the pi esent production schedule for T.N.T. calls for 2,000,000 pounds per day by next summer. Two additional plants are now being surveyed ; one in the vicinity of Pittsburgh with a capacity of 400,000 pounds per day and a second with a like capacity that will probably be built from funds provided by the Lend-Lease Bill now before Congress. These plants will bring the total production capacity to 2,800,000 pounds a day. It was further reported that the necessary appurtenances for ammonia plants, etc. are included in the plan under consideration by the War Department. It was agreed that:
In the light of presently known requirements, the present program of a total production of 2,800,000 pounds of T.N.T. per day, together with the necessary appurtenances and facilities for ammonia and other items, appears to be sufficient for all predictable needs.
3.	Legislation
The General Counsel reported that the amendment to the Revenue Act of 1940 (H. J. Res. 235) (Doc. 62) as recommended by the War and Navy Departments has passed in the house, and that hearings before the Senate Committee are expected to begin on Monday, September 29, 1941.
4.	Defense Industry Advisory Committees
The Executive Secretary presented a report on the organization of Defense Industry Advisory Committees, which was prepared by Mr. Sidney J. Wein-
44 Office of Production Management Regulation 11.
berg, Chief of the Bureau of Clearance of Defense Industry Advisory Committees (Doc. 22f).
5.	Space Situation
The Executive Secretary referred to the critical shortage of space to accommodate the personnel of the Office of Production Management and recommended that three steps be taken :
(a)	The immediate release of space by existing agencies to the Office of Production Management to relieve its temporary and urgent needs ;
(b)	Cooperation of the War and Navy Departments and all agencies concerned in prompt evacuation of Temporary Building E, which has been assigned to the Office of Production Management and which it expects to occupy on or about October 1 ; and
(c)	The construction of a new building in the vicinity of the Social Security Building for completion by January 1, when it is expected that Temporary Building E will be entirely filled.
The Director General requested the cooperation of the members of the Council of the Office of Production Management in this matter and said that he would give it every possible attention.
6.	Lend-Lease Bill
The Director General reported that he would testify on September 26 at the hearings of the House Appropriations Committee on the new Lend-Lease Bill. He requested that he be supplied with data for use in connection with this testimony.
7.	Correction in the Minutes of September 16, 1941
The Executive Secretary corrected Item No. 6 in the minutes of September 16, 1941 by reporting that the Bureau of Research and Statistics now understood that the Under Secretary of the Navy desired them to obtain estimates of materials requirements through the Office of Budget and Reports and that arrangements are proceeding on this basis.
8.	Labor Questions
There was considerable discussion concerning labor problems. The Associate Director General expressed belief that there is a good deal of cooperation on the part of labor and that defense strikes are comparatively few at the present time.
9.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending September 20 (Doc. 4aa).
61
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
10.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending September 22 (Doc. lab) and a report of the personnel changes as publicly announced for the week ending September 22 (Doc. lac).
11.	Activities of the Office of Price Administration
The Executive Secretary placed on file a report of the activities of the Office of Price Administration as publicly announced for the week ending September 22 (Doc. 21u).
12.	Activities of the National Defense Mediation Board
The Executive Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending September 22 (Doc. 19q).
13.	Activities of the Supply Priorities and Allocations Board
The Executive Secretary placed on file a report of the activities of the Supply Priorities and Allocations Board as publicly announced for the week ending September 22 (Doc. 57c).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Julius H. Amberg
Special Asst, to the Secretary of War
Forrestal
Acting Secretary of the Navy
Herbert Emmerich
Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the
Social Security Building, 2:30 p.m., Tuesday, September 30
The following members of the Council were present :
The Director General ; the Secretary of the Navy ; and the Acting Secretary of War, Mr. Robert P. Patterson. .
Also present were: the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. William W. Dulles ; the General Counsel, Mr. John Lord O’Brian; the Acting Executive Secretary, Mr. G. Lyle Belsley; and, for a portion of the meeting, the Chief of the Priorities Branch, Labor Division, Mr. J. Douglas Brown ; and the Assistant General Counsel for Priorities, Mr. Milton Katz.
1.	Rail Transportation of Ore
Secretary Knox reported that Mr. R. L. Williams, the operating head of the Northwestern Railroad, had suggested that ore cars be more extensively used for shipping ore from the Minnesota area. This would facilitate the transportation of ore, particularly in winter months, and would be feasible if a new rate were established for rail shipments.
The Director General was requested to bring these observations to the attention of appropriate officials in the Office of Production Management.
2.	Affidavits for Contractors Seeking Machinery and Tools
The Director General reported that in numerous instances industrial firms and contractors have sought
tools and machinery even though similar tools and machinery were already available for use. He cited examples and suggested that in such cases appropriate affidavits should be requested from contractors. The Under Secretary of the Navy suggested that the Army and Navy might be given an opportunity to review the needs of the larger industrial plants. The Director General suggested that representatives of the Office of Production Management should be enabled to participate in the planning of machine tool use under subcontracting arrangements. After further discussion, and upon the recommendation of the Director General, it was agreed that:
Contractors seeking additional machinery or tools will be requested to furnish an affidavit stating that they do not already possess or have satisfactory access to sufficient and appropriate machinery or tools.
3.	Enforcement of Allocation Orders
The General Counsel presented recommendations for an enforcement procedure to be followed in the case of the Central Pattern and Foundry Company of Chicago, Illinois, (Doc. 63),43 together with a memorandum from the Director of Priorities relating
43 Memorandum, John Lord O’Brian to the Council, September 30, 1941.
The following steps are recommended: (1) An investigation, already, made, of the books and records of the company; (2) a determination that the General Preference Order has been violated; (3) a letter from the Director of Priorities to the company stating specific violations and advising that allocations are suspended and that the company has ten days to two weeks to answer charges; and (4) full publicity regarding the case.
62
SEPTEMBER 23 AND 30 AND OCTOBER 7, 1941
to the case (Doc. 63a). Mr. Milton Katz, the Assistant General Counsel for Priorities, reviewed the evidence of aluminum “bootlegging” by the Company, and discussed the proposed procedure for enforcement of priority orders. After discussion it was agreed that:
The recommendation of the General Counsel for enforcement of the General Preference Order for aluminum against the Central Pattern and Foundry Company will be followed; and
The enforcement procedure recommended by the General Counsel in the Central Pattern and Foundry Company case will be followed in all cases arising from the violation of allocation, limitation, or similar orders.
4.	Labor Questions
The Director General reported that a series of departmental strikes in the Lincoln Mills of Alabama had led to a lock-out on September 26. He explained that a dispute had arisen between the management and the Textile Workers Union of America, C.I.O., over the terms to be included in a new collective bargaining contract. The case was certified to the National Defense Mediation Board on July 28, 1941, and by September 17 the Board has succeeded in bringing the parties to an agreement on all issues except that of union security. On the union security issue the Board recommended a maintenance of membership clause with provision for resignation from the union for legitimate reasons and with provision for a joint management-labor board to review the legitimacy of the reasons in particular cases. Because of the failure of the management to accept this recommendation, no contract has been signed, and the Board in issuing its recommendation has exhausted its powers to settle the dispute. The Lincoln Mills hold a number of Army and Navy contracts for heavy cotton materials that are not readily obtainable elsewhere. The Director General stated that he is engaged in negotiations with the management regarding the labor problems that have developed.
5.	Priorities Division Report
The Acting Executive Secretary placed on file a report of the Priorities Division for the week ending September 27 (Doc. 4ab).
6.	Activities and Personnel Changes of the Office of Production Management
The Acting Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending September 29 (Doc. lad) and a report of the personnel changes as publicly announced for the week ending September 29 (Doc. lae).
7.	Activities of the Office of Price Administration
The Acting Executive Secretary placed on file a report of the activities of the Office of Price Administration as publicly announced for the week ending September 29 (Doc. 21v).
8.	Activities of the National Defense Mediation
Board
The Acting Executive Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending September 29 (Doc. 19r).
9.	Activities of the Supply Priorities and Allocations Board
The Acting Executive Secretary placed on file a report of the activities of the Supply Priorities and Allocations Board as publicly announced for the •week ending September 29 (Doc. 57d).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Acting Secretary of War Frank Knox
Secretary of the Navy
G.	Lyle Belsley
Acting Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen s Office at the Social Security Building, 2:30 p.m., Tuesday, October 7
The following members of the Council were present:
The Director General; the Acting Secretary of War, Mr. Robert P. Patterson; and the Acting Secretary of the Navy, Mr. James V. Forrestal..
Also present were: the Chief of the Priorities Branch, Labor Division, Mr. J. Douglas Brown, who represented the Associate Director General; the Special Assistant to the Secretary of War, Mr. Julius
H.	Amberg ; the Special Assistant to the Under Secretary of the Navy, Mr. William W. Dulles; the General Counsel, Mr. John Lord O’Brian ; and the Acting Executive Secretary, Mr. G. Lyle Belsley.
1.	Release of Information Regarding Aircraft Production
The Under Secretary of War questioned the advisability of releasing figures regarding the produc
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tion of airplanes, and expressed the view that such figures should be regarded as confidential. The Director General stated that he understood that the release of such information had been based upon Presidential authorization. After further discussion, it was agreed that:
The Office of Production Management recommends to the President that figures regarding the production of aircraft should not be released for publication, and requests the Director General to present this recommendation to the President for his decision.
2.	Lincoln Mills Labor Dispute
The Director General reported on his progress in obtaining a settlement of the dispute between the workers and management of the Lincoln Mills of Alabama. He explained that he was undertaking to secure acceptance of the recommendations made by the National Defense Mediation Board on September 17. There was discussion of the importance of maintaining the prestige of the Board as a means of increasing the stability of labor relations in the defense program.
3.	Proposed Executive Order on Requisitioning
The General Counsel called attention to the fact that the Army has drafted an Executive Order to implement pending legislation on the requisitioning of tools and materials needed for national defense. He pointed out that the proposed Order vests in the Army and Navy Munitions Board the authority to make final decisions regarding such requisitioning. The Under Secretary of War stated that the proposed Executive Order requires the Munitions Board to consult the Office of Production Management. The Director General and the General Counsel expressed the belief that a preferable arrangement would be for the President to delegate to the Office of Production Management authority similar to that delegated under Section 9 of the Selective Training and Service Act of 1940. The close relationship among requisitioning authority, control of inventories, and granting of priorities was emphasized as a reason for vesting all three powers in the same agencies. After further discussion it was agreed that:
Further consideration of the proposed Executive Order on requisitioning will be deferred for consideration at the next meeting.
4.	The Currier Housing Contract
The Director General referred to a dispute over whether a contract for housing units in Wayne, Michigan, should be withheld by the Federal Works Administrator from the Currier Mobile Homes, Inc. It was observed that the Labor Division and the Board of Review of the Office of Production Management were of the opinion that the granting of the contract to the Currier Company would not be con
sistent with the best interests of national defense and might interfere with the efficient functioning of the stabilization agreement heretofore entered into between the Building and Construction Trades Department of the American Federation of Labor and the government agencies engaged in defense construction. They, therefore, felt it incumbent upon them to transmit this information to the Federal Works Administrator.
The General Counsel stated that the Currier Case had raised problems in which the Department of Justice had manifested an interest. He read a letter from the Assistant Attorney General, Mr. Thurman Arnold, dated October 4, which stated that the denial of the contract to the Currier Mobile Homes, Inc., based allegedly on the intervention of the Office of Production Management on behalf of the American Federation of Labor, manifested characteristics of restraints upon trade and commerce. The General Counsel also read a letter from the Federal Works Administrator, dated October 6, stating that he had withheld decision in the case because representatives of the Office of Production Management had informed him that signing of the contract might interfere with the orderly prosecution of the essential defense program, and that he believed that further delay in arriving at a decision is undesirable. The General Counsel also read a letter from the Associate Chief Counsel of the Senate Special Committee Investigating the National Defense Program. The letter asked for a statement outlining the labor policy of the Office of Production Management, particularly with respect to agreements with the American Federation of Labor for a closed shop on defense projects, and a report of the reasons causing the Office of Production Management to decline approval of the bid submitted by the Currier Company.
After discussion it was decided that:
Further consideration of the Currier Case will be deferred until the return of the Associate Director General.
5.	Legislative Report
The General Counsel placed on file reports on legislative developments of interest to the Office of Production Management for the weeks ending September 22 (Doc. 64), September 29 (Doc. 64a), and October 6 (Doc. 64b).
6.	Priorities Division Report
The Acting Executive Secretary placed on file a report of the Priorities Division for the week ending October 4 (Doc. 4ac).
7.	Activities of the Office of Production Management
The Acting Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending October 6 (Doc. laf).
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8.	Activities of the Office of Price Administration
The Acting Executive Secretary placed on file a report of the activities of the Office of Price Administration as publicly announced for the week ending October 6 (Doc. 21 w).
9.	Activities of the National Defense Mediation Board
The Acting Executive Secretary placed on file a report of the activities of the National Defense Mediation Board for the week ending October 6 (Doc. 19s).
10.	Activities of the Supply Priorities and Allocations Board
The Acting Executive Secretary placed on file a report of the activities of the Supply Priorities and
Allocations Board as publicly announced for the week ending October 6 (Doc. 57e).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Forrestal
Secretary of the Navy
G. Lyle Belsley
Acting Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, October 14, 1941
The following members of the Council were present:
The Director General and the Secretary of the Navy.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal; the Chief of the Priorities Branch, Labor Division, Mr. J. Douglas Brown, who represented the Associate Director General ; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. Adlai Stevenson;: the Special Assistant to the Under Secretary of the Navy, Mr. William W. Dulles; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Lincoln Mills Labor Dispute
The Director General reported on the progress of his negotiations with the Lincoln Mills of Alabama (see Minutes of September 30, paragraph 4, and Minutes of October 7, paragraph 2). He stated that workers and management had agreed to the recommendation of the National Defense Mediation Board and that the Mills were resuming operations.
2.	Proposed Executive Order on Requisitioning
The General Counsel reported further on proposed Executive Orders to effectuate the requisitioning bill (S. 1579) when it becomes law (see Minutes of October 7, paragraph 3). He stated that two drafts were being presented to the Bureau of the Budget. One draft, (Doc. 35a) which has the approval of the Office of Production Management and representatives of the Army and Navy, provides that the various
procurement agencies of the Government should make recommendations to the Office of Production Management, which in turn should determine the need for, legality of, and appropriate compensation for proposed requisitioning actions. The other draft, being presented by the Liaison Officer for Emergency Management, Mr. Wayne Coy, provides that the several procurement agencies may determine the existence of need for the requisitioning of property, and with the approval of the Office of Production Management requisition and dispose of such property. It was suggested that it was the intention of the second draft to give greater bargaining power to the various procurement agencies, civilian as well a^ military^ in their purchasing of goods that they believe are being withheld at excessive prices. Doubt was expressed as to whether the Congress had intended that the requisitioning power should be used for other, than Army and Navy needs. After further discussion it was agreed that:
The Council of the Office of Production Management endorses for presentation to the President through the Bureau of the Budget the form of Executive Order on requisitioning approved by officials of the Office of Production Management in cooperation with officials of the Army and Navy.
3.	Proposed Conservation Order for Curtailment of Copper Consumption
The General Counsel reported that the Director of Priorities, after consultation with all Divisions of the Office of Producton Management and other agencies affected, had prepared Conservation Order No. M-9-c, curtailing the use of copper in less essential
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
industries. He stated that for manufacturers of certain specified products the proposed order required (1) that between October 15 and December 31, 1941, the amount of copper used shall not exceed 50% of the amount used in the manufacture of such items in the last three months of 1940, and (2) that after January 1, 1942, the use of copper be completely discontinued. For manufacturers of products not specified in the order, consumption of copper for the period between October 15 and December 31, 1941, and for each quarter thereafter, is not to exceed 70% of the amount of copper used in the last three months of 1940. It was pointed out that because of the acute scarcity of copper and the need for copper for national defense requirements, its consumption in products not necessary to national defense or essential civilian requirements has already been curtailed because of priority ratings too low to insure delivery of copper. After discussion it was agreed that :
The Council of the Office of Production Management approves in principle the program for prohibiting and curtailing copper consumption for less essential civilian needs, subject to orders to be issued in such form as may be determined by the Director of Priorities.
4.	100-Octane Gasoline
S^The General Counsel reported receipt of a letter from the Deputy Petroleum Coordinator for National Defense, dated October 11, requesting the Office of Production Management to recommend that the Defense Supplies Corporation undertake a program for purchasing the entire national production of 100-octane gasoline for a governmentally owned stockpile (Doc. 65). It was pointed out that adoption of such a program would permit long-term contracts for such gasoline, and that these in turn would (1) forestall price increases; (2) permit term contracts between refiners and the suppliers of raw materials; (3) stimulate the building of new plants and so increase the production of 100-octane gasoline; and (4) enable more advantageous buying of the components of such gasoline. It was pointed out that the letter of the Deputy Petroleum Coordinator for National Defense was not clear on the question of what agency would be responsible for subsequent allocation of gasoline so purchased. After discussion it was agreed that :
The Council of the Office of Production Management recommends that a purchase program for all 100-octane gasoline be undertaken by the Defense Supplies Corporation, provided, however, that this gasoline will continue to be subject to allocation by the Office of Production Management pursuant to Executive Order No. 8875, dated August 28, 1941, and to the arrangements previously made between the Office of the Petroleum Coordinator for National Defense and the Office of Production Management.
5.	Requisitioning of Tools and Materials for the Union of Soviet Socialist Republics
The Director General reported that he had received and had under consideration requisitions of the Union of Soviet Socialist Republics for large quantities of critical tools and materials, including aluminum, steel plate, machine tools and other items. The Secretary of the Navy pointed out that his most recent information indicated that dockage and transportation facilities to Russia from the United States would not permit a shipment in excess of 15,000 tons per month.
The Director General undertook to scrutinize very carefully the requisitions before him with due attention to the dockage and transportation facilities available for delivery of these materials to Russia and other considerations.
6.	Deepening of the Cuyahoga River
The Director General reported that the Corps of Engineers of the War Department has requested approval of a project for dredging the Cuyahoga River. He pointed out that this dredging was necessary because of the plans for enlarging the Cleveland plant of the Republic Steel Corporation, and accordingly recommended approval of the subject. It was agreed that:
The Council of the Office of Production Management approves the project for the deepening of the Cuyahoga River in Cleveland, Ohio.
7.	Contract Clearances
The Director General raised the question of whether the Army and Navy were proceeding rapidly enough in the letting of contracts and requested them to review their rate of progress.
The Director General reported that he had arranged for the Division of Purchases to handle all contract clearances for the War and Navy Departments, and that the Division of Purchases will procure such further clearance as may be necessary from the Division of Contract Distribution and other Divisions of the Office of Production Management. He stated that the objective of this arrangement is the simplification of contacts between the Office of Production Management and the War and Navy Departments on matters of contract clearance.
8.	The Machine Tool Preference List
The Director General reported receipt of a revised edition of the master preference list from the Machine Tool Committee of the Joint Army and Navy Munitions Board and recommended that it be carefully reviewed to ensure that both subcontractors and prime contractors of defense items appear thereon so that the delivery of machine tools to subcontractors
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OCTOBER 14, 1941
as well as prime contractors making defense items will not be delayed.
Representatives of the Army and Navy undertook to review the machine tool master preference list from this standpoint.
9.	Tank Program
The Director General reported that the tank program had assumed very large proportions and that it now called for the production of 37,500 tanks, including 11,500 light tanks, 25,000 medium tanks, and 1,000 heavy (60 tons) tanks. He pointed out that this enlarged program requires the delivery of increasing quantities of armor plate.
In response to a request of the Director General, the Secretary of the Navy undertook to furnish him with statistics showing (1) projected armor plate production in the next twelve months, and (2) the amount of armor plate that can be spared for use in tank production.
10.	Procedure in Withholding Critical Materials from Producers under Navy Contracts
The Secretary of the Navy reported that, on the recommendation of the Chief of the Bureau of Supplies and Accounts of the Navy Department, Rear Admiral Ray Spear, he was sending a letter to the Director General, requesting that before critical materials are withheld from producers holding Navy contracts the Office of Production Management consult the appropriate naval officers rather than rely entirely on its own direct negotiations with the contractors.
The Director General stated that the procedure requested by the Secretary of the Navy will be followed.
11.	Designation of Representative on the Board of Review
On behalf of the Associate Director General, Mr. J. Douglas Brown recommended designation of Mr. Louis K. Comstock as representative of the Office of Production Management on the Board of Review created pursuant to the Construction Stabilization Agreement approved by the Council on July 22,1941. It was agreed that:
Mr. Louis Comstock is designated as the representative of the Office of Production Management on the Board of Review created pursuant to the Construction Stabilization Agreement approved by the Council on July 22, 1941.
12.	Labor Situation
There was a general discussion of labor disputes in various defense industries and the problem of production delays resulting therefrom. There was general agreement that the morale program, including plant visitations by uniformed officers accompanied by civilian speakers, was having a very good effect and should be intensified.
13.	Legislative Report
The General Counsel placed on file reports on legislative developments of interest to the Office of Production Management for the week ending October 13 (Doc. 64c).
14.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending October 11 (Doc. 4ad).
15.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending October 13 (Doc. lag) and a report of the personnel changes as publicly announced for the week ending October 13 (Doc. lah).
16.	Activities of the National Defense Mediation Board
The Executive Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending October 13 (Doc. 19t).
17.	Activities of the Supply Priorities and Allocations Board
The Executive Secretary placed on file a report of the activities of the Supply Priorities and Allocations Board as publicly announced for the week ending October 13 (Doc. 57f).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Executive Secretary
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700598—46—6
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, October 21, 1941
The following members of the Council were present :
The Director General ; the Associate Director General; the Secretary of the Navy; and the Acting Secretary of War, Mr. Robert P. Patterson.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. Adlai Stevenson ; the Special Assistant to the Under Secretary of the Navy, Mr. William W. Dulles ; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Labor Situation
The Associate Director General, who had just returned from a three weeks’ trip to the Pacific Coast, reported that he had visited numerous plants, and had interviewed many representatives of management, labor, and Government. He was greatly encouraged by the improvement in labor relations on the Coast where labor disputes are now negligible—both management and labor voicing few grievances—and morale in plants is high. The aspects of the defense program which he was informed en route are of outstanding public concern are: (1) “Priorities unemployment” and material shortages; (2) recognized need for aiding small business through extension of subcontracting; and (3) fear of inflation which has created widespread support of price control by the Government.
2.	The Currier Housing Contract
The Associate Director General reported that he is scheduled to testify on October 22 before the Special Committee of the Senate Investigating the National Defense Program. He will inform the Committee that his suggestion to the Federal Works Administrator not to award a contract to the Currier Company (Minutes 10-7-41, paragraph 4) was entirely advisory in character, and that the authority to make a final decision rests with the Federal Works Administrator. The Associate Director General wished the Council to be informed that there was nothing in the Construction Stabilization Agreement which requires or provides for a closed, shop in the construction industry or which would prohibit workers from being employed on projects using prefabricated materials in housing construction.
3.	Tank Program
The Director General pointed out that the tank program is dependent on increased production of engines and that Continental Motors Corporation, which according to plans is to produce most of the
engines, has a schedule which is very tight. The estimates between now and the end of the year for production by the Company vary from 650 engines to 1,000 engines. It was pointed out that the Office of Production Management and the War Department have indicated to the President that 1,400 medium tanks will be produced by December 31, 1941, and that to achieve this production it is essential to grant an A-l-a priority rating. It was agreed that :
The Council of the Office of Production Management recommends to the Army and Navy Munitions Board that a priority rating of A-l-a be assigned to deliveries of items needed in production of medium tanks.
4.	Requisitioning of Tools and Materials for the Union of Soviet Socialist Republics
The Director General reported receipt of requisitions for 1,200 machine tools a month from the Union of Soviet Socialist Republics in addition to the outstanding request of the British Government for 2,100 tools a month. He pointed out that continued export of machine tools in increasing amounts would seriously delay the American production program. After discussion it was agreed that :
It will be the policy of the Office of Production Management not to release for foreign account more than 25 percent of the aggregate production of all machine tools nor more than 25 percent of the production of any one type.
5.	Reports from the Navy Department to the Office of Production Management
The Director General referred to a letter received from the Secretary of the Navy, dated October 17, requesting simplification of forms prescribed for reports by the Navy Department to the Office of Production Management. The Director General pointed out that in order to provide for an adequate supply of raw materials, such as copper, steel, etc., essential to the production of goods needed for defense, the Office of Production Management needs to know the requirements of the War and Navy Departments for materials, articles, and equipment.
The Executive Secretary was requested to: (1) obtain from the Director of the Bureau of Research and Statistics a complete statement of the number and kinds of reports now required from the Navy Department, and (2) ascertain whether or not the existing reports made to the Secretary of the Navy by various bureaus of the Navy could satisfy the requirements of the Divisions of the Office of Production Management.
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OCTOBER 21, 1941
6.	The Machine Tool Preference List
Reference was made to the earlier discussion of the master preference list for machine tool deliveries (Minutes 10-14—41, paragraph 8). It was agreed that :
Both the first and the second subcontractors should be added to the master preference list for machine tool deliveries.
7.	Requirements of Aluminum for Military Uses Other Than Airplanes
The Director General reported that only 8 per cent of the total quantity of aluminum consumed in Great Britain is devoted to military uses other than airplanes, in contrast to the devotion of 25 per cent of aluminum to such uses in the United States.
The War and Navy Departments were requested to re-examine their aluminum requirements for uses other than airplanes, with a view to effecting a reduction in such requirements.
8.	Proposed Executive Order on Requisitioning
The General Counsel reported on the legislative progress of the requisitioning bill.44 He also stated that he had presented to the Bureau of the Budget the views of the Office of Production Management (Minutes 10-14-41, paragraph 2) regarding the type of Executive Order that should be issued after the bill becomes law.
9.	Central Pattern and Foundry Company
The General Counsel reported that in the case of the Central Pattern and Foundry Company a hearing had been held pursuant to the procedure approved by the Council (Minutes 9-30-41, paragraph 3), and that at the hearing the Company admitted the allegations and offered no defense. After the hearing the Director of Priorities issued an order suspending until March 31, 1942, all deliveries of aluminum to the Company, except deliveries necessary to the completion of defense orders already on its books.
10.	Release of Information Regarding Aircraft Production
With reference to the recommendation of the Council regarding public release of aircraft production figures (Minutes 10-7-41, paragraph 1), the
u Public Law 274, 77th Cong., 1st Sess., October 16, 1941.
Director General stated that he had consulted the President, and it was agreed that:
Public release of the monthly figures of airplane ■ production will be discontinued.
11.	Joint Statement on Labor Policy
The Director General read a proposed statement urging management and labor to avoid stoppages in defense industries and strongly recommending the use of the conciliation and mediation services of the Government. It was agreed that :
The Council approves the issue of the statement on labor mediation proposed by the Director General and hopes that the Conciliation Service of the Department of Labor, and the National Defense Mediation Board will join the Office of Production Management in its endorsement.
12.	Legislative Report
The General Counsel placed on file report on legislative developments of interest to the Office of Production Management for the week ending October 20 (Doc. 64d).
13.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending October 18 (Doc. 4ae).
14.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending October 20 (Doc. lai) and a report of the personnel changes as publicly announced for the week ending October 20 (Doc. laj).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Executive Secretary
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, October 28, 1941
The following members of the Council were present:
The Director General; the Associate Director General; the Acting Secretary of War, Mr. Robert P. Patterson; and the Acting Secretary of the Navy, Mr. James V. Forrestal.
Also present were: The Special Assistant to the Secretary-of War, Mr. Julius H. Amberg; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich; and for a portion of the meeting, the Chief of the Bureau of Ships, Department of the Navy, Rear Admiral Samuel M. Robinson.
1.	Immediate T.N.T. Requirements
The Director General raised the question whether during the next few months British requirements of over 4 million pounds of T.N.T. monthly can be supplied without seriously interfering with the immediate minimum needs of the War and Navy Departments. As shown by the following table, production is expected to increase materially during the coming year, but the immediate problem is serious:
Production of T.N.T. (in millions 1941	of pounds)
September (Actual) ...................  7.2
1942
January (Estimated).................... 26.1
May (Estimated)......................  44.0
August (Estimated)..................... 59.6
After discussion it was agreed that:
It would be desirable to retain enough T.N.T. to fill the minimum requirements of the War Department’s loading plants and to permit delivery of between 2 and 4 million pounds a month to the Navy, and the balance should then be made available to the British. The Under Secretary of War will determine the minimum Army requirements for the next few months and whether there is any possibility of a reduction in British deliveries.
2.	New Production and Procurement Programs
The Director General called attention to new programs calling for increased production of military items. He noted the passage of H.R. 5788 appropriating $5,985,000,000 for defense aid.43 He also referred to the proposed bill for a Third Supplemental
46 Second Lend-Lease Appropriation Act, Public Law 282, 77th Cong., 1st 'Sess., October 28, 1941.
National Defense Appropriation totaling over five billion dollars. Approximately one-half of this appropriation will be available for ordnance items, including tanks, and will result in somewhat more than doubling the present schedules for light and medium tanks as well as providing for heavy tanks.
The Under Secretary of War stated that the so-called “Victory Program” mentioned in the press is still only a very tentative plan which is being studied by the War Plans Division of the General Staff, and that it is not at a stage sufficiently advanced to permit the definitive scheduling of requirements. It was agreed that:
The Under Secretary of War will furnish to the Director General schedules of requirements under the new Lend-Lease Act and the Third Supplemental National Defense Appropriation as soon as such schedules are available.
3.	Navy Turbines
The Director General stated that the Power Branch of the Office of Production Management has called attention to delays in the delivery of turbines in which it is interested. He asked the Chief of the Bureau of Ships, Navy Department, Rear Admiral Samuel M. Robinson, whether Navy orders have absorbed the total turbine and gear production capacity of the three large manufacturing companies, General Electric, Westinghouse, and Allis-Chalmers, and whether the Navy work is in every case being given precedence over other orders. Admiral Robinson replied that Naval orders are not only sufficient to tax the capacities of those plants but are actually in excess of them. In many cases the actual construction of ships is ahead of schedule, but there may be a delay in completion of the ships, particularly aircraft carriers, because of the non-delivery of turbines and gears. It was agreed that:
The Chief of the Bureau of Ships, Department of the Navy, will supply information regarding the production capacity for turbines and gears in such form as may be requested by the Director General through the Director of Production.
At this point Rear Admiral Samuel M. Robinson left the meeting.
4.	Guns
The Under Secretary of War stated that orders had been placed for the 4.7" guns and recuperators, and for the wheeled mounts, but that procurement of self-propelled mounts is deferred pending development, test and standardization. The same general situation exists with reference to the 3" anti-tank
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OCTOBER 28, 1941
gun, for which the self-propelled mounts cannot be ordered until the design is tested and standardized.
5.	Army Bills of Lading
The Director General stated that he had received information from the Production Division that Lieutenant Colonel.C. W. Sullivan, Assistant Air Inspector of the Army Air Forces, War Department, has reported that the Air Corps is preparing a revised order authorizing its inspectors and factory representatives to issue bills of lading in the same manner as such bills are issued by the Navy.
The Under Secretary of War agreed to look into the procedure for issuance of bills of lading and to expedite the adoption of the system whereby Air Corps bills of lading will be issued by inspectors and factory representatives.
6.	Progress on Contract Awards
The Director General referred to a report received from the Bureau of Research and Statistics relating to the status of contractual defense funds. He stated that the report indicates that on September 30 the funds still unobligated through contract awards were $13,696,000,000, of which $2,866,000,000 were for planes, $1,468,000,000 for ships, $4,203,000,000 for ordnance, $1,928,000,000 for industrial facilities, and the balance for non-industrial construction, stockpile, and other equipment. The total unobligated balance of the Army was $7,032,OCX),000, of the Navy $2,547,-000,000, of Defense Aid $2,518,000,000, and of other agencies $1,599,000,000.
The Director General urged prompt award of contracts to obligate these funds, pointing out that industries completing old defense orders or converting their facilities from civilian to defense production require new defense orders. He pointed out that the new Lend-Lease Act and the proposed Third Supplemental National Defense Appropriation make even more necessary an accelerated rate of contract placements. It was agreed that:
The War and Navy Departments will inform the Director General of present and prospective progress in the awarding of contracts under available appropriations.
7.	Coal Strike Situation
In view of the threatened strike in the captive bituminous coal mines, the Director General requested the War and Navy Departments to notify him if any plants working on defense contracts run short of coal. He agreed to investigate the possibility of special provision for the urgent cases.
8.	Proposed Executive Order on Requisitioning
The General Counsel reported that the Bureau of the Budget is recommending adoption of an Executive Order on requisitioning that in most respects
conforms to the desires of the Office of Production Management (Minutes 10-7-41, paragraph 3; 10-14-41, paragraph 2; 10-21-41, paragraph 8). Under the recommended Executive Order, (1) applications will come to the Office of Production Management from the various procurement agencies of the Government; (2) the Office of Production Management will make findings and authorize use of the requisitioning power; and (3) the procurement agencies will perform the actual requisitioning.
9.	Tax Certification
The General Counsel stated that an agreement regarding tax amortization procedure has been signed by Mr. Wayne Coy, the Liaison Officer for Emergency Management, Colonel Edward S. Greenbaum, Acting Chief of the Tax Amortization_Section, War Department, and Mr. H. Struve Hensel, Head of the Procurement Legal Division, Navy Department. Under this agreement responsibility would be placed on the Office of Production Management for supervision over the granting of certificates of Government protection and certificates of reimbursement, whereas in the past it has been only concerned with certificates of necessity, with regard to which it was simply an adviser to the Advisory Commission to the Council of National Defense, and the War and Navy Departments. The General Counsel expressed the view that work of this character was not properly a function of the Office of Production Management, and it should not be required to undertake responsibility for supervising certificates of Government protection and certificates of reimbursement, particularly because it has neither the information nor the experienced personnel necessary to proper performance of such a function. He also regarded the proposed system of spot checking as impracticable.
10.	Delays in Delivery of Defense Materials
The Director General inquired whether the War and Navy Departments have any complaints with respect to delays in the delivery of defense materials. The Under Secretary of War replied that at the present time the only delays that he knows are in the delivery of stainless steel and structural steel. It was agreed that:
Lieutenant Colonel Willis R. Slaughter of the Steel Committee, Army and Navy Munitions Board, will submit specific complaints regarding delays in the delivery of stainless steel and structural steel to the Chief of the Iron and Steel Branch, Office of Production Management.
11.	Certification in Washing Machine Industry
The Under Secretary of War raised the question whether the Office of Production Management under certification of distress conditions should recommend to the War and Navy Departments that remedial steps be taken when bids have already been submitted
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
by contractors. He pointed out that Iron Fireman Manufacturing Company had done a good deal of preliminary work on ordnance items and was deprived of the award late in the negotiations by a recommendation by the Office of Production Management that the award be placed with companies in the washing machine industry at prices above those quoted by the Iron Fireman Company whose normal business is also being curtailed as a result of the defense program.
12.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the week ending October 27 (Doc. 64e).
13.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending October 25 (Doc. 4af).
14.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management
as publicly announced for the week ending October 27 (Doc. lak) and a report of the personnel changes as publicly announced for the week ending October 27 (Doc. laL).
15.	Activities of the National Defense Mediation
Board
The Executive Secretary placed on file reports of the activities of the National Defense Mediation Board as publicly announced for the week ending October 20 (Doc. 19u), and for the week ending October 27 (Doc. 19v).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Frank Knox
Secretary of the Navy
Herbert Emmerich
Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, November 4, 1941
The following members of the Council were present:
The Director General; the Associate Director General; the Secretary of the Navy; and the Acting Secretary of War, Mr. Robert P. Patterson.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. Adlai Stevenson; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Competitive Bidding and Negotiated Bids
The Director General reported that the Los Angeles Chamber of Commerce has complained that a contract has been awarded by the Navy Department to a company in Evansville, Indiana, which is a distressed community, instead of to the low bidder, the Thermador Electric Company of Los Angeles. The Special Assistant to the Under Secretary of the Navy stated that the Chief of the Bureau of Supplies and Accounts, Navy Department, Rear Admiral Ray Spear, has informed him that the Los Angeles Chamber of Commerce erred in its statement of the facts.
The Under Secretary of War referred to the previous discussion of certification of distress conditions
as a basis for awards of contracts (Minutes 10-28-41, paragraph 11), and said that he had received further information with regard to the case of the Iron Fireman Manufacturing Company indicating that the bid of this Company was higher than the bids of companies in the washing machine industry to which the contract was awarded, and he wished to correct the record accordingly.
It was pointed out that certifications of distress conditions have been made from time to time when proposals for competitive bids were outstanding. Upon recommendation by the Director General it was agreed that:
Formal competitive bidding will not be invited on contracts which are planned to be negotiated with distressed communities or industries.
2.	Ammunition Orders
It was reported that the War Department is retaining a substantial amount of contract authorization for use in connection with distressed areas certified by the Division of Contract Distribution, but it was pointed out that ammunition plants where special machinery has already been installed would be without work unless new orders were placed with them upon completion of their present orders. Accordingly it was agreed that:
72
OCTOBER 28 AND NOVEMBER 4, 1941
The War Department will undertake to maintain continuity of production in ammunition plants by placing orders with them when their present orders expire.
3.	Armored Cars
The Under Secretary of War informed the Director General that four types of armored cars are under study, and supplied him with data concerning them. The four models in question are: T-17; T-17-E-l; T-18; and T-22.
4.	Aircraft Plant Location
The Director General stated that the Plant Site Board is considering new locations for airplane plants and desires to avoid placing more plants on the seaboard or in areas that already have a large congestion of industry and a possibility of labor shortage. He pointed out that Atlanta, Georgia, Cleveland, Ohio, and Indianapolis, Indiana, are under consideration and that northern locations, such as Minneapolis, are unsuitable because weather conditions interfere with flying. The Under Secretary of War requested that airplane plants be placed in climates favorable to flying, and pointed out that in the case of heavy bombers the large amount of outdoor work necessitated by their size is a further important reason for avoiding the location of airplane factories at more northerly points. The Associate Director General suggested consideration for the Chicago area, and undertook to investigate the possibility that the Indianapolis area is already congested and has a shortage of labor.
5.	Navy Appropriations and Obligations
The Under Secretary of the Navy reported that in computing what Navy funds are available for immediate contract obligation, a distinction should be made between certain items which are of a deferred character and on which the Navy is not prepared to let contracts, and those which can be presently obligated. It was agreed that:
The Navy Department will furnish the Director General with a schedule showing the items of a deferred character, and those that are available for immediate letting of contracts.
6.	Bureau of Industry Committees
The Executive Secretary submitted Regulation No.’ 7-A (Doc. 22g) changing the name of the Bureau of Clearance of Defense Industry Advisory Committees to Bureau of Industry Advisory Committees. It was agreed that:
Regulation No. 7-A, changing the name of the Bureau of Clearance of Defense Industry Advisory Committees to Bureau of Industry Advisory Committees, is approved.
7.	Labor Problems among Welders on the Pacific Coast
The Associate Director General reported for the information of the Council that a group representing certain welding workers from the Pacific Coast had called on him. He is informed that there is a cessation of work by many welders in shipyards. His suggestion that the men resume work and be restored to their former positions without discrimination or penalty of any kind, and that a conference be held between representatives of the welders’ groups, representatives of interested labor organizations, and representatives of the Office of Production Management has so far been rejected. The situation is not clear, but it appears that some of the welders desire to form an independent union.
8.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the week ending November 1 (Doc. 64f).
9.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending November 1 (Doc. 4ag).
10.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending November 3 (Doc. lam) and a report of the personnel changes as publicly announced for the week ending November 3 (Doc. Ian).
11.	Activities of the National Defense Mediation
Board
The Executive Secretary placed on file a report of the activities of the National Defense Mediation Board as publicly announced for the week ending November 3 (Doc. 19w).
12.	Activities of the Supply Priorities and Allocations Board
The Executive Secretary placed on file a report of the activities of the Supply Priorities and Allocations Board as publicly announced for the week ending November 3 (Doc. 57g).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General Robert P. Patterson
Under Secretary of War Frank Knox
Secretary of the Navy Herbert Emmerich
Executive Secretary
73
MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Wednesday, November 12, 1941
The following members of the Council were present :
The Director General; the Associate Director General; the Acting Secretary of War, Mr. Robert P. Patterson; and the Acting Secretary of the Navy, Mr. James V. Forrestal.
Also present were: The Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Shortage of Aluminum and Steel Forgings
V The Director General referred to a letter dated November 10, written to the Office of Production Management by the Under Secretary of War, calling attention to the adverse effect on the airplane program of a shortage of aluminum and steel forgings. The Under Secretary of War said he is advised that this situation is caused by a shortage of dies which in turn has been brought about by die sinkers being inadequate in number and unwilling to have part of the die work performed by other craftsmen. In consequence, the hammer shop of the Cleveland forging plant of the Aluminum Company of America, for example, is operating at only 60 to 70 percent of capacity.
The Associate Director General reported that there had been a meeting in Cleveland on October 25 and 26 of representatives of the International Die Sinkers Conference, an independent union, and representatives of eighteen manufacturers. Also at the meeting were representatives of the War Department Ordnance, Air Corps, and Navy Ordnance. The results of the meeting were substantially as follows: (1) a complete understanding on the part of the union and employers with respect to dilution and number of apprentices; and (2) a disagreement in connection with the demand for a 20 percent wage rate increase. According to the Associate Director General, Major Estes of the Department of Labor, who is handling this matter, has expressed the opinion that a decision within a few days is in prospect.
2.	Torpedo Planes—Navy TBR-1 Type
The Office of Production Management has been informed that the Navy has accepted for production the model developed by the Grumman Aircraft Engineering Corporation, and that the Navy is very anxious to step up the production schedules for torpedo planes. The Director General undertook to see what can be done about increasing the schedules, and also asked that the Navy give consideration to converting dive bombers into torpedo planes by attach
ing a cradle to them, and so relieve the shortage of torpedo planes for the time being.
3.	20-MM Hispano-Suiza Gun
The Under Secretary of War reported on testing and design problems and production delays on this gun. Until last year the British had urged the use of a .303 gun, but the increase in the armor of planes has made a heavier gun necessary. The Eclipse Machine Division of the Bendix Aviation Corporation has a contract for 13,249 of the 20-mm Hispano-Suizat guns, but its production results have fallen below expectations for various reasons. There are also orders outstanding for 11,914 guns with Olds Motor Company; for 13,500 guns with Munitions Manufacturing Company, a subsidiary of the International Business Machines Corporation; and for 9,000 guns with International Harvester Company. In all, 47,663 guns are on order; 40,000 for British account, and 7,663 for the United States.
The Under Secretary of War stated that in the near future tests will be made at Wright Field in firing the several types of the 20-mm Hispano-Suiza gun from airplanes under flying conditions, and that he is hopeful that if these tests are successful the most satisfactory design will be frozen and production schedules accelerated.
4.	Proposed Executive Order on Requisitioning
The General Counsel reported that although the Executive Order on the Requisitioning Bill as submitted by the Bureau of the Budget is not in the form recommended by the Office of Production Management, it has been decided that the Office of Production Management will withhold objection to the proposed Order in order to expedite its execution. The Order has not been signed by the President.
5.	Authority to Appoint $1.00-a-year Men
The Director General informed the Council that the President had delegated to the Director General and the Associate Director General the authority to appoint $1.00-a-year men, and he submitted for the record a statement (Doc. 8a)46 describing the standards which the Office of Production Management will qbserve with regard to these appointments.
6.	Plumbing Code
The General Counsel stated that the Attorney General had disapproved the promulgation of a plumbing code by the Office of Production Manage-
48 Office of Production Management Administrative Order 30, ap,. proved October. 30, 1941.
74
NOVEMBER 12 AND 18, 1941
ment which went further than conserving materials needed for national defense.
7.	Steel Situation
The Director General reported a satisfactory conference with the steel industry on November 11, and believed that by January of next year the conversion of strip mills to the manufacture of plate would begin to relieve the acute situation of plate shortage.
8.	Unobligated Authorizations of the Navy Department
The Under Secretary of the Navy informed the Director General that a survey of authorizations, exclusive of Defense Aid, indicates that there was a contractual unobligated balance of $2,272,763,000 as of October 31, 1941, and that it was impracticable to have obligated $1,736,963,750 of this amount prior to that date. Of total Defense Aid allocations to the Navy of $1,160,399,000 to October 31, there remained a contractual unobligated balance of $249,-954,200, of which it was impracticable to have obligated $133,096,539 prior to that date.
9.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending November 8 (Doc. 4ah).
10.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending November 10 (Doc. lao) and a report of the personnel changes as publicly announced for the week ending November 10 (Doc. lap).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General Robert P. Patterson
Under Secretary of War Forrestal
Secretary of the Navy
Herbert Emmerich
Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Tuesday, November 18, 1941
The following members of the Council were present:
The Director General; the Associate Director General; the Secretary of the Navy; and the Acting Secretary of War, Mr. Robert P. Patterson.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Ordnance and Shell Program
The Under Secretary of War stated that he has instructed the Ordnance Department of the War Department to give small concerns an opportunity to bid on contracts for the production of metal components in the ammunition program. Much of this work is technical in nature and Ordnance officers in the field are reluctant to use inexperienced companies for such work. The Director General believes that there are a number of questions needing clarification between District Ordnance officers and the Division of Contract Distribution. He proposes, together with the Chief of Ordnance, War Department, Major General Charles M. Wesson, to call a meeting of
representatives of the field offices of the Ordnance Department and representatives of the Division of Contract Distribution of the Office of Production Management, for discussion of ordnance procurement.
2.	Inventory
The Director General referred to the problem of determining the type and frequency of inventory reports to be requested of the Army and Navy, and requested that the Army and Navy inform him whether a six-weeks’ supply of material in non-fab-ricated form is termed an adequate inventory, particularly in the case of materials under mandatory control.
3.	Radar Equipment
The Under Secretary of the Navy stated that the need for all radar equipment is extremely urgent and that priorities necessary for its manufacture should be granted. The Director General reported that arrangements are being made for quick delivery of machine tools needed to make radar equipment, and that he expects that one company that makes radar equipment will be able to ship 15 machines a week by December 20, 1941, and 20 machines a week by January 15, 1942.
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
4.	Steel Expansion
H^The Director General reported that the program for expanding steel capacity is proceeding on the basis of military urgency in the following order of
preference :
(1)	Blast furnaces for pig iron
(2)	Electrical furnaces for alloy steel
(3)	Finishing facilities for alloy steel
(4)	Armor plate for tanks, gun shields, and aircraft
The Director General also said that the conversion of strip mills to the production of plate is proceeding satisfactorily and that it is expected that mills having the following annual capacity will have been converted by these dates :
Increase in
Tonnage Capacity
Date	( Cumulative )
1941
December 31 ........................ 204,000
1942 March 31 ......................... 480,000
June 30 ...........................  960,000
December 31 ...................... 1,368,000
5.	Proposed Executive Order on Requisitioning
The General Counsel reported on further developments with respect to the proposed Executive Order on requisitioning (Doc. 35b). He stated that according to the present draft of the Order the power to approve prices would be vested in the Office of Price Administration. It was his view that such a provision makes the proposed Order even less satisfactory than the previous draft, to which the Office of Production Management had reluctantly agreed. It was agreed that:
The General Counsel is authorized to inform the Director of the Bureau of the Budget that the Office of Production Management is opposed to the proposed Executive Order on requisitioning in its present form, and to request that the power to determine the amount of fair and just compensation to be paid be conferred either solely upon the agency which does the requisitioning or upon that agency “after consultation with the Office of Price Administration.”
6.	“Defense Record" and "Defense Progress"
The Executive Secretary referred to a letter from the President, dated November 10, relating to the distribution and contents of “Defense Record” and “Defense Progress.” The President directed that the circulation of “Defense Record” be restricted to 13 officials, as follows : The President, the Vice President, the Secretary of War, the Secretary of the Navy, the Special Assistant to the President supervising the defense aid program, the Director General
of the Office of Production Management, the Associate Director General of the Office of Production Management, the Administrator of the Office of Price Administration, .the Lend-Lease Administrator, the Executive Director of the Supply Priorities and Allocations Board, the Under Secretary of War, the Under Secretary of the Navy, and the President’s special representative to Great Britain with the rank of Minister.
The President indicated that each recipient should be responsible for maintaining the secrecy of the “Defense Record,” and for controlling its use by members of his staff.
With respect to the publication, “Defense Progress,” the President directed that a committee representing the Army and Navy Intelligence Divisions and the Office of Production Management formulate a policy regarding its contents.
7.	Machine Tools
In accordance with a recommendation received from the Director of Production, it was agreed that :
Contracts calling for machine tools will not receive approval of the Office of Production Management except after examination and recommendation by the Tools Branch; and the War and Navy Departments are requested to direct the Service Bureaus and Branches, when they submit contracts for clearance, to furnish, or assist the Tools Branch in obtaining, such information as the Tools Branch needs to satisfy itself that the machine tools in such contracts are actually required.
8.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending November 15 (Doc. 4ai).
9.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending November 17 (Doc. laq) and a report of the personnel changes as publicly announced for the week ending November 17 (Doc. lar).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Frank Knox
Secretary of the Navy Herbert Emmerich
Executive Secretary
lb
NOVEMBER 18 AND 25, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.mM Tuesday, November 25, 1941
The following members of the Council were present:
The Director General; the Associate Director General; the Secretary of the Navy; and the Acting Secretary of War, Mr. Robert P. Patterson.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. Adlai Stevenson; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Det-mar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Standardization of Bomb Sight
The Director General renewed his recommendation (Minutes 7-22-41, paragraph 1-b), that bomb sight equipment on aircraft be standardized as a means of expediting production.
The Secretary of the Navy stated that he will reconsider this recommendation.
2.	Leak-Proof Rubber Fuel Tanks
The Director General stated that there has been some delay in the production of aircraft by reason of questions which have arisen as to the efficiency and deliveries of the leak-proof rubber fuel tanks. While he has recently received a reassuring report from the B. F. Goodrich Company, which pioneered in this type of equipment, he requested that an independent check be made.
The Under Secretary of War stated that he will obtain information from the Air Corps regarding the deliveries and the efficiency of the leak-proof rubber fuel tanks.
3.	Tank Program
The Director General reported that there are now two temporary alternatives to the use of aviation engines in medium tanks, either of which will assist in expediting tank production; namely, the twin Diesel engine and a combination of five Plymouth engines. He stated that if, on the basis of Army tests, their use is approved, there will be no delay in greatly increased tank production.
4.	Ford Airplane Engine
The Director General referred to a letter submitted to him by Mr. Charles Sorenson of the Ford Motor Company for clearance prior to its transmission to the Rt. Hon. J..T. C. Moore-Brabazon, Minister of Aircraft of Great Britain, which provides detailed
information regarding the Ford Motor Company’s liquid-cooled aircraft engine. It was agreed that:
The Director General is authorized to approve transmission of the letter of Mr. Charles Sorenson of the Ford Motor Company to the Rt. Hon. J. T. C. Moore-Brabazon, Minister of Aircraft of Great Britain, regarding the Ford Motor Company’s liquid-cooled aircraft engine.
5.	Office Space Situation in Washington
The Executive Secretary reported on a conference concerning provision of additional space for the War and Navy Departments and other defense agencies. He stated that the conference was attended by the Commissioner of Public Buildings, Mr. W. E. Reynolds ; the Director of the Bureau of the Budget, Mr. Harold D. Smith; and representatives of the Treasury Department, War Department, Navy Department, Office of Production Management, and Office for Emergency Management. An incomplete estimate reveals a space shortage of 800,000 square feet. The Under Secretary of War amplified this report by stating that it was the consensus of opinion of those present that temporary buildings should be erected on sites that are immediately available and not likely to occasion objections by other agencies. He referred to the crowded condition of the Ordnance Department of the War Department in the Social Security Building. He reported that the War Department is considering a project for the erection of a building that would provide 450,000 square feet of space and that would probably be located on the site of the Army War College. This would permit War Department units in the Social Security Building to move and release space to the Office of Production Management.
6.	Executive Order on Requisitioning
The General Counsel reported on Executive Order No. 8942, dated November 19, 1941 (Doc. 35c), which provides for the administration of the statutory power to requisition property required for national defense. He stated that the Order confers the power to determine the amount of fair and just compensation to be paid, solely upon the agency which does the requisitioning, and that it omits reference to the Office of Price Administration (Minutes 11-18-41, paragraph 5).
The General Counsel was requested to give prompt attention to the drafting of such rules and regulations as may be necessary to carry out the provisions of Executive Order No. 8942, and as provided in the Order, will then submit these rules and regulations to the Supply Priorities and Allocations Board for its approval.
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
7.	Inventory
The Secretary of the Navy and the Under Secretary of War stated that, pursuant to the request of the Director General (Minutes 11-18-41, paragraph 2), they will report at the meeting of December 2 as to whether a six weeks’ supply of material in non-fabricated form is deemed an adequate supply, particularly as to those materials that are under mandatory control.
8.	Subcontracting
The Director General referred to the question of subcontracting and stated that there are many simple parts being produced by the Hudson Motor Car Company and by the Navy arsenals which might, be referred to subcontractors if subcontracting specialists were stationed at the plants and charged with this responsibility.
The Under Secretary of the Navy stated that he would undertake a study of this suggestion.
9.	Duplication in Plant Visits
The Director General stated that his attention has been called to the lack of coordination on the part of the officials of the War Department and the Office of Production Management in planning their visits to plants engaged in defense work. He was recently advised that within a single week, a plant was visited on three different occasions regarding the same matter by representatives of these two organizations. He urged that steps be taken to eliminate such duplications.
10.	Clearance of Contracts by Division of Purchases
The Executive Secretary submitted Regulation No. 2-A (Doc. 3e) authorizing the Director of Purchases to review for clearance, prior to award, all proposals for purchase or construction which would require new construction of production facilities or extensive new machine tool equipment, regardless of the cost of the proposed contract. It was agreed that:
Regulation No. 2-A is approved.
11.	Tax Certification
The Director General reported that the President has requested the Director General to appoint a special committee on tax amortization under Public Law No. 285, 77th Congress, 1st Session, amending section 124 of the Internal Revenue Code. The Director General, in accordance with the President’s request, has designated as Chairman, Mr. Floyd B. Odium, Director of the Division of Contract Distribution, and as members, Mr. Donald M. Nelson, Executive Director of the Supply Priorities and Allocations Board, and Mr. Leon Henderson, Director of the Division of Civilian Supply. The chairman has been given full responsibility for the personnel employed by the committee. The Office of Pro
duction Management appears to have no defined • responsibility for the work of this committee, and will regard it as an independent body, giving it such assistance in the way of personnel and space as it may require.
12.	Special Committee Investigating the National Defense Program
The Council discussed the continued criticism by Senator Harry S. Truman, Chairman of the Special Committee Investigating the National Defense Program, and others, of $1.00-a-year men in the Office of Production Management and other defense agencies. This committee has again requested certain information concerning $1.00-a-year men and consultants in the Office of Production Management. The question was raised whether a public letter should be sent to Senator Truman offering to fdrnish the facts concerning these men, and to terminate the services of any of them who could be shown to have exercised their authority improperly, or to have shown favoritism to their own firms. It was the consensus of opinion that no public action will be taken with respect to information concerning $1.00-a-year men, but such information as is requested by the Special Committee Investigating the National Defense Program will be furnished in the regular manner.
13.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the week ending November 22, 1941 (Doc. 64g).
14.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending November 22, 1941 (Doc. 4aj).
15.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending November 24 (Doc. las) and a report of the personnel changes as publicly announced for the week ending November 24 (Doc. lat).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General Robert P. Patterson
Under Secretary of War Forrestal
Secretary of the Navy
Herbert Emmerich
Executive Secretary
78
NOVEMBER 25 AND DECEMBER 2, 1941
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 1:30 p.mM Tuesday, December 2, 1941
The following members of the Council were present :
The Director General; the Secretary of the Navy; the Acting Secretary of War, Mr. Robert P. Patterson; and the Chief of Priorities Branch, Labor Division, Mr. J. Douglas Brown, who represented the Associate Director General.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. Adlai Stevenson; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Standardization of Bomb Sight
The Secretary of the Navy reported that pursuant to the request of the Director General (Minutes 11-25-41, paragraph 1), the Navy Department has reconsidered the possibility of releasing the Norden bomb sight to the British and other governments but that it is still unwilling to do so for military reasons.
2.	Leak-Proof Rubber Fuel Tanks
The Director General referred to the previous discussion of leak-proof rubber fuel tanks (Minutes 11-25-41, paragraph 2), and stated that he has received reports from Wright Field that the defects in the tanks have been corrected and that at the present time no planes are awaiting the delivery of tanks.
3.	Inventories of Materials
The Secretary of the Navy stated that the Navy Department will file a written report in reply to the request of the Director General for information on inventory requirements of the armed services (Minutes 11-18-41, paragraph 7). The Under Secretary of War stated that except for semi-fabricated items, such as forgings and castings, the War Department is prepared to accept as adequate a six to eight weeks’ supply of materials under mandatory control.
4.	Radar Equipment
The Under Secretary of the Navy suggested that in order to expedite production of radar equipment the Director General work with the Chief of the Bureau of Ships, Admiral S. M. Robinson, in making the necessary plans for freezing the design of these machines. The Director General reported that the current production program appears favorable and that he expects the delivery of 57 machines of the searching type in December and 70 machines in January (Minutes 11-18-41, paragraph 3). In addition,
he expects the delivery of 72 machines of the fire control type in December and 103 machines in January.
5.	Trucks for Lend-Lease Program
The Director General reported that the requisitions for the British and Russian Governments call for United States Army specifications for all trucks. He stated that production of American military trucks is concentrated in three plants and that the supply is not sufficient to meet the requirements of the United States Army. He, therefore, inquired whether the British, and particularly the Russians, could be induced to accept standard commercial trucks which the Director of Materials, Mr. W. L. Batt, on his return from Russia, had reported would be satisfactory. It was agreed that :
The Director General will discuss with the Lend-Lease Administrator, Mr. E. R. Stettinius, Jr., the possibility of filling the Russian truck orders by substituting standard commercial trucks for those built according to the United States Army specifications.
6.	Aluminum Destroyer
In answer to a question whether the proposal for an all aluminum destroyer is official, the Secretary of the Navy replied that it is not.
7.	Quantity Contract Authorizations for the Army
The Director General recommended that, in connection with future appropriation bills, the War Department request contract authorizations providing for the purchase of stated quantities of completed products. He pointed out that the experience of the Navy Department which has this privilege indicates that such legislation would enable the War Department to coordinate the issuance of orders with the rate of production.
8.	20-mm Hispano-Suiza Gun
The Director General exhibited samples of the 20-mm Oerlikon gun which is made by the Pontiac Motor Company and costs approximately $4500, and of the Hispano-Suiza 20-mm gun which is made by the Olds Motor Company and the Bendix Aviation Corporation and costs approximately $950. He stated that some attention might be given to simplifying the design of the Oerlikon gun.
9.	37-mm and 3" Anti-Aircraft Guns
The Director General inquired as to the future requirements for the 37-mm gun, which is being replaced by the Bofors 40-mm, and for the 3" gun
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MINUTES OF OFFICE OF PRODUCTION MANAGEMENT COUNCIL
which is out of production. He stated that preliminary information indicates that 1100 anti-aircraft guns per month will be needed and that requirements of this magnitude will necessitate a large increase of production. The Under Secretary of War stated that the War Department will provide information as to the future requirements for the 37-mm, the and the Bofors 40-mm anti-aircraft guns.
10.	Incendiary Bombs
The Director General pointed out that both the quality and the type of bombs to be produced are important in determining magnesium requirements. He requested that the Office of Production Management be provided with information as to the quantity of steel and thermite type bombs that are contemplated for future production and the quantity of magnesium needed.
11.	Executive Order on Requisitioning
The General Counsel reported that the Office of Production Management is prepared to assign to the Director of Priorities authority for the administration of the statutory power to requisition property required for national defense which was delegated to the Office of Production Management by the President under Executive Order No. 8942. It was agreed that:
The authority vested in the Office of Production Management by Executive Order No. 8942, relating to the statutory power of requisitioning property required for national defense shall be delegated to the Director of Priorities.
12.	"Defense Record"
The Executive Secretary reported that in addition to the thirteen names specified by the President,
(Minutes 11-18-41, paragraph 6) the name of Colonel W. J. Donovan, Coordinator of Information, has been added to the list of persons to receive the secret "Defense Record."
13.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the week ending November 29, 1941 (Doc. 64h).
14.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending November 29, 1941 (Doc. 4ak).
15.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending December 1 (Doc. lau) and a report of the personnel changes as publicly announced for the week ending December 1 (Doc. lav).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Forrestal
Secretary of the Navy
Herbert Emmerich
Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Monday, December 15, 1941
The following members of the Council were present:
The Director General ; the Associate Director General; the Acting Secretary of War, Mr. Robert P. Patterson ; and the Acting Secretary of the Navy, Mr. James V. Forrestal.
Also present were: The Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Assistant Secretary of the Navy, Mr. Ralph A. Bard ; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar ; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Contact Clearances
The Director General referred to a letter dated December 13, 1941, written by the Under Secretary of War (Doc. 7a). The Under Secretary of War explained that he is trying to expedite procurement procedures by reducing the number of contract clearances required in the War Department and the Office of Production Management in Washington, and by having clearance of contracts decentralized as much as possible to the field offices of the War Department. He estimated that it now takes 30 days for a contract to be cleared in Washington by the Supply Arms and Services, by the Office of the Under Sec
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DECEMBER 2 AND 15, 1941
retary of War, and by the Office of Production Management. He proposed to permit field officers of the Air Corps and Ordnance Department to award new contracts for both construction and supplies in the amount of less than $5,000,000, and to award supplemental contracts in the amount of less than $1,000,000 and to have only those contracts involving larger amounts submitted to the War Department and the Office of Production Management in Washington for clearance prior to award. He believes that the final clearance with the Office of Production Management is already largely formal. In every possible case he expects the Office of Production Management to act on clearances in 48 hours, and suggests that in order for the Office of Production Management to have full opportunity to assist the Army, additional representatives of the Office of Production Management should be stationed in the various offices of the Army.
The Director General indicated that 24,713 supply contracts involving more than $10,000 have been awarded; 550 contracts were for amounts between $1,000,000 and $2,000,000 ; 354 contracts were for amounts between $2,000,000 and $5,000,000 ; and 385 contracts were for more than $5,000,000.
The Director General recommended that the proposals outlined in the letter of the Under Secretary of War be amended as follows:
1.	The Plant Site Board shall continue to function as at present;
2.	Clearance of contracts in the amount of more than $500,000 is to be delegated to the representatives of the Office of Production Management stationed in the field offices of the Army;
3.	Field representatives of the Office of Production Management are to exercise the authority now vested in the Director General to approve or disapprove contracts of the amounts specified;
4.	All due effort will be made to spread production through subcontracting and other arrangements.
The Director General requested the Under Secretary of War to call a joint conference between the heads of the Supply Arms and Services and the Directors of Purchases, Production, and Contract Distribution of the Office of Production Management to discuss the general policies and procedures to be followed in expediting the enlarged and accelerated program.
The Secretary of War and the Secretary of the Navy, and the Director General said they will confer with their respective staffs on the proposals made by the Under Secretary of War and the Director General.
2.	Extension of Seven-Day Work Week to Defense Construction
The Director General reported that because of the war emergency it is the policy of the Office of Production Management, as confirmed by the President, to urge the adoption of a seven-day work week as a means of obtaining the maximum use of existing pro
ductive facilities. The seven-day work-week is to be applied to plants and not to workers. The Director General requested that the War and Navy Departments extend this policy to construction work on defense projects and undertook to notify the Defense Plant Corporation that the Office of Production Management recommends adoption of a seven-day work-week in the construction of facilities being built or financed by the Defense Plant Corporation.
3.	New Facilities for 20-mm Hispano-Suiza Gun Production
In considering new facilities for the manufacture of the 20-mm Hispano-Suiza gun, it was pointed out that these guns are intended for use in aircraft only and require no field stands. The schedules recently prepared by the Bureau of Research and Statistics of the Office of Production Management inadvertently omitted 20-mm ammunition but provision for this ammunition has been made in part in the Third Supplemental National Defense Appropriation,47 and in part in the estimates of the new Victory Program.
4.	"Defense Record"
For the information of the Council, the Director General stated that the President had authorized addition of the name of Mr. Harold D. Smith, Director, Bureau of the Budget, to the list of persons to receive the "Defense Record’’, bringing the list of authorized recipients to fifteen.
5.	Section 9 of the Selective Service Training Act
Reference was made to the memorandum sent to the Under Secretary of the Navy by Mr. C. W. Fisher of the Office of the Secretary of the Navy, dated December 12, concerning Section 9 of the Selective Service Training Act (Doc. 67).48 It was agreed without objection that:
The memorandum sent to the Under Secretary of the Navy by Mr. C. W. Fisher of the Office of the Secretary of the Navy and dated December 12, 1941, is to be referred to the General Counsel for study and report to the Council.
6.	New Sources for the Production of Gears and Turbines
The Under Secretary of the Navy was informed by the Director General that the problem of developing new sources of gears and turbines (Minutes 10-28-41, paragraph 3) had been referred to the Director of Production of the Office of Production Management for investigation and report.
« Public Law 353, 77th Cong., 1st Sess., December 17, 1941.
« Memorandum, C. W. Fisher to J. V. Forrestal, December 12, 1941.
The authority to place orders for products or material with firms and to make compliance with such orders obligatory, given to the President by Public Law 783, 76th Cong., 3d Sess., September 16, 1940, has been delegated to the Office of Production Management. Forrestal should telephone Knudsen to tell him that the Navy is also exercising this authority, since it is assumed that the Office of Production Management will not object.
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7.	Aircraft Carriers
The Under Secretary of the Navy reported that Rear Admiral S. M. Robinson, Chief of the Bureau of Ships, is of the opinion that it would not expedite the construction of new aircraft carriers to build two 10,000-ton carriers instead of one 27,000-ton carrier. The Under Secretary of the Navy requested the Director General to try to find additional plants and ingenious managements to expedite the construction of additional gears for aircraft carriers bearing in mind that these vessels must be speedy and must have ample deck surfaces and elevator capacity.
8.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the week ending December 6, 1941 (Doc. 64i) and a report on legislative developments of interest to the Office of Production Management for the week ending December 13, 1941 (Doc. 64j ).
9.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending Decem
ber 6, 1941 (Doc. 4aL), and a report of the Priorities Division for the week ending December 13, 1941 (Doc. 4am).
10.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending December 13, 1941 (Doc. law) and a report of the personnel changes as publicly announced for the week ending December 13, 1941 (Doc. lax).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General,
Robert P. Patterson
Under Secretary of War
Forrestal
Secretary of the Navy
Herbert Emmerich
Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Friday, December 19, 1941
The following members of the Council were present:
The Director General; the Associate Director General; the Under Secretary of War, Mr. Robert P. Patterson; and the Under Secretary of the Navy, Mr. James V. Forrestal.
Also present were: The Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	Contract Clearances
The General Counsel submitted a draft of a memorandum on the relationship regarding procurement between the Office of Production Management and the War Department (Doc. 7b). This memorandum, he said, was prepared pursuant to the discussion on contract clearances at the meeting of the Council on December 15, 1941, and has been approved by the Division of Purchases of the Office of Production Management and by representatives of the War Department. The memorandum provides among other things: (1) that proposals in the amount of $1,000,-000 or more for purchases or construction, or for additions or supplements are to be submitted for
clearance to the Director of Purchases; (2) the War Department agrees not to evade the purpose of this arrangement by splitting into an original contract and a supplement, a proposal for an award which, if consolidated, would have required clearance with the Director of Purchases; (3) no direct orders to arsenals operated by the War Department are to be submitted for clearance; and (4) the Office of Production Management may station representatives in the offices of the Supply Arms and Services in Washington, at Wright Field, and at the District Procurement Offices of the War Department, and such representatives shall be entitled to be fully informed in advance of the procurement plans of the War Department, both in respect to proposals which must be submitted for clearance and other proposals. It was agreed that:
The draft of a memorandum on the relationship regarding procurement between the Office of Production Management and the War Department, as submitted by the General Counsel, is approved.
2.	Adjustment of Labor and Material Costs in Procurement Contracts of the War Department (Escalator Clause)
It was reported that many contractors have complained about the inequity and complexity of the pro
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DECEMBER 15 AND 19, 1941
visions in procurement contracts of the War Department for adjusting direct labor and direct material costs (Doc. 14a).49 It was agreed that:
The General Counsel, in consultation with the Divisions of Labor, Purchases, and Production, is to review the present provisions in procurement contracts of the War Department for adjusting direct labor and direct material costs with the view of submitting to the Council suggested revisions designed to simplify the provisions and to expedite procurement.
3.	War Munitions Program
The Director General reported that the President disapproves the use of the term “Victory Program” in describing the enlarged armament program. It was agreed that :
The newly enlarged armament program is to be known as the War Munitions Program.
The Director General stressed the vital importance of determining at the earliest possible date the schedule of requirements for the War Munitions Program.
4.	War Department Plants
In reply to a question, the Under Secretary of War stated that the Office of the Chief of Engineers has taken over the construction work of the War Department which was formerly administered by the Office of the Quartermaster General. He reported that efforts are being made to avoid cost plus fixed fee contracts wherever possible. Use is being made of the Architect-Engineer-Management construction type of contract wherein the Architect-Engineer-Manager will sublet, on a lump sum contract basis, all work which lends itself to this form of treatment, such as roads, heating, plumbing, electrical, and typical buildings such as warehouses. In addition to preparing plans and specifications and supervising the work of subcontractors, the Architect-Engineer-Manager may do that work which does not lend itself to subcontracting, such as the construction of temporary facilities common to all subcontracts—preliminary roads to construction sites, preliminary water supply, etc. The Architect-Engineer-Manager may also be engaged to operate the plant when he is particularly qualified to do so. The Director General urged that wherever possible those who are to operate the plants also supervise construction in order to assure the most practical production unit.
5.	Civilian Gas Masks
The Director General reported that Mr. Douglas C. MacKeachie, Director, Division of Purchases, has informed him that the Office of Civilian Defense is asking the Bureau of the Budget for sufficient funds to produce 50 million gas masks for civilian use. There are now five plants producing Army gas masks which can be used to produce masks for civilians, but
48 The Document is a copy of a procurement contract.
in order to turn out 5 million masks per month, 15 additional assembly plants will be needed and several plants to manufacture activated charcoal will have to be constructed. In the production of masks and the construction of new facilities, many scarce materials will be required. It was agreed that :
If Congress authorizes and appropriates funds for a civilian gas mask program, it is the policy of the Office of Production Management in the production of such gas masks to use existing facilities to the greatest extent practicable rather than to construct new facilities, and to refer priority ratings for the materials needed in the production of such masks to the Army and Navy Munitions Board.
6.	Overtime Work on Sundays and Holidays
The Under Secretary of the Navy stressed the importance of implementing the policy of continuous work by avoiding stoppages on Sundays and holidays. He believes that an announcement by the Government that time and one-half would be paid for such overtime, would effectively resolve disputes about overtime rates, and that in the absence of such a statement of policy by the Government certain factories are not working on Sundays and holidays. The Associate Director General said that he believes that the question of overtime rates for shift work and for Saturday and Sunday work could be solved by requesting employes to work, pending the negotiation of agreement on this question. If it should prove necessary, the matter could be put to arbitration for a retroactive decision. He believes that this problem may properly be considered by the Industry-Labor Conference now in session. At the request of the Council, he telephoned Mr. William H. Davis, Moderator of this Conference, and asked that this problem be considered by it.
7.	Administrative Order No. 37
The Executive Secretary inserted in the record Administrative Order No. 37 which provides that effective December 18, 1941, the Industrial Branches now reporting to the Division of Civilian Supply and the Division of Purchases will report directly to the Director General and Associate Director General (Doc. lay). This order was signed on December 18, 1941, by the Director General, and the Associate Director General, and approved by the Under Secretary of War, and the Under Secretary of the Navy.
Minutes Approved:
Wm. S. Knudsen
Director General Sidney Hillman •
Associate Director General Robert P. Patterson
Under Secretary of War Forrestal
Secretary of the Navy Herbert Emmerich
Executive Secretary
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OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:00 p.m., Wednesday, January 7, 1942
The following members of the Council were present: .
The Director General ; the Associate Director General ; the Secretary of the Navy ; and the Under Secretary of War, Mr. Robert P. Patterson.
Also present were: The Under Secretary of the Navy, Mr. James V. Forrestal ; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr. Adlai Stevenson ; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
The following were also present : Mr. W. H. Harrison, Director, Division of Production; and Mr. Douglas C. MacKeachie, Director, Division of Purchases.
1.	Subcommittee of the Joint Management-Labor Automobile Committee
The Associate Director General stated that the Joint Management-Labor Automobile Committee had been in session, and it was proposed to establish a subcommittee to assist, subject to the determination of the Office of Production Management, in the development of the best methods for the utilization of labor, tools, machinery facilities, etc., for the most expeditious conversion of the automobile industry for the production of war materials. He believed it advisable that the Office of Production Management give sanction to this arrangement, and accordingly it was agreed that the following statement is approved :
The Office of Production Management today announced the establishment of a subcommittee of the Management-Labor Automobile Committee. This subcommittee is to be composed equally of representatives of labor and management, under the chairmanship of a representative of the Office of Production Management.
The functions of this subcommittee shall be, subject to the determination of the Office of Production Management, to assist in the development of the best methods for the utilization of labor, tools, machinery facilities, etc., for the most expeditious conversion of the’ automobile industry for the pro-4pction of war materials.
2.	Plant Site Clearance
The Director General reported that approximately 55 new plants are being proposed in connection with the War Munitions Program and stressed the importance of coordination among the various supply arms and services in the selection of plant sites. Care
should be exercised in determining the location of new plants in order to avoid establishing them in communities where there is a shortage of labor instead of those having idle workers. Whenever possible, unoccupied buildings which can be converted should be used. He plans to confer with representatives of the War and Navy Departments ; the Director of Purchases; and the Director of Production, Office of Production Management, regarding a procedure for determining the location of plants before negotiations for construction work have reached the contract stage.
3.	Proposed Procurement Procedure for War Materials
Mr. Harrison recommended that the following procedure be followed in the procurement of war materials :
(1)	The Office of Production Management is to be notified of the requirements for war materials at the same time that the procurement offices of the armed services are directed to procure.
(2)	The procurement offices of the armed services are to confer with the Office of Production Management and joint agreement is to be reached with respect to specific procurement plans before initial procurement steps are taken. It is contemplated that such plans would provide that in the case of certain specific items initial placement steps are to be taken by the procurement offices of the armed services and for other specific items that such steps would be delegated to the Office of Production Management.
(3)	The initial procurement steps for the items assigned to the Office of Production Management, such as the determination of sources of supply, would be effected through the appropriate Industry Branches and upon the completion of such steps the proposals would be referred to the procurement offices of the armed services for the negotiation of contracts.
Mr. Harrison said that this procedure would avoid unnecessary duplication of efforts to find new sources of supply. It was agreed that :
The procurement procedure setting forth certain initial steps to be followed prior to the awarding of contracts by the procurement offices of the armed services, as presented by Mr. W. H. Harrison, Director, Division of Production, Office of Production Management, is approved in principle.
The Under Secretary of War and the Under Secretary of the Navy agreed to draft directives requiring the procurement offices of the armed services to follow the procurement procedure adopted by the
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Council and to review these directives with the Office of Production Management.
4.	Supply Requirements for the Office of the Quartermaster General
Mr. MacKeachie discussed a memorandum on the necessity of determining the anticipated supply requirements of the Office of the Quartermaster General (Doc. 69). He pointed out that in order to prepare properly, equipment for armed forces larger than the 3,600,000 men already approved, it will be necessary to have:
(1)	Prompt information on the number of men that the War Department expects to have in armed service by the end of 1943, or
(2)	Authorization of additional appropriation for the Office of the Quartermaster General in order that general reserves of equipment may be purchased beyond those required for an army of 3,600,000 men.
The provision of equipment, including maintenance and replacements, for the present approved complement of 3,600,000 men will utilize quite fully the present available supplies of a number of raw materials, and if the size of the army is increased further, additional curtailment of civilian supply will be necessary. To avoid complete dislocation of civilian needs or the construction of additional plant facilities, production capacity must be fully utilized now to build necessary stocks for any increases in the Army and the growing needs of the United Nations.
The Under Secretary of War reported that present plans call for an army of 3,600,000 men by the end of 1942 with about one-third in training, one-third trained, and one-third in the Air Corps. He has no official information as to the size of the Army contemplated for 1943, but he will consult the General Staff, and advise the Office of Production Management.
5.	Purchase of Requisitioned Property by the Defense Supplies Corporation
The Director General submitted a draft of a letter to Mr. Jesse H. Jones, Chairman, Board of Directors, Defense Supplies Corporation (Doc. 70), stating that the Office of Production Management has located large quantities of materials which can be used for war purposes, and asking whether the Corporation is ready and willing to take over and pay for semifabricated or partially processed materials which will be requisitioned from time to time by the Office of Production Management. It is reasonably certain that it will be necessary to convert the partially processed materials and dispose of them at prices frequently below those paid by the Defense Supplies Corporation at the time of requisition. It was agreed that:
The Director General is authorized to transmit the letter relating to the purchase by the Defense
Supplies Corporation of property requisitioned by the Office of Production Management to Mr. Jesse H. Jones, Chairman, Board of Directors, Defense Supplies Corporation.
6.	Employment of Aliens
It was reported that many war contractors are inquiring whether any law prohibits their employing aliens. It was stated that there is no law prohibiting employment of aliens by private industry in general war work. In fact, many nationals of the United Nations, currently employed in war work, are technically aliens and there are many able and loyal workers who were born in Axis countries whose talents should not be lost in the war effort. Companies working on secret contracts must obtain specific approval from the War and Navy Departments for the hiring of each employe. It was agreed that:
The Director General and the Associate Director General will publicly announce that there is no legal barrier to the employment of aliens in general war work and that plants producing secret items may employ aliens after obtaining specific permission from the War and/or Navy Departments.
7.	Procurement Schedules for Industries
The question arose as to the possible use of procurement schedules of the type presented at the conference with the Joint Management-Labor Automobile Committee for other industry conferences that may be called to consider conversion of facilities to war production. Mr. Harrison requested assistance in the preparation of suitable procurement schedules and stressed the importance of designating items still unallocated to producers, both on contracts which have been negotiated and those which are in process of negotiation.
8.	Miscellaneous Production Items
(1)	The Director General stated that in order to maintain continuity in production, changes in design should be held to a minimum and that when changes are required, production lines should not be shut off until the new design is approved and can be placed in production.
(2)	It was reported that the President has asked that the Secretary of the Navy analyze shipbuilding plans in order that the amount of aluminum used by the Navy may be substantially decreased at an early date.
(3)	It was reported that armor plate is being successfully produced in open hearth furnaces and production need no longer be confined to electric furnaces.
(4)	The Director General exhibited samples of shell casings which had been produced by the experimental method of plating a steel base with a 1/1000 of an inch copper coating. It has been estimated that
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when this process is finally approved and production methods perfected it will result in a very substantial saving of copper as compared with the existing methods of shell production.
(5)	The Director General reported that as a result of the acceleration of the aircraft program, three or four additional plants will be needed for the manufacture of Navy fighter and torpedo planes.
9.	Tax Certification
It was reported that with the approach of the date for filing 1941 tax returns, manufacturers are becoming increasingly concerned with the failure of the Government to issue certificates of non-reimburse-ment and that their non-issuance is retarding the expansion of plants.
The Special Committee appointed by the Director General, at the request of the President, to consider tax amortization under Public Law 285, (Minutes 11-25—41, item 11), composed of Messrs. Nelson, Henderson, and Odium, has a staff working on this problem. Regulations covering the issuance of nonreimbursement certificates were submitted to this Committee by the War and Navy Departments on November 3, 1941, but have not been approved. The General Counsel is to investigate this matter, and report at the next meeting of the Council.
Suggestions were also made as to the possibility of having the President either rescind his letter establishing the Special Committee on Tax Amortization, or of securing the enactment of legislation now pending before the Ways and Means Committee, House of Representatives, which would eliminate the nonreimbursement provision of the existing tax law.
10.	Scrap Collection Campaign
The Director General reported that plans are being made for a nation-wide scrap campaign. Such a campaign is now in process in one or two places on an experimental basis and will subsequently be extended. Collection of scrap in industry and on farms is receiving precedence since these sources are considered to be more fruitful than a house to house canvas.
11.	Relationship of the Office of Production Management to the Defense Program
The Executive Secretary placed on file a copy of a report on the relationship of the Office of Production
Management to the Defense Program which the Director General had submitted to the President through the Director, Bureau of the Budget (Doc. ibb).
12.	Supplementary Limitation Order No. M-15-c
The Executive Secretary placed on file a copy of Supplementary Limitation Order No. M-15-c under which certain priority powers of the Office of Production Management concerning the retail distribution of new rubber tires were delegated to the Office of Price Administration, (Doc. 68).
13.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the week ending December 20, 1941 (Doc. 64k).
14.	Priorities Division Reports
The Executive Secretary placed on file reports of the Priorities Division for the weeks ending December 20, 1941 (Doc. 4an) ; December 27, 1941 (Doc. 4ao) ; and January 3, 1942 (Doc. 4ap).
15.	Activities and Personnel Changes of the Office of Production Management
The Executive Secretary placed on file a report of the activities of the Office of Production Management as publicly announced for the week ending January 5, 1942 (Doc. laz), and a report of the personnel changes as publicly announced for the week ending January 5, 1942 (Doc. Iba).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War
Forrestal
Under Secretary of the Navy
Herbert Emmerich
Executive Secretary
OFFICE OF PRODUCTION MANAGEMENT
Minutes of the Meeting of the Council Held in Mr. Knudsen's Office at the Social Security Building, 2:30 p.m., Wednesday, January 14, 1942
The following members of the Council were present:
The Director General; the Associate Director General; the Secretary of the Navy; and the Under Secretary of War, Mr. Robert P. Patterson.
Also present were: Mr. Donald M. Nelson, who the President has announced will be the Chairman of the War Production Board ; the Special Assistant to the Secretary of War, Mr. Julius H. Amberg; the Special Assistant to the Secretary of the Navy, Mr.
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Adlai Stevenson ; the Special Assistant to the Under Secretary of the Navy, Mr. Charles F. Detmar; the General Counsel, Mr. John Lord O’Brian; and the Executive Secretary, Mr. Herbert Emmerich.
1.	War Production Board
Mr. Nelson referred to the announcement by the President on January 13 proposing to designate him Chairman of the new War Production Board. Mr. Nelson stated that his sole objective is to have enough war material produced to defeat the country’s enemies in the shortest possible time. He said that necessary organizational changes will be made so that the existing war organizations will evolve into the most effective instruments for gaining this end and said that he hoped everyone connected with these organizations would carry on with the utmost devotion and energy.
2.	Airplane'Program
The Director General discussed the new airplane program which calls for the production during 1942 of 45,000 tactical planes and 15,000 trainer planes. Production of gear boxes required to meet the new schedule of 500 Aircobras per month, production of sufficient sheet aluminum, and production of R-1820 and R-1830 engines, are the most difficult problems to be met. Otherwise, he believes that the airplane program is well under way and the new goals can be achieved.
3.	Aluminum Situation
The Director General referred to the vital need of eliminating aluminum from uses other than aircraft and submitted the following estimates, based on the Army Victory Program and the Two-Ocean Navy Program, of the requirements for aluminum for purposes other than aircraft :
Month	(In millions of pounds)		
	Army	Navy	Combined
1941 December 		9.6	10.7	20.3
1942 January 		16.4	13.4	29.8
June 		30.6	13.4	44.0
December 		50.0	13.4	63.4
			
He also submitted the following estimates of the relationship between the total supply of aluminum, including secondary production, and military demands based on the President’s enlarged aircraft program, the Army Victory Program and the Two-Ocean Navy Program :
(In millions of pounds)
Month	Total supply	War requirements		
		T otal aircraft	Army and Navy	Other war needs
1942				
January	85	103	51	30	22
February	86	112	57	31	24
March ..	95	122	62	36	24
June ...	118	147	81	44	22
December	164	215	124	63	28
The Secretary of the Navy reported that efforts are being made by the Navy to eliminate the use of aluminum but that in the case of ships under construction considerable difficulty is experienced in substituting other metals for aluminum.
4.	General Production Items
The Director General reported that the propeller situation is improving. Propellers will be made by the Curtiss-Wright Corporation, Hamilton Standard Propeller Corporation, General Motors Corporation, and Nash-Keivinator Corporation. The Under Secretary of War stated that the Army is tending to favor the use of the General Motors twin Diesel engine for tanks in place of aircraft engines.
5.	Schedule of Aircraft Production in England
The Director General referred to a memorandum dated January 13, 1942, received from Mr. T. P. Wright, Assistant Chief, Aircraft Branch, Division of Production, requesting that the Aircraft Branch be furnished with a copy of the schedule of aircraft production in England. Mr. Wright pointed out that this information would be useful in checking the suitability of deliveries of engines and propellers being sent to England. He has discussed this matter with Sir Henry Self, Director General, British Air Commission, and was informed that the British Government is now furnishing such a schedule to the Secretary of War and that it would be preferable for the Aircraft Branch to obtain a copy from the War Department. The Under Secretary of War stated that he would refer this matter to the Assistant Secretary of War, Mr. Robert A. Lovett.
6.	Anfi-Trusf Suits Involving Contractors Engaged in Defense Work
The Under Secretary of War reported that various war contractors, such as the Bendix Aviation Corporation, are being required to spend considerable time in replying to anti-trust suits filed by the Department of Justice. He believes that such suits are unnecessary at the present time and that by consuming the time of skilled production men they are impeding
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war output. The Secretary of the Navy stated that in cooperation with the Secretary of War he will ask that this matter be considered at the next meeting of the Cabinet.
7.	Proposed Statement of War Policy with Regard to Labor Standards
The Associate Director General referred to a letter dated January 10, 1942, addressed to the Director General by the Secretary of Labor, regarding a meeting of the labor commissioners of various states with representatives of the War and Navy Departments, and the Office of Production Management, on January 5, 1942, at which a proposed statement of war policy with reference to labor standards was outlined (Doc. 71).
This statement recognizes that shortages in the available supply of labor during the war require relaxations in the accepted labor standards, but stresses the importance of exerting every effort to shortening the period during which all-out production is dependent upon continuance of these relaxations. State laws and regulations relative to hours of work, working conditions, wage rates, and health and safety measures should be preserved except where modification may be necessary during the war period in order to assure maximum production. There must be no relaxation of standards governing the employment of minors under the age of 16. Vigilance should be exercised in the prevention of any unnecessary abrogation or suspension of labor laws and regulations, and there is no occasion to engage in a blanket suspension of labor standards.
The Associate Director General stated that the representative of the Office of Production Management at this meeting was present only as an observer and that the Office of Production Management is not committed to the policy for which the Secretary of Labor has requested approval. He further suggested that this statement of policy be referred for study to the Labor Supply Branch, Division of Labor, Office of Production Management, and said he would inform the Secretary of Labor of this disposition. It was agreed that :
The proposed statement of war policy with reference to labor standards submitted by the Secretary of Labor is referred to the Labor Policy Committee, Labor Supply Branch, Division of Labor, Office of Production Management, for study and report to the Council.
8.	Social Security Unemployment Compensation
The Associate Director General reported that the Federal Security Administrator and he are recommending the passage of a law which would increase
the unemployment allowance received by workers out of work as a result of the conversion of industry to war production. This proposed law would be effective only during 1942 and would provide unemployment allowances for a six months’ period in an amount equal to 60% of the workers’ weekly earnings with a maximum of $24.00 per week. The objective of this proposed law is to prevent unnecessary dispersion of labor and to retain workmen in their home communities until war orders can be placed and work provided.
9.	Industry Advisory Committees
The General Counsel submitted Regulation No. 12 (Doc. 22h), amending Regulations No. 7 and 7-A, relating to Industry Advisory Committees. He pointed out that the amendment simplifies the procedure for the formation of Industry Advisory Committees and should thereby expedite their organization. It was agreed that:
Regulation No. 12 relating to Industry Advisory Committees is hereby approved.
10.	Subcommittee of the Management-Labor Automobile Committee
The Executive Secretary placed on file a statement of the personnel of the subcommittee of the Management-Labor Automobile Committee as publicly announced by the Office of Production Management (Doc. 72).
11.	Legislative Report
The General Counsel placed on file a report on legislative developments of interest to the Office of Production Management for the period from December 22, 1941 to January 10, 1942 (Doc. 64L).
12.	Priorities Division Report
The Executive Secretary placed on file a report of the Priorities Division for the week ending January 10, 1942 (Doc. 4aq).
Minutes Approved:
Wm. S. Knudsen
Director General
Sidney Hillman
Associate Director General
Robert P. Patterson
Under Secretary of War Forrestal
Under Secretary of the Navy
Herbert Emmerich
Executive Secretary
88
APPENDIX
EXECUTIVE ORDER 8629
ESTABLISHING THE OFFICE OF PRODUCTION MANAGEMENT IN THE EXECUTIVE OFFICE OF THE PRESIDENT AND DEFINING ITS FUNCTIONS AND DUTIES
By virtue of the authority vested in me by the Constitution and the statutes, and in order to define further the functions and duties of the Office for Emergency Management with respect to the national emergency as declared by the President to exist on September 8, 1939, and to increase production for the national defense through mobilization of material resources and the industrial facilities of the Nation, it is hereby ordered:
1.	There shall be in the Office for Emergency Management of the Executive Office of the President, an Office of Production Management which shall consist of (1) a Director General, and (2) an Associate Director General, each to be appointed by the President, (3) the Secretary of War, and (4) the Secretary of the Navy. The members shall serve as such without compensation but shall be entitled to actual and necessary transportation, subsistence, and other expenses incidental to the performance of their duties.
2.	With such advice and assistance as it may require from other departments and agencies of the Federal Government, and subject to such regulations or directions as the President may from time to time prescribe, and subject further to the general policy that the Departments of War and Navy and other departments and agencies of the Government will be utilized to the maximum extent compatible with efficiency, the Office of Production Management shall:
a.	Formulate and execute in the public interest all measures needful and appropriate in order (1) to increase, accelerate, and regulate the production and supply of materials, articles and equipment and the provision of emergency plant facilities and services required for the national defense, and (2) to insure effective coordination of those activities of the several departments, corporations, and other agencies of the Government which are directly concerned therewith.
b.	Survey, analyze, and summarize for purposes of coordination the stated requirements of the War and Navy and other departments and agencies of the Government, and of foreign governments for materials, articles, and equipment needed for defense.
c.	Advise with respect to the plans and schedules of the various departments and agencies for the purchase of materials, articles, and equipment required for defense, to coordinate the placement of major defense, orders and contracts and to keep informed of the progress of the various programs of production and supply.
d.	Plan and take all lawful steps necessary to assure the provision of an adequate supply of raw materials essential to the production of finished products needed for defense.
e.	Formulate plans for the mobilization for defense of the production facilities of the Nation, and to take all lawful action necessary to carry out such plans.
f.	Determine the adequacy of existing production facilities and to assure their maximum use ; and, when necessary, to stimulate and plan the creation of such additional facilities and sources of production and supply as may be essential to increase and expedite defense production.
g.	Determine when, to what extent, and in what manner priorities shall be accorded to deliveries of material as provided in Section 2(a) of the Act entitled “An Act to Expedite National Defense and for other Purposes”, approved June 28, 1940. Deliveries of material shall take priority, as provided in said Act, in accordance with such determinations and the orders issued in pursuance thereof by the Office of Production Management.
h.	Perform the functions and exercise the authorities vested in the President by Section 9 of the Selective Training and Service Act of 1940.
i.	Serve as the liaison and channel of communication between the Advisory Commission to the Council of National Defense and the Departments of War and Navy with respect to the duties imposed upon the Commission by the following named acts, and with respect to all other matters pertaining to defense purchasing and production: Public Nos. 667, 781, 800 and 801 and Public Resolution No. 95, 76th Congress.
j.	Perform such other functions as the President may from time to time assign or delegate to it.
3.	The Director General, in association with the Associate Director General, and serving under the direction and supervision of the President, shall discharge and perform the administrative responsibilities and duties required to carry out the functions specified in paragraph 2, subject to and in conformity with the policies and regulations (not inconsistent with such regulations as may be issued by the President) prescribed by the Office of Production Management.
4.	There shall be within the Office of Production Management the following and such other operating
89
divisions as the President may from time to time determine :
a.	A Division of Production
b.	A Division of Purchases
c.	A Division of Priorities
Each division of the Office of Production Management shall be in charge of a director appointed by the Office of Production Management with the approval of the President.
5.	There shall be within the Office of Production Management a Priorities Board composed of six members. A chairman and three other members shall be appointed or designated by the President; the Director General and Associate Director General shall be members, ex officio. The Priorities Board shall serve as an advisory body and, from time to time as may be required by the Office of Production Management, shall make findings and submit recommendations with respect to the establishment of priorities, the placing of mandatory orders, the assignment of preference ratings, the allocation of deliveries, and other related matters. In making its findings and
recommendations, the Priorities Board shall take into account general social and economic considerations and the effect the proposed actions would have upon the civilian population.
6.	Within the limits of such funds as may be allocated to it by the President on the recommendation of the Bureau of the Budget, the Office of Production Management may employ necessary personnel and make provision for the necessary supplies, facilities, and services. However, the Office of Production Management shall use insofar as practicable such statistical, informational, fiscal, personnel, and other general business services and facilities as may be made available through the Office for Emergency Management or other agencies of the Government.
7.	Executive Order No. 8572 of October 21, 1940, as amended by Executive Order No. 8612 of December 15, 1940, is revoked.
Franklin D. Roosevelt
The White House,
January 7,1941.
90
INDEX TO MINUTES OF MEETINGS
Subject	A	Page
Administrative Order No. 37, Industrial Branches to report to the Director General and Associate Director General .......................................... 83
Administrative Services, organization charts approved ...............................................  1
Advisory Commission to the Council of National
Defense :
Additional personnel............................... 7
Amendment to Revenue Act of 1940 ................. 33
Elimination as clearance agency for tax certification ...................................... 29,40
Functions........................................... 25
Modification of statement of policy................. 11
Non-reimbursement certificates, backlog.............	57.
Tax certification functions............................ 53	'
Tax certification policy statement ................... 28
Tax certification responsibilities.................... 57
Aircraft :
Aluminum requirements ................................ 87
Assembly plants, procedure on construction..........	2
Assembly plants, progress in Ft. Worth and
Tulsa..................................................   44
Bombsight equipment................................... 77
Construction, substitution of wood and other materials ...................................... 38
Contracts, labor price adjustment clause.......	6
Duplication of stock rooms and inventories in some plants ......................................... 44
Freezing of design of bombers by Army and Navy 47
Investigation......................................... 21
Labor agreement, West Coast........................... 46
Plant location......................................   73
Production :
Public release of monthly figures discontinued 69
Release of information................................. 63
Requirements for aluminum.............................. 38
Schedule in Great Britain.............................. 87
Rubber fuel tanks................................... 77, 79
Standardization of Norden bombsight................... 79
Aircraft Artillery.........................j........	74
Aircraft Branch: Establishment..................................... 58
Request for British aircraft production schedules 87
Aircraft Carriers, construction....................... 82
Aircraft, commercial, deliveries in	1942 and 1943 ....	11
Aircraft Engines :
Ford Motor Company.................................... 77
Sabre type..........................................   19
Use of General Motors twin diesel engines for tanks instead of aircraft....................... 87
Aircraft Propellers, production....................... 87
Aircraft Stabilization Agreement:
Adoption proposed...................................32,42
Negotiations ........................................  44
Problems ............................................. 39
West Coast............................................ 46
Aircraft Stabilization Committee, establishment ..... 35,38
Aircraft, tactical, production........................ 87
Aircraft, torpedo, step up in production.............. 74
Aircraft, trainer, production......................... 87
Aircraft, transport:
Immediate placement of orders to expedite delivery 44
Requirements, Great Britain......................... 18, 22
Aliens, employment of................................. 85
Allis-Chalmers Manufacturing Co., strike..............	11
Almy, E. D., Captain, appointment to Machine Tool
Committee............................................... 26
Altmeyer, Arthur J., proposal for direct use of employment service funds..............................  31
Aluminum :
Aircraft production requirements...................... 38
“Bootlegging” ......................................   63
Canadian production .................................. 34
Negotiations for new plants..............,...........  38
New plants...........................................  39
Priorities for electric power ........................ 25
Subject	Page
Production.........................................   41
Production program.............................. 33
Reduction in non-aircraft items................. 45
Requirements estimate.............................. 41
Requirements for military uses other than aircraft	69,87
Sources of supply.................................. 33
Testimony of W. L. Batt to Truman	Committee	..	21
Aluminum and Magnesium Branch, establishment	....	59
Aluminum Company of America:
Construction of new plants...................... 41
Contracts ........................................... 39
Aluminum Destroyers ................................. 79
Aluminum Forgings, shortage of dies.................. 74
Aluminum Scrap, increasing uses ....................  38
Aluminum Sheet, production........................... 87
Amberg, Julius H.:
Appointment to committee to study National Labor Relations Act............................. 6
TNT production report................................ 61
American Can Company, construction and operation of a torpedo plant ..;.................................. 29
American Federation of Labor:
Agreement with government agencies engaged in defense construction..........................  54
Appointment of committee to secure labor support of Defense Program............................. 37
Compliance with Shipbuilding Stabilization Agreement .......................................... 24
Policy........................................... 6
Ammonia plants, necessary equipment.................. 61
Ammunition:
Army program, 1942 ................................   41
50 calibre cartridges................................ 38
Small arms facilities, necessity for construction ..	18
Small arms production capacity....................... 26
Small concerns to have an opportunity to bid on contracts....................................   75
Anti-Trust Actions:
Sperry Corporation and Bendix Aviation Corporation .......................................  34
War output impeded............................   87
Anti-Trust Laws, policy.............................. 15
Appropriations:
Bureau of Employment Security.......................  31
Expediting funds....................................	4
Expediting funds for contracts....................... 21
Navy Department..................................  17,75
Navy Department funds available for immediate contract obligation............................ 73
Ordnance items .............................     53
Third supplemental National Defense.................. 70
War Department .................................... 37,41
War Department, pending and contemplated ....	23
Architect-Engineer-Management Contract ...........	83
Armor Piercing Shot...............................    41
Armor Plate, production............................   67
Armored Cars, data on types under study ............. 73
Army and Navy Munitions Board:
Materials requirements, advance estimates .......	45
Materials requirements estimates................ 59
Representation in Priorities Clearance Section of the Priorities Division   ....................  49
Transfer of certain functions to Priorities Division ........................................... 3
Transfer of certain functions to Priorities Division withdrawn .....................   i........	6
Arnold, Thurman W., patent legislation..............   9
Arsenals:
Navy construction policy.............................  7
Production which might be referred to subcontractors ......,.............................   78
Artillery (see Guns)
Associate Director General, Pacific Coast trip.....	68
Attorney General (see also Justice Department) :
Arrangements to implement operations of industry committees ...................................  19
91
Subject	Page
Attorney General (Cont.) :
Consideration of establishment of Board of Review......................................    31
Automobile Committee, Joint Management-Labor ....	84
Automobile production :
Additionaireductions.................................  34
Allotment program....................................  19
No curtailment first half of 1941.........«*........... 2
Report of W. S. Knudsen............................... 17
Automotive, Transportation, and Farm Equipment Branch, establishment .............................. 59
Awards, special, for distinguished contributions to defense production and design  ......................  56
Axis, superiority in field artillery, anti-aircraft guns, tanks, and heavy bombers........................     58
Ayres, Leonard P., General, designation as liaison with
OPM on War Department material estimates............	53
Bane, Frank H. :	.	®
Responsibilities....................................... 2
Transfer from Advisory Commission to OPM ...	4
Batt, William L. :
Appointment as Director of Materials Division .. 55,60
Appointment to Material Coordinating Committee 16 Appointment to Special Committee on Defense
Sub-Contracting ...................................  21
Testimony on aluminum production to Truman Committee ....................................  21
Bendix Aviation Corporation, anti-trust actions against ........................................  34,87
Biggers, John D. :
Appointment as Director of Production Division 2,3
Appointment to Special Committee on Defense
Sub-Contracting ..............'..................... 21
Resignation as Director of Production .............	55
Board of Review:
Establishment considered by Attorney General ... 31,33
Representatives ..................................,. 54,67
Bomber program, possible shortage of aluminum......	38
Bombers :
Additional planes for aircraft program................	17
Freezing of design by Army and Navy................... 47
Recommendations for freezing designs.................. 43
Bombs, incendiary, magnesium requirements........	80
Bombsights :
Norden, standardization i............. ?.............  79
Standardization ...................................    77
Standardization of	design......................  43
Brass, scarcity.................................     38
British (see also Great Britain)
British Industrial Mission, trip to defense areas and plants in U. S...................................    57
British Industry Delegation, visit to the U. S. .... 29
Britton, Mason, appointment to Machine Tool Com-
mittee ................................................  26
Brown, J. Douglas, designation as the representative of
OPM on the Board of Review ... t........................ 54
Budget Bureau :
Plant facilities contracts....................    :	37
Recommendations for use of expediting funds granted in future appropriations acts to be placed in OPM.........................  ;....... 4
Requisitioning Bill ...............................	74
Byrd, Harry F., Senator, criticism of production progress, reply by the President.......................  53
Canada :
Anti-aircraft guns manufacture.......................  31
Material Coordinating Committee ...............	15
Permanent Joint Board on Defense with U. S. ...	5
Canning industry, exemption from Walsh-Healey Act 22
Cantonment location, Truman Committee investigation 21
Carbondale, Illinois, powder plant ................  30
Carmody, John, . request for delay on approval of housing priorities plan ........................     52
Carpenter’s Union, fees.............................  6
92
Subject	Page
Cartridges, 50 calibre, use of steel.................. 38
Central Pattern and Foundry Company :
Priority orders enforcement............................ 62
Suspension of aluminum deliveries ....................	69
Chemical Branch, establishment.......................  59
Chicago area, shipbuilding regional stabilization agreement ..............................................    38
Chrysler Plant, competition between field officers of
Army and Navy for deliveries of finished products..	11
Civilian Allocation Division, Office of Price Administration and Civilian Supply, plans for establishment 14
Civilian Supply Division :
Industrial Branches established  ................ 59
Plans to establish in Office of Price Administration and Civilian Supply......................... 14
Transfer from OPACS to OPM ............................ 55
Coal:
Ickes appointed as Hard Fuels Coordinator...........	42
Special provisions for urgent cases in case of shortage......................................    71
Stock accumulation by industrial users and other consumers  ....................................   33
Commercial Aircraft Priority Committee, aircraft deliveries proposal .................................... 11
Commodity Sections :
Advisory service of Labor Advisory Committees..	37
Allocation among the Directors of Production, Purchase, and Priorities......................... 43
Creation............-..........................   46
Effect of decisions on labor ..................   40
Substitution for General Equipment Priority Committee ........................................   49
Community facilities, jurisdiction  ................... 2
Comstock, Louis K., designation as OPM representative on the Board of Review........................... 67
Confidential material :
Clearance..........................................     59
Precautions in handling......................;......... 22
Congressional Committees :
Clearance of information......................'........ 40
Confidential information requests...................... 59
Conservation Section, study of British specifications for aluminum	.....................     38
Construction :
Bids................................................    53
Coordinated wage and labor policy...................... 29
War Department........................................  83
Construction Branch, establishment.................... 58
Construction Stabilization Agreement :
Approval ............................................   44
Board of Review created ............................ 54,67
No provisions for closed shop in the construction industry .......................................  68
Purpose .............................................   39
Consumer Protection Division, Advisory Commission, proposed merger in new Office of Price Administration and Civilian Supply........................... 12
Consumer Protection Section, Office of Price Administration and Civilian Supply, plans for establishment ...............................................   14
Containers Branch, establishment.....................  58
Continental Motors Corporation, production schedule for engines .......................................    68
Contract Distribution Division (see also Defense Con-
tract Service) :
Appointment of Director......................;......57, 60
Certification of contracts in distressed areas......	72
Creation by Executive Order No. 8891 .................. 57
Contract Distribution Division, War Department, functions .......................................      53
Contractors, affidavits for machine tools............. 62
Contracts (see also Letters of of Intent) :
Aluminum Company of America	................ 39
Application of National Labor Relations Act .... 6,15
Appropriations ........................................ 26
Approval ............................................    7
Subject	Page
Contracts (Cont.) :
Architect-Engineer-Management......................... 83
Authorizations ....................................,.	79
Avoidance of cost-plus-fixed-fee ...................   83
Awards :
Clearance by Director of Purchases..................	78
Progress.............................................  71
Bids, opportunity for small concerns.................. 75
British, priority to be granted........................ 4
Clearance.......................................... 66,80
Clearance by Tools Branch............................  76
Clearance procedure.................................... 3
Closed shop clause...................................  .6
Competitive bidding.................................   72
Escalator clause...................................... 82
Excess of $500,000, plant facilities.................. 37
Increased placement..................................  23
Labor policy....................................*....	15
Labor Price Adjustment clause ......................... 6
National Labor Relations Board decisions...........	4
Navy, approval........................................  7
Placement, War Department ... *....................... 37
Withholding awards to bidders who refuse to abide by War Dept. Procurement Circular No.
43 ....................................................   4
Copper :
Conservation Order M-9-c ............................. 65
Foreign purchase.....................................   2
Production and requirements........................... 33
Copper-Zinc Branch, establishment .................... 59
Cork and Asbestos Branch, establishment...............	59
Critical Materials:
Exemption from customs duties .. ,.................... 18
Requirements estimates................................ 41
Withholding from producers holding Navy contracts ......................................... 67
Currier Mobile Homes, Inc., denial of contract....64,68
Customs duties, exemption by law of certain materials 18
Cuyahoga River, project for deepening................. 66
D
Davis, Chester, resignation as Agricultural Commissioner, Advisory Commission........................... 14
Daylight Saving:
Recommendations for legislation....................30,35
Text of President’s message to Congress............	46
Defense Contract Service (see also Contract Distribu-
tion Division) :
Abolishment .......................................... 57
Arrangements with Army and Navy....................... 52
Duties...........‘................    ....;........... 49
Establishment in Division of Production.............	4
Field offices, use of Industry Advisory Committees 20
Organization........................................... 46
Relations with Army Procurement Offices............	19
Subcontracting program, progress ..............	50
Defense Housing Coordinator, Advisory Commission, responsibilities .........................V.. . .......	2
Defense Housing Coordination Division, Office for
Emergency Management :
Clearance of priorities projects ..... .’.........	52
Wage and labor policy conference ..............	30
Defense Identification Stamp Plan ...............48, 54
Defense Industry Advisory Committees, Bureau of
Clearance (see Industry Advisory Committees, Bureau of)
Defense Labor Advisory Committees :
Advisory service to chiefs of commodity	sections..	37
Authorization...................................... 40
Defense Contract Service Regional Offices..........	20
Defense Orders, acceptance............................ 48
Defense Plant Corporation:
Financing of aluminum facilities.....................  41
Plant facilities contracts............................ 37
Defense plants (see Facilities)
Subject	Page
Defense Program :
American and British, 1942 .............................. 5
Congressional investigation ...........................  40
Public attitude.......................................   36
Defense Progress:
Committee to formulate policy regarding contents	76
List of recipients ..................................... 21
Defense Record, circulation..................... 76,80,81
Defense Supplies Corporation, purchase of requisitioned property ....	85
Deliveries, competition between War and Navy field officers .............................................  11
Destroyers, aluminum................................   79
Detroit, Michigan, unemployment due to priorities ....	58
Distressed Communities, certification of contract awards .............................................    72
Douglas Aircraft Plant, increased production with additional orders ...................................   44
Dow Chemical Company, strike.......................... 34
E
Eaton, Frederick M., appointment as Assistant General Counsel in charge of production.................... 9
Electrical Products and Consumers Durable Goods Branch, establishment ................................. 59
Elliott, Harriet, designation as Chief of proposed Consumer Protection Section, Office of Price Administration and Civilian Supply............................ 14
Emmerich, Herbert:
Appointment as Secretary ................................ 6
Designation as Executive Secretary...................... 57
Enforcement Board for wage stabilization proposed ■..	39
Engines :
Aircraft production..............•...................... 87
Aircraft, use in medium tanks..........................  77
Diesel, for tanks in place of aircraft engines......	87
Liquid-cooled, recommendation by Knudsen for tanks......................................       45
Tanks, use of twin diesel engines or a combination of five Plymouth engines........................  77
Escalator clause...................................    82
Executive Orders :
No. 8875, creation of Supply Priorities and Allocations Board and delegation of priorities powers toOPM...........................................  55
No. 8891, creation of Division of Contract Distribution ....................................    57
No. 8942, administration of the statutory power to requisition property............................. 77
Administration of priorities ..........................  51
Authorizing Army to take over plant of North
American Aviation, Inc. ................................  32
Delegating powers under priorities amendment ..	27
Foreign purchasing through existing agencies ....	5
National Defense Mediation Board......................... 9
Race discrimination ............................	44
Race relations .......................................   38
Requisitioning bill ...................................  74
Vacation policy........................................  40
Expenditures, National Defense ......................  71
17 "1*11	F
Facilities :
Civilian utilization for defense production .......	42
Construction, centralized procedures..................... 2
Contracts approvals procedures........................... 37
Conversion ...........................................	42
Idle, central department for information about ...	2
Progress in decentralization............................ 36
Unused.............................................  .19,39
Visits, duplication of War Department and 0PM 78
Federal Loan Agency, purchase of materials for stockpile ..................................... /........   33
Federal Power Commission, priorities powers.........	28
Federal Reserve System field offices, use by Defense Contract Service ’.................................... 47
Federal Shipbuilding Company, strike.................. 50
93
Subject	Page
Federal Works Administration, housing priorities ....	52
Field Officers, War Department, contract clearance authority .............................................  80
Field Offices (see Contract Distribution Division; Defense Contract Service)
Fir, Douglas, substitution for spruce.45
Fisher, C. W., memorandum concerning Selective
Service and Training Act..............................    81
Food Supply Branch, establishment ..................... 58
Ford Motor Company, liquid-cooled aircraft engine production ........................ '..............    77
Frey, John P., President of Metal Trades Department, A. F. of L., compliance with Shipbuilding Stabilization Agreement .............................. 24
Fuller, S. R., appointment to Plant Site Committee 10
G
Galbraith, J. K., designation as Chief of proposed Price Section, Office of Price Administration and
Civilian Supply ........................................  14
Gas Masks, civilian...................................  83
Gasoline, Aviation, allocation and production ......... 66
Gears, construction for aircraft carriers ............. 82
General Counsel: Appointment.........................................1,	2,3, 6
Clearance of confidential information .................. 59
Clearance of legislation ......................... ...	40
Personnel appointments................................... 9
Recommendations for elimination of Advisory Commission  .....................................  25
Reports on legislative developments of interest for weeks ending:
Oct. 13 ...............................................   67
Oct. 20.................................................. 69
Oct. 27.................................................. 72
Nov. 1 ................................................   73
Nov. 22.................................................. 78
Nov. 29 ...............................................   80
Dec. 6 and Dec.	13 ........................   82
Dec. 20............................................       86
Dec. 22 to Jan. 10, 1942 ..............................   88
Rules and regulations necessary to carry out provisions of Executive Order No. 8942 ........... 77
General Electric Company, conversion of facilities to defense uses ..’.................................      42
General Equipment Priority Committee, discontinuance 49
Germany, production.................................... 58
Ginsburg, C. David, General Counsel for Office of
Price Administration and Civilian Supply...............	14
Goodrich, B. F., Company, report on leak-proof rubber fuel tanks .......................................     77
Government Protection Certificates, amendment to Revenue Act of 1940 ................................   33
Great Britain (see also British) :
Aircraft production schedule ................:.	87
Anti-aircraft guns requisition ................... 17
Machine tools requisition ...............  ......	68
Ford Motor Company, liquid-cooled aircraft engine, information on ........................    77
New Defense Program, effect of Lend Lease Bill 5
Priority needed for ships, guns, tanks, bombers 19
TNT requisition ........................................ 59
Visit by Stacy May....................................   58
Green, William, President of A. F. of L., appointment of committee to secure labor support of Defense Program ..........................................     37
Grumman Aircraft Engineering Corporation, model for torpedo planes  .................................  74
Gun Mounts, 40 MM (Bofors) and 20 MM (Oerlikon), ultimate requirements .................... 30
Guns:
Anti-aircraft, appropriations ........................   53
Anti-aircraft, Army program, 1942 ...................... 42
Anti-aircraft, future requirements ........ ............ 79
Anti-aircraft, 90 MM and 3.7 inch ... i......	17
94
Subject	Page
Anti-aircraft, 90 MM and 3.7 inch, British requirements ..................................    22
Anti-aircraft, production increase for 30 MM and 90 MM .......................................... 26
Anti-aircraft, standard type.......................... 31
40 MM, Army program,	1942 .................... 42
Oerlikon and Bofors, increase in program .....	26
Orders placed ........................................ 70
Production increase..................................  26
Program, summary of requirements ..................... 37
20 MM Hispano Suiza .................74, 79
20 MM Hispano Suiza, new facilities .................. 81
■	20 MM Oerlikon ..............................    79
H
Hamm, John, Deputy Administrator of Office of
Price Administration and Civilian Supply .............. 14
Hard Fuels Coordinator, responsibilities and functions 45
Harrison, W. H. :
Appointment as Director of Production ............. 55,60
Report on progress of the shipbuilding program 51
Hayes, Thomas J., Colonel, appointment to Machine
Tool Committee ...........................  .......	26
Health Supplies and Civilian Defense Equipment
Branch, establishment ..............................    58
Henderson, Leon:
Appointment as Administrator of the Office of
Price Administration and Civilian Supply ....	14
Appointment as Director of Civilian Supply
Division ........................................... 55,60
Hillman, Sidney :
Appointment as Director of Labor Division ....	10
Appointment to Special Committee on Defense Sub-Contracting .................................20
Statement regarding North American Aviation
Company strike.............................*.......	32
Holmes, R. S., Admiral, clearance of confidential information ....................................     60
House Appropriations Committee, hearings on Lend-Lease bill .......................................   61
Housing :
Authorization for a priorities system for publicly financed defense housing	projects.............	54
Construction program..........................  52
Priorities........................................  47,49
Projects, jurisdiction............................. 2
Hudson Motor Car Company, parts being produced which might be referred to	subcontractors........	78
I
Iceland, State Department agreement with, non-lend-lease purchases..................................... 60
Ickes, Harold L.:
Appointment as Coordinator of Hard Fuels ....	42
Designation as Petroleum Coordinator ................. 47
Industrial and Office Machinery Branch, establishment 59
Industrial Branches:
Establishment ........................................ 59
Reporting procedures.................................. 83
Industrial Conservation Bureau:
Establishment......................................... 60
Functions and duties ...............................   61
Industry Advisory Committees :
Conditions for their creation and operation ....	24
Not used by Office of Price Administration and
Civilian Supply .................................... 37
Organization report .................................  61
Regulation No. 12 amending procedures for formation .....................................  88
Use by Defense Contract Service ...................... 20
Industry Advisory Committees, Bureau of :
Establishment of Bureau of Clearance of Defense
Industry Advisory Committees.....................;...	35
Name changed ........................... . . .T .	73
Operations.........................................    35
Report ..........................!...................  61
Subject	Page
Industry Committees:
Attachment to Defense Contract Service Regional
Offices............................................. 20
Operations..................................... 19
Industry-Labor Conference.......................... 83
Inflation, fear of, causing support of	price	control	...	68
International Die Sinkers Conference, Cleveland meeting, results ....................................   74
Interstate Commerce Commission,	priorities	powers	28
Inventories:
Adequacy of six weeks supply of material in non-fabricated form	...................... 78
Control .........................................      16
Duplication in aircraft	plants .................. 44
Materials under mandatory	control ................ 75
Requirements of the Armed Services ................... 79
Iron and Steel Branch, establishment.................... 59
Iron Fireman Manufacturing Company:
Contract bid ......................................    72
Denial of contract ................................... 72
Iron ore, transportation ..............................  62
J
Johnson, E. F., appointment to Plant Site Committee 10
Jones, Jesse, copper purchase request ................... 2
Justice Department {see also Attorney General) :
Anti-Trust suits .............................j 15,34,87
Establishment of Board of Review ..................... 33
North American Aviation, Inc., strike ................ 32
K
Kaiser, S. F., development of new process for magnesium ......................................    44
Katz, Milton, appointment as Assistant General
Counsel in charge of purchases.......................... 9
Knudsen, William S.:
Appointment to Special Committee on Defense Sub-Contracting ..............................  20
Report on trip to aircraft plants ...................  43
Request to President about tungsten.................... 2
Testimony on new Lend-Lease bill ..................... 61
L
Labor (see also Strikes) :
Agreement with management on six-point program 58
Availability for defense work ........................ 19
Availability for shipbuilding .......................  39
Competition for shop foremen .......................... 6
Discrimination against Negroes......................32,34
Disputes, violence to employees .....................  11
Draft .........................................        32
Morale ............................................    67
Overtime work on Sundays and holidays ........	83
Policies, construction industry ...................... 29
Policy, joint statement by OPM, Labor Depart-
ment, and National Defense Mediation Board 69
Relations ............................................  7
Relations, improvement................................ 68
Seven day work week ................................   81
Shortage in defense industries ....................... 26
Unemployment due to priorities in Detroit, Michigan region ...............................  58
Unemployment, relationship to priorities actions 51
Wage scales .........................................  38
Wages, need for a general wage policy ................ 21
Wages, second and third shift.........................  6
Welders on Pacific Coast ............................. 73
West Coast aircraft agreement ........................ 46
West Coast, Knudsen inspection trip ................. .68
West Coast situation.................................. 32
Labor Advisory Committees (see Defense Labor Ad-
visory Committees)
Labor and Management, peace plea ........................ 2
Labor Consultant, status ................................ 2
Labor Department, Wage and Hour Division, services for investigation purposes.........................   48
Subject	Page
Labor Division: Appointment of	Director ......................... 10
Defense industry	morale program ..................... 56
Functions...........................................   10
Study of utilization of civilian facilities for defense production................................ 42
Labor Mediation Board (see National Defense Mediation Board)
Labor Policy Advisory Committee :
Cooperation in preventing strikes requested ....	7
West Coast strikes, resolution regarding ............. 32
Labor Policy Committee, study of proposed statement of war policy with reference to labor standards 88
Labor price adjustment clause, Army aircraft contracts .............................................  6
Labor, Secretary of, proposed statement of war policy regarding labor standards .......................... 88
Labor Supply Branch, establishment .................. 40
Labor Supply Committees, regional, establishment ..	40
LaGuardia, Fiorello, Mayor, campaign for public support of defense program ..........................36,37
Legal Division (see General Counsel)
Lend-Lease Administration : Appropriations ....................................   5
Appropriations proposed.............................   47
British-American defense problems .................... 52
Committee to handle all contacts between foreign
purchasing agencies and U.	S.	Government ....	5
Estimated requirements...............................  16
Funds for TNT plant .................................. 61
Plant facilities contracts ........................... 37
Schedules of requirements............................. 70
Trucks for British and Russian	Governments ..	79
Unplaced orders ...................................... 29
Lend-Lease Bill : Administration of provisions ........................ 4
Hearings ............................................. 61
Revocation of the Byrd amendment...................... 47
Lend-Lease Requisitions, clearance and approval responsibility assumed by OPM......................... 45
Letters of Intent:
Issuance by Ordnance Department, War Department ........................................... 47
Requirements ......................................... 29
Levis, W. E.,	recommendations for subcontracting ..	49
Los Angeles Chamber of Commerce, error in statement ...........................................     72
Lubin, Isador : Appointment to committee to study National
Labor Relations Act ................................. 6
Labor Consultant, designation	as ............... 2
Proposed for chairman of Aircraft Stabilization Committee ...................................... 35
Lumber and Building Materials	Branch, establishment 59
M
Machine Tool Committee: Appointment .......................................... 23,26
Revised preference list ............................... 66
Machine Tools : Affidavits from contractors............................   62
Approval of contracts by Tools Branch...............	76
Available for tank production.......................... 45
Clearance of orders for foreign purchase .............. 50
Delivery to make radar equipment ...................... 75
Delivery to contractors ..............................  66
Excessive requests from contractors.................... 62
Idle .................................................. 20
Idle, central department for information ............... 2
Investigation by Truman	committee ............  21
Manufacture, expansion and speeding up..............	20
Master preference list ..............................   69
OPM authorized to purchase tools now in use on non-defense activities .......................   23
Policy of OPM on release for foreign account 68
Program ............................................... 23
95
Subject.	page
Machine Tools (Cont.) : Requisitioning bill .............................   38
Shortage in defense work ............................. 26
MacKeachie, Douglas C., appointment as Director of
Purchases .......................................... 55,60
Magnesium :
Construction of plant for	Permanente Corporation 44
New plants ..........................................  34
Requirements estimates...............................  41
Requirements for incendiary bombs..................... 80
Mail, censorship .................................... 56
Management-Labor Automobile Committee, subcommittee established ..............................   84
Manganese-Chrome Branch, establishment............... 59
Maritime Commission, priorities powers .............. 28
Marks, Herbert, appointment as Assistant General
Counsel in charge of legal research and matters of legislation .............;........................ 9
Material Coordinating Committee for U. S. and
Canada to be created............................... .	15
Materials Branch, schedule of stockpile items........	33
Materials Division : Creation..........................................  60
Creation and functions proposed .....................  55
Establishment of Industrial Branches ................. 59
May, Stacy, report on trip to England .............;	58
Mehornay, Robert L., supervision of Defense Contract Service.................:........................   47
Metal-working plants, survey .....................    20
Mica-Graphite Branch, establishment ..A.............	59
Minutemen, publicity campaign ......................  37
Miscellaneous Minerals Branch, establishment ........ 59
Morale :
Knudsen trip to aircraft plants .................;..	44
Labor ....................................  ......A.	67
Stimulation in Cleveland, Ohio .....................   58
Stimulation in defense plants and industrial areas 51
Morgenthau, Henry, joint proposal with Director of
Purchases on contracts........................      -	15
Murray, Philip, President of C. I. O., objection to proposed Mediation Board............................ 9
N
Nathan, Robert R., report on raw materials requirements ..........................................    50
National Defense Mediation Board :
List of cases settled ..................A....	25
Progress report ...........A. A’.........	21
Proposed establishment........i..............	...	9
Reports of activities for weeks ending: June 9 .......................................  32
June 16 ... ;.......................................    34
June 23................................................ 36
June 30.............................................    39
July 7................................................	41
July 21 .............................................   46
July 28..................................... .........	48
Aug. 4 ................................................ 50
Aug. 11 ......................... A......;..........À A 51
Aug. 18 A a..........................A................  52
Aug. 25 ...................A a A.. a .. .T... A. a . '	54
Sept. 1 ............................................... 58
Sept. 8 and Sept. 15 .................................  60
Sept. 22. ....................................          62
Sept. 29 ........................A.......... A....	63
Oct. 6 ....................................... .......	65
Oct. 13 ................. ..AA.......A.........A A..'	67
Oct. 20 and Oct. 27 ..................................  72
Nov. 3 ...................................              73
National Defense Pipe Lines Inc., conference with
SPAB on construction ...........................        57
National Labor Relations Act : Application to contracts .......................    11
Problems of policy ..... a .....................   A	.	6
96
Subject	Page
National Labor Relations Board: Decision on contracts .................................... 4
Relationship of decisions	to	contracts ............. 6
Navy Department:
Acceptance of torpedo plane	model .......... 74
Aluminum eliminated from all items of procurement ........................................... 38
Aluminum requirements reduction for uses other than aircraft................................... 69
Aluminum substitution	................... 87
Appropriations.................. ................... 73
Arsenals construction policy......................... 7
Authority to purchase	strategic materials ......... 18
Certificates of Necessity, Government Protection, and Non-Reimbursement .......................... 33
Check on steel plant capacity devoted to defense work .........................................   42
Clearance of confidential	information .............. 60
Competition with Army	on	delivery of goods 11
Conference in the Office of Price Administration and Civilian Supply on proposed legislation re certificates of non-reimbursement .............. 42
Contract clearance, rate of progress .................... 66
Contracts, labor relations.................j........	4
Contracts, wage adjustments ............................  38
Contracts, wage and labor policy ........................ 29
Critical materials withheld by OPM ...................... 67
Dive bombers, conversion to torpedo planes ....	74
Electric power requirements ............................  47
Facilities, additional ............................. 4,17
Facilities for torpedo production ....................... 29
Facilities, unused, in defense plants..............	39
Federal Shipbuilding Company strike...................... 50
Funds available for immediate contract obligation 75
Inventory reports of material in non-fabricated form ........................................ 75,78
Materials requirements,	estimates, 1942 ........... 50
Materials requirements, estimates, consultation with OPM .....................................   41
Materials requirements, estimates to be obtained from Office of Budget and Reports .............. 61
Materials requirements schedule ......................... 32
Procurement procedure for war materials ................. 84
Program estimate for fiscal year 1942 ................... 17
Representation in sections of OPM ....................... 49
Request for simplification of forms for reports to
OPM ................................................... 68
Requirements, 1942 .....................................   5
Requirements advanced	for	fiscal year 1943 ....	21
Requirements estimates................................... 16
Requirements schedule	increased .................. 28
Requirements summary	...........................  33
Strike statistics publication............................ 29
Subcontracting directive ................................ 28
Subcontracting division to	be	established ....... 53
Subcontracting policy..............,....................  27
Subcontracting procedure,	clearance ................... 51
Tax certification, draft of bill on.................	27
Truman Committee data ................................... 12
Vacation policy ......................................... 40
Navy, Secretary of the, proposed tax certification responsibilities ..................................     57
Navy, Under Secretary of the:
Membership on Priorities Board ...:................. 1, 3
Privilege of attending Priorities Board Meetings 6
Necessity Certificates (see also Tax Amortization) :
Amendment to Revenue Act of 1940 ................... 33
Issuance by Secretaries of War and Navy proposed ..................................      57
Nelson, Donald M.:
Appointment	as	Director of Priorities	Division	60
Appointment	as	Director of Priorities,	proposed	55
Appointment	as	Director of Purchases	Division	2
Appointment	to	Plant Site Committee	. 10
Appointment	to	Special Committee on	Defense
Sub-Contracting ........................ .............. 20
Subject	Page
Nelson, Donald M. (Cont.) :
Approval of contracts...........................  7
Joint proposal with Morgenthau on contracts ..	15
Report on progress of the Plant Site Committee	22
To be designated Chairman of the War Production Board...................................    87
New York State, survey of loss of machine hours of work ...................................   ........... 20
Nickel Branch, establishment ......................   59
Non-Reimbursement Certificates (see also Tax
Amortization) :
Amendment to Revenue Act of 1940 .... t............	33
Backlog .............................................  57
Delay in processing................................... 25
Documents	on	record ........................   16
Failure of Government to issue........................ 86
Policy............................................     28
Proposed legislation  ................... ,........... 42
Norden bombsight:
Possibility of release to British and other governments .......................................    79
Proposed release to British ..................   43
North American Aviation, Inc., strike-............	32
O
O’Brian, John Lord:
Appointment as General Counsel proposed............	2
Appointment as General Counsel confirmed ....	6
Retention as General Counsel	. ?.A ...	3
Odium, Floyd B., appointment as Director of Contract
Distribution Division................  ............	57,60
Oil Unit, functions abolished ....................... 47
Olin Corporation, operation of aluminum plants ....	41
Oliver, Eli, appointment to Plant Site Committee ...	10
O’Neill, James L., appointment as Deputy Director of Priorities Division.........................        28
Ordnance Branch: Establishment................................      58
Production report and estimates of August 1, 1941	51
Ordnance:
Construction projects, War Department procedure 2
Procurement, meeting with representatives of field
offices and Contract Distribution Division .....	75
Program, schedules for production ...................  59
Overtime work on Sundays and Holidays ............... 83
P
Pacific Coast (see West Coast)
Pacific Wage Conference Report, document on record 17
Palmer, Charles:
Clearance of priorities projects ....................  52
Responsibilities .....................................  2
Patents:
Legislation ....................................       21
No necessity for seizure .......................	9
Permanent Joint Board on Defense between U. S. and
Canada, appointment of liaison officer ............	5
Permanente magnesium plant ........................   44
Personnel:
Additional required for tax certification ............. 7
Authority to appoint dollar-a-year men..............	74
Changes ......................................     I	55
Dollar-a-year men, information for Truman Committee .....................................     78
Legal ......------------------------------......	1,2
Priorities Director’s request for additional ....	4
Relationship with private firms ......................  3
Petroleum Coordinator for National Defense, functions 47
Petroleum Pipe Lines:
Construction from Texas to Bayonne, New Jersey contemplated................................     53
Construction from Texas to the Eastern Seaboard 19
National Defense Pipe Lines, Inc. .............. 57
Pilots, British and Canadian, shortage .............  18
Subject	Page
Pistols, Army program, 1942 ..........................  41
Pittsburgh, TNT plant construction..................... 61
Plant Site Board:
Approval and clearance of plant facility contracts 37
Clearance............................................... 84
Establishment .......................................... 10
New locations for airplane plants ...................... 73
Progress in decentralization of facilities...........	36
Replaces Plant Site Committee .......................... 22
Plant Site Committee: Establishment........................................ 10
Name changed to	Plant	Site	Board.............. 22
Plumbing and Heating Branch,	establishment............	59
Plumbing code.......................................... 74
Pontiac Motor Company, simplification of 20 MM
Oerlikon gun ........................................    79
Powder (see also TNT) :
Plant location, Carbondale, Illinois.................... 30
Production program .................................     26
Smokeless, plant construction........................... 32
Power :
Conservation, daylight saving .................    30,35,46
Priorities ................................  .........	25
Requirements ....................  ....................  47
Supply for new aluminum plants ......................... 38
Power Branch, establishment ..........................  59
Power Unit, to be furnished estimates of requirements for future power needs by 0PM, Army and Navy 47
Preference Rating Orders :
Priorities Regulation 1 ............ .'................. 48
Report ...........................................       29
President (see also Executive Orders) :
Approval of plant facilities contracts ..............27,37
Message to Congress on regulation of prices ..	33
Reply to Senator Byrd................................... 53
Price Administration and Civilian Supply, Office of: Administrator appointed.............................. 14
Definition of functions ................................ 33
Delegation of authority on priorities .................. 35
Establishment........................................... 13
Jurisdiction in administration of priorities ......	31
Issuance of press release on July 20, without con-
sultation with OPM ...................................     45
Legislation for price administration.................27,33
Objection to elimination of Advisory Commission’s clearance of tax certification ..................  40
Plans and procedures ..................................  14
Relations with OPM .................................... 37,45
Reports of activities for weeks ending:
June 9 ............. ...........’....................	32
June 16 .................................... .........	34
June 23 ............................................     36
June 30 ..............................................   39
July 7...............................................    41
July 14 ............................  4................. 43
July 21 .............................................    46
July 28..............................................    48
Aug. 4 ..............................................    50
Aug. 11 ....................../.......................   51
Aug. is ...................... :......................   52
Aug. 25 ............................................     54
Sept. 1 .................... ;.. ;.. ..,..;....	56
Price Administration, Office of : Power to approve prices ..........................J..	76
Reports of activities for weeks ending:
Sept. 8 .............................. —..............   58
Sept. 15 ..............................,................ 60
Sept. 22 ..............................................  62
Sept. 29....................................... 63
Oct. 6 ..............................................    65
Tires distribution	functions .	  86
Price Consultant,	status .............................   2
Price fixing:	........
Authority ..............................................  12
. Legislation......................................... 27,33
Price Section, plans to establish....................   14
97
Subject	Page
Price Stabilization Division, Advisory Commission, proposed merger in new Office of Price Administration ................................................ 12
Printing and Publishing Branch, establishment	59
Priorities :
Actions, clearance through the Clearance Section, Priorities Division ..........,.................  49
Aid to defense housing projects, proposal............:	47
Authority reserved to OPM .......?......................  42
British contracts .....................................    4
British needs for ships, tanks, guns, bombers 19
Conflict in jurisdiction.............................     31
Delegation of authority	35
Deliveries in relation to production possibilities ..	46
Electric power .. .\........................JA..	28
Electric power for aluminum plants .....................  25
Enforcement procedure ................................... 62
Functions under Public 89	;........   39
Housing.............................................      49
Medium tank production .................................  68
Orders, effect on unemployment .........................  34
Petroleum ............................................    47
Powers, centralization .............................      28
Radar equipment ......................................... 75
Relations between 0PM and the Office of Price
Administration and Civilian Supply ......... 36.45
Steel for pipe lines ..................................   53
Priorities Act:
Delegation of powers ...................................  27
Powers granted ......................................     45
Priorities Board :
Membership .........................................      13
Privilege of Under Secretaries of War and Navy
to attend meeting ..i’ A'..........	6
Priorities Division :
Allocation plan in lieu of Defense Identification Stamp Plan ...................................... 54
Appointment of Deputy Director...................;....... 28
Appointment of Director ..........................   2,55,60
Authority for the administration of the statutory power to requisition property .................   80
Authorization to use the services of the Wage and
Hour Division, Labor Department........................... 48
Charts on stockpile program ...........................   36
Clearance of priorities.................................. 28
Duties and authority ...................................  60
Duties and functions under Executive Order of
Aug. 28, 1941 ............................................ 55
Functions................................................  8
Organization charts ...................................   28
Organization charts approved ............................. 1
Personnel........................................ 1,4
Preference orders issued :
June 1 to June 10 ............................:......... 32
June 10 to June 16 ...................................   34
June 16 to June 21 ....................................  36
July 1 to July 5 ......................................  41
Since establishment ..................................   29
Relations between OPM and the Office of Price
Administration and Civilian Supply .....................45,	53
Reports of activities for weeks ending: July 12 .....................................     43
July 19...............................................   46
July 26................................................. 48
Aug. 2 ..............................................	49
Aug. 9 ................................................. 51
Aug. 16 ...............................................  52
Aug. 23 ................................................ 54
Aug. 30 ..............................................   56
Sept. 6..............................................    57
Sept. 13 ............................................... 60
Sept. 20 ............................................... 61
Sept. 27 ..............................................  63
Oct. 4.................................................. 64
Oct. 11 ...............................................  67
98
Subject	Page
Oct. 18 .............................................   69
Oct. 25 ..............................................  72
Nov. 1 ...............................................  73
Nov. 8 .............................................    75
Nov. 15 ............................................... 76
Nov. 22 ............................................... 78
Nov. 29 ..............................................  80
Dec. 6 and	Dec. 13 ....................	82
Dec. 20 and	Dec. 27, 1941 and Jan. 3, 1942 ..	86
Jan. 10, 1942 .....................................     88
Representation in	commodity	sections .............. 49
Resignation of E.	R.	Stettinius,	Jr............  55
Priorities Information Circular:
Action on deferred ....................................  3
Adoption .,............................................  6
Priorities Regulation No. 1 :
Adoption ..........................................     48
Execution ....................................... 54
Procurement :
Procurement Circular No. 43, War Department 3
Proposed changes ..............................         49
Relationship between OPM and War Dept.................	82
Schedules for industries............................... 85
Production :
Ammunition plants ....................................  73
Comparison of Germany, United Kingdom, Canada, and United States ........................... 58
Military, chart on selected items for the month of June 1941 ...................................   47
Miscellaneous items ..................................  85
Planning, facilities and materials required..........	21
Program, future requirements..........................  16
Requirements, 1942 ..................................... 5
Schedules, Army, Navy, and Great Britain competing..........................................   46
Stimulation, policy statement ......................... 20
Utilization of civilian facilities .................... 42
Production Division :
Appointment of	Director........................  2
Chart on selected items of military production for
June 1941 .........................................   47
Functions ........................................... 1,8
Industrial Branches established ....................... 58
Information on idle facilities and tools................ 2
Organization charts ................................... 28
Organization charts approved............................ 1
Production Management, Office of :
Authority to appoint dollar-a-year men .......... 74
Authority to issue priority orders .............. 42
Authority under priorities amendment ............ 27
Clearance of information for Congressional Committees  .....................................  40
Clearance of orders for foreign purchase of machine tools ...................................... 50
Consultation with Navy before withholding critical materials from producers holding Navy contracts ........................................    67
Contract clearance .............................. 80
Delegation of authority ............................... 35
Delegation of priorities powers ....................... 55
Industrial branches organized.......................... 58
Jurisdiction in administration	of priorities ....	31
Labor policy.......................................     64
Limits of responsibilities in clearing and approving Lend-Lease requisitions....................... 45
Meetings ............................................ 1,16
Organization chart revised ..........................   43
Organization charts ................................... 28
Organization charts approved............................ 1
Relations with industry ............................... 35
Relations with Office of Price Administration and
Civilian Supply ............................ 33,37,45,53
Relations with War Department regarding procurement ......................................... 82
Relationship to the Defense Program.................... 86
Subject	Page
Production Management, Office of (Cont.) :
Reports of activities for weeks ending: June 9........................................ 32
June 17 ................................................ 34
June 24 ..............................................   36
Reports of activities and personnel changes for
weeks ending: July 7........................................   41
July 14...............................................   43
July 21 ................................................ 46
July 28.............................................     48
Aug. 4 ...............................................   50
Aug. 11 ..............................................   51
Aug. 18 ..............................................   52
Aug. 25 ...............................................  54
Sept. 1 ..............................................   56
Sept. 8 ...............................................  57
Sept. 15 ............................................... 60
Sept. 22 .............................................   62
Sept. 29 ..............................................  63
Oct. 6 .......................... ;....................  64
Oct. 13 ................................................ 67
Oct. 20................................................  69
Oct. 27...............................................   72
Nov. 3 ................................................  73
Nov. 10 ...........................................      75
Nov. 17 ..............................................   76
Nov. 24 ........................................         78
Dec. 1................................................   80
Dec. 13 ...........................................      82
Jan. 5,1942 ..................,....................      86
Representation on Board of Enforcement.........	39
Representation on Board of Review ................ 67
Requisitioned property ...................... ....	85
Review and examination of estimates of material requirements.....................................	45
Shortage of space.....................................  61
Shortage of space in Washington ....................... 77
Production Planning Board: Establishment....................................   30
Functions.............................................	16
Report ...............................................  25
Transfer from Production	Division............. 30
Public attitude toward the Defense Program.......... 36, 37
Public 89, power granted under the Priorities Act ....	45
Publicity, Defense Program.......................... 36,37
Pulp and Paper Branch, establishment.................... 59
Purchases Division: Appointment of Director.................................. 2
Contract clearance....................................  60
Contract clearance authorization....................... 66
Contract clearance between June 2 and June 23 ..	36
Functions................................................. 3
Functions, status......................................... 8
Industrial Branches established.......................  58
Organization charts ................................... 28
Organization charts approved ........................... 1
Procedure and personnel...............................   2
Purchases, Foreign: Machine tools...................................    50
Non-lend-lease ........................................ 60
R
Race discrimination, Executive Order................... 44
Race relations......................................... 38
Radar equipment :
Production and delivery..............................   79
Urgent need for........................................ 75
Railroad cars, shortage ..............................  31
Railroad tank cars, shortage........................... 53
Railroad transportation (see Transportation, Railroad) Refrigerator industry, conversion...................42,46
Regulations :
No. 2A, authorizing clearance of facility contracts by Purchases Division .........................   78
Subject	Page
No. 3, restating duties of the Director of Priorities 55
No. 5, establishing a Labor Division..................... 10
No. 6, establishing the Plant Site Board..............	22
No. 7, authorizing the formation of Defense Industry Advisory Committees and establishing a Bureau of Clearance of Defense Industry Advisory Committees ............................... 35
No. 7A, changing the name of the Bureau of Clearance of Defense Industry Advisory Committees to Bureau of Industry Advisory Committees ...	73
No. 8, authorizing the formation and regulating the operation of Defense Labor Advisory Committees .......................................   40
No. 9, establishing the Defense Contract Service and prescribing its duties and functions........	47
No. 10, establishing a Division of Materials and prescribing its duties and functions ...........  55
No. 12, Industry Advisory Committees, procedure for formation..................................   88
Republic Steel Corporation, Cleveland plant enlargement ................................................. 66
Requirements:
Conflicting............................................   46
Equipment for Armed Forces............................... 85
Estimates...........................  41,49,50,59
Estimates, Army and Navy Munitions Board	....	45
Estimates, Bureau of Research and	Statistics	....	61
Estimates, cooperation with War and Navy Departments ....................................... 53
Foreign...............;............................... 5
Increased program ______________________________________   28
Navy Department.......................................... 32
Requirements, General, or Strategy	Board, proposal ..	46
Requisitioning :
Draft of order unsatisfactory to OPM ....................  76
Machine tools ................................ 38, 56,59,69
Machine tools and materials for Russia ..........	68
Power of seizure........................................  27
Powers.................................................   64
Proposed Executive Order............................. 65,	71
Purchase by Defense Supplies	Corporation......	85
Research and Statistics Bureau:
Establishment and functions ............................   9
Estimates of material requirements ...................... 61
Estimates of material requirements, procedure ...	59
Organization charts...................................... 28
Request for confidential information by Congressional Committees...............................  59
Statement of the number and kinds of reports required from Navy Department...................... 68
Revenue Act of 1940 :
Amendment.......................................... 33,42, 61
Second, tax certification activities...................... 4
Rifles, Garand, Army program, 1942 ................... 41
Rosenman, Samuel I., Judge:
Designation by the President to study the problems of administration of priorities............. 51
Draft of new Executive Order for administration of priorities..................................   53
Rubber and Rubber Products Branch, establishment.. 59
Rubber leak-proof fuel tanks....................... 77,	79
Rubber, Synthetic :
Expansion of production facilities....................... 21
Production facilities.................................... 19
Russia :
Machine tools requisition ............................... 68
Military Mission, request for machine tools ......	50
Tools and critical materials ............................ 66
Trucks specifications ................................... 79
S
Sabotage, legislation...............................31,	33
St. Lawrence Seaway and Power Project................. 31
Scrap collection campaign............................. 86
99

Subject	Page
Secretary:
Appointment ......................................... 1,6
Title changed to Executive Secretary.................... 57
Selective Service and Training Act of	1940:........... 81
Deferment of employees................................   16
Deferment of skilled workers............................ 14
Requisitioning of machine tools......................... 38
Selective Service System, reclassification of workers ..	32
Senate Committee, hearings on Second Revenue Act of
1940 .................................................... 61
Seven day work week...................................  81
Shipbuilding:
Program, progress report ............................... 51
Situation, Pacific Coast ............................... 24
Shipbuilding Branch, establishment....................  58
Shipbuilding Regional Stabilization Agreement, Chicago area, completed.................................   38
Shipbuilding Stabilization Agreement, model for Aircraft Stabilization Agreement ........................  32
Shipbuilding Stabilization Committee, sponsorship of agreement governing Pacific Coast Shipbuilding Industry ................................................ 24
Shipping:
Dockage and transportation facilities to Russia ..	66
Truman Committee investigation ........................  21
Silk, raw, estimates of requirements................... 49
Smith, Geoffrey, appointment as Assistant General
Counsel in charge of priorities .......................... 9
Social Security Board, Employment Security Bureau, authorization for direct use of employment service funds............................................       31
Social Security, unemployment compensation, proposed legislation for ....................................	88
Special Committee on Defense Sub-Contracting, membership ..................................J.....	20
Sperry Corporation:
Anti-trust actions...................................... 34
Subcontracting.................................  ......	19
State and Local Cooperation Division, responsibilities 2 State and Local Government Requirements Branch, establishment .......................................   59
State Department, agreement with Iceland............... 60
State employment offices, grants in aid................ 31
State Governors, requests to Knudsen..................   2
States, taxation of defense industries ................	10
Statistical reports, weekly, circulation and distribution 18
Statistics, strikes, uniformity ....................... 29
Steel:
Conversion of strip mills to the manufacture of plate ...............................i......... 75,76
Defense production survey.............'........... 42
Facilities, expansion........................   66,76
Labor, wages, increases ...........................-.... 21
Priorities  .........................................     2
Priorities for pipe lines.............,♦...............  53
Substitution for brass in cartridges...................  38
Steel Forgings:
Increased needs for production.........................  24
Shortage of dies..........,............................  74
Steel Plate:	c .	.
Conversion of strip mills to plate production........	76
Shortage.............................................    75
Steel, stainless, delays in delivery.........	71
Steel, structural, delays in delivery ....;............ 71
Stettinius, Edward R., Jr.:	............ :	. .
Appointment as Director of Priorities Division ..	2
Appointment to Material Coordinating Committee 16
Appointment to Special Committee on Defense
Sub-Contracting ..................................•...	20
Memorandum on overlapping program of Priorities Division and Office of Price Administration and Civilian Supply ............................   53
Resignation as Director of Priorities .................. 55
Stockpile Program: Charts..........................................■... 36
100
Subject	Page
Requirements .......................................... 24
Schedule .............................................. 33
Stockpiles :
Copper ..............................................   33
Gasoline ............................................   66
Requirements increased to three year basis..........	24
Strategic materials, exemption from customs duties ..	18
Strategy Board, establishment proposed................ 46
Strikes: ........................................    7,61
Allis-Chalmers Manufacturing Co. ...................... 11
Dow Chemical Company................................... 34
Federal Shipbuilding Company .........................  50
Lincoln Mills of Alabama........................ 63,64,65
North American Aviation, Inc................}.......... 38
Situation...........................................    16
Statistics .........................................    29
West Coast............... .......................       32
Subcontracting :
Defense Contract Service program....................... 50
Directive, Navy Department proposal.................... 28
Placing of specialists at Hudson Motor Car Com-
pany and Navy Arsenals..................................  78
Policy ...........................................20,24,27
Procedure ................................ J..........	51
Recognized need for aiding small business through
extension ...............................  .............. 68
Special Committee on Defense Sub-Contracting ..	20
Stimulation ........................................ 19,49
Stimulation by Defense Contract Service.............	46
Subcontractors, addition to master preference list for machine tools ........................................ 69
Subversive activities........................... 19,31,33
Supply Priorities and Allocations Board:
Creation............................................... 55
Reports of activities for weeks ending:
Sept. 8 and Sept. 15 .................................. 60
Sept. 22...............................  $............. 62
Sept. 29 ...........................................    63
Oct. 6................................................. 65
Oct. 13...............................................  67
Nov. 3............................................      73
T
TNT (see also Powder) : Production .....................................    59
Production schedule...................................  61
Requirements, U. S. and Great Britain.................. 70
Tank and Combat Section, recommendations for conversion of facilities................................. 42
Tankers, construction for oil transportation considered ................................................. 53
Tanks :
Adoption of liquid-cooled motors to increase operative efficiency.............................   45
Engines, General Motors diesel......................... 87
Production............................................. 47
Requirements for armor plate .......................... 67
Tanks, medium:
Increased production .................................  77
Production............................................  68
Tax Amortization (see also Government Protection Certificates; Necessity Certificates; Non-Reimburse-ment Certificates) :
Certification .................. .tL..... 27,40
Delays in processing ......................... ;..'.	7
Elimination of Advisory Commission from the
tax certification process................................ 53
Legislation.......................     2............29,59
OPM to act as coordinator............................... 4
Responsibility of OPM.................................	71
Special committee appointed  .......................... 78,86
Tax Certification Unit, transfer to General Counsel’s Office.............................................    55
Taxation of defense industries by States.............. 10
Temporary Building “E”, assignment to OPM............	61
Subject	Page
Tennessee Valley Authority, permission to give priority on power .................................     25
Textiles, Clothing and Equipage Branch, establishment 58
Thermador Electric	Company, contract bid.........	72
Thompson, E. M., Commander, designated as contact man with OPM on Navy Department material estimates .............................................. 53
Tin-Lead Branch, establishment......................  59
Tires, distribution delegated to Office of Price Administration .......................................... 86
Tools {see Machine Tools)
Tools Branch: Clearance of machine tools....................... 76
Establishment......................................... 58
Torpedoes :
Production, additional facilities..................... 17
Production facilities................................  29
Townsend, Clifford, appointment to Plant Site Committee ............................................. 10
Transportation, Railroad :
Ore shipments from Minnesota area..................... 62
Shortage of cars...................................... 31
Shortage of freight cars.............................. 33
Treasury Department, Procurement Division, tungsten held ................................................ 2
Trecker brothers, transfer to Production Division ....	2
Trucks, military specifications....................... 79
Truman Committee:
Information concerning dollar-a-year men in
OPM ................................................ 78
Investigation of the defense program.................. 21
Preparation of data for............................... 12
Tungsten, authorization to sell....................... 2
Tungsten Branch, establishment........................ 59
Turbines :
Delay in deliveries to Navy........................... 70
Development of new sources............................ 81
U
Unemployment :
Compensation ......................................... 88
Relation to priorities actions................,....... 51
Union Carbide and Carbon Corporation, operation of aluminum plants..................................... 41
Unions, initiation fees............................... 6
V
Vacation policy: Executive Order.................................. 40
OPM proposal for industry............................. 15
Private employees on defense work..................... 18
Vanadium Corporation, labor disputes................. 11
Victory Program, aluminum requirements............... 87
W
Wage Stabilization Agreement {see Aircraft Stabilization Agreement; Shipbuilding Stabilization Agreement)
Wages :
Construction industry policies........................ 29
Extra compensation for second and third shift operations ..................................... 4
Index of average hourly earnings to replace aircraft industry index............................ 6
Policy, need of....................................... 21
Stabilization ........................................ 39
Walsh-Healey Act, exemption proposed for canned goods requirements of	War Department................ 22
War Department : Aircraft, commercial, deliveries  ............... 11
Aluminum elimination from all items of procurement ........................................   38
Aluminum requirements reduced for uses other than airplanes ................................ 69
Ammunition plants, placement of orders........	73
Subject	Page
Anti-aircraft guns ................................     31
Appropriations......................................... 37
Appropriations for Army program........................ 41
Bills of lading procedure ...........................   71
Bombers, notification to freeze design................. 47
British aircraft production schedule................... 87
Centralization of authority on construction.........	2
Certificates of necessity.............................. 33
Clearance of confidential information ................. 60
Competition with Navy in delivery of goods..........	11
Consideration of statute to seize patents...........	21
Construction .......................................... 83
Contract authorizations................................ 79
Contract clearances.................................... 80
Contract clearances, rate of	progress................. 66
Contract Distribution Division,	establishment ....	53
Contracts, adjustment of labor and material costs 82
Contracts, exemption from provisions of the
Walsh-Healey Act....................................... 22
Contracts, labor relations.............................. 4
Contracts, need for expediting deliveries...........	37
Contracts, plant facilities procedure.................. 37
Contracts, wage adjustments............................ 38
Contracts, wage and labor policy....................... 30
Corps of. Engineers, project for deepening Cuyahoga River....................................... 66
Erection of building to permit units in Social Security Building to move and release space to
OPM ................................................... 77
Inventory reports of material in non-fabricated form  ........................................ 75,78
North American Aviation, Inc., Los Angeles plant, seizure .......................................   32
Number of men in Armed Services by end of 1943	85
Organization of a special bureau on contracting..	52
Procurement Circular No. 43............................. 3
Procurement procedure for war materials.............	84
Relations with OPM regarding procurement............	82
Representation in the sections of OPM.................. 49
Requirements .......................................... 85
, Requirements advanced for fiscal year 1943 ......... 21
Requirements estimates, consultation	with OPM..	41
Requirements estimates, future......................... 16
Requirements estimates for raw materials, 1942 ..	50
Requirements for future power	needs........... 47
Requirements for production of articles beyond a troop basis....................................   37
Requirements, schedule of increased.............. 28
Review by OPM and Ordnance Department of
Lend-Lease appropriation estimates..................... 47
Strike statistics ..................................... 29
Subcontracting policy.................................. 27
Subcontracting procedure............................... 51
Tank production, issuance of conditional letters of intent........................................ 47
Tax certification, draft of bill on.............. 27
Transfer of construction work from Quarter-
master Corps to Corps of Engineers..................... 53
Truman Committee data.................................. 12
Unplaced orders........................................ 29
Unused facilities in defense plants.................... 39
Vacation policy......................................   40
War Munitions Program, schedule of requirements ..	83
War Production Board, chairman to be appointed ....	87
War, Secretary of:
Objection to proposal of Commercial Aircraft Priority Committee................................   11
Proposed tax certification responsibilities.........	57
War, Under Secretary of: Membership on Priorities Board................... 1,3
- Privilege of attending Priorities Board meetings..	6
Weinberg, Sidney J.:
Appointment as Chief of the Bureau of Clearance
of Defense Industry Advisory Committees ....	35
Organization report on Defense Industry Advisory Committees...........;...................	61
101
102
Subject	Page
Weiner, Joseph, designation as Chief of proposed
Civilian Allocation Division, Office of Price Administration and Civilian Supply ........................  14
West Coast:
Labor aircraft agreement   ............................   46
Labor situation.........................................  32
Shipbuilding situation......................j.........	24
Subject	Page
Welders .......................................	73
Whiteside, A. D., report of Commercial Aircraft Priorities Committee ................................  11
Wise, James D., membership on National Labor Relations Board........................................  6
Wright Field, tests in firing 20 MM Hispano Suiza Guns ............................................   74
☆ U. S. GOVERNMENT PRINTING OFFICE: 1946-677867