EXHIBIT S-224 [Released from the White House, March 28, 1942] On March 20 the President received from the Attorney General, the Secretary of War the Secretary of the Navy, and Thurman Arnold the following signed memorandum: "MARCH 20, 1942. "DEAR MR. PRESIDENT: The undersigned have been considering for some time the problem presented by the fact that some of the pending court investigations, suits, and prosecutions under the antitrust statutes by the Department of Justice, if continued, will interfere with the production of war materials. "In the present all-out effort to produce quickly and uninterruptedly a maximum amount of weapons of warfare, such court investigations, suits, and prosecutions unavoidably consume the time of executives and employees of those corporations which are engaged in war work. In those cases we believe that continuing such prosecutions at this time will be contrary to the national interest and security. It is, therefore, something which we seek to obviate as quickly as possible. "On the other hand we all wish to make sure: (1) That no one who has committed a violation of law shall escape ultimate investigation and prosecution; (2) that no such person shall even now be permitted to postpone investigation or prosecution under a false pretext that his undivided time is necessary to the war effort-in other words that it must be preponderantly clear that the progress of the war effort is being impeded; and (3) that no one who has sought actually to defraud the Government shall obtain any postponement of investigation or prosecution in any event. "Accordingly we have worked out the following procedure, subject to your approval. "Each pending and future Federal court investigation, prosecution, or suit under the antitrust laws will be carefully studied and examined as soon as possi ble by the Attorney General, and the Secretary of War or the Secretary of the Navy respectively. If the Attorney General and the Secretary of War or the Secretary of the Navy come to the conclusion that the court investigation, prosecution, or suit will not seriously interfere with the all-out prosecution of he war, the Attorney General will proceed. If they agree that it will interfere, or if after study and examination they disagree, then, upon receipt of a letter from the Secretary of War or the Secretary of the Navy stating that in his opinion the investigation, suit, or prosecution will seriously interfere with the war effort, the Attorney General will abide by that decision and defer his activity in that particular matter, providing, however, that he shall have the right, in such event, to lay all the facts before the President, whose determination, of course, shall be final. In each case the action finally taken will be made public. "The deferment or adjournment of the investigation, suit, or prosecution will not, however, mean the exoneration of the individual or corporation, or the discontinuance of the proceeding. As soon as it appears that it will no longer interfere with war production the Attorney General will proceed. "To make sure that no one escapes by the running of the statute of limitations we shall request Congress to pass an appropriate extension of the statute. "Under no circumstances will there be any suspension or postponement of prosecution for any actual fraud committed against the Government. "We feel that this arrangement will adequately protect the public interest. "Respectfully yours, FRANCIS BIDDLE, Attorney General. HENRY L. STIMSON, Secretary of War. FRANK KNOX, Secretary of the Navy. THURMAN ARNOLD." On the same day, Mrch 20, the President in identical letters addressed to the Attorney General, the Secretary of War, and the Secretary of the Navy notified them of his approval of the procedure outlined in the above memorandum. The President's letter reads: "MARCH 20, 1942. "I approve of the procedure outlined in your memorandum to me dated March 20, 1942. If it is true that any substantial slowing up of war production is being occasioned by antitrust suits, prosecutions, or court investigations, then the war effort must come first and everything else must wait. For unless that effort is successful, the antitrust laws, as indeed all American institutions, will become quite academic. "No one, of course, should be permitted to escape ultimate prosecution for any violation of law. I am sure, that the Departments of Justice, War, and Navy will all cooperate so that the needs of the war will not be hampered by these court investigations, suits, or prosecutions, but that at the same time the crisis of war will not be used as a means of avoiding just penalties for any wrongdoing. In other words, it must be made very clear that the war effort is being impeded. No right-minded person, or anyone who is conscious of what is at stake, should use the Nation's extremities as an excuse to violate any statute. "Nor indeed should there be any deferment or adjournment of any court investigation, prosecution, or suit unless, after a study and examination with the Attorney General in each specific case, the Secretary of War or of the Navy is satisfied that the war effort will be jeopardized at this time unless such course is followed. "I note from your memorandum that proper steps will be taken to avoid the running of the statute of limitations in any case; and that under no circumstances will there be any delay in the prosecution of acts involving actual fraud upon the Government. "I also heartily approve your intention of making public each determination arrived at by you in accordance with your memorandum. The American people should be informed of each step in their war effort, excepting, of course, any information which may in any way help the enemy in his attempt to destroy us. 'While every precaution will be taken to prevent anyone from escaping prosecution if he has violated the antitrust statutes, whether he is now engaged in war work or not, we must keep our eyes fixed now upon the one all-important primary task-to produce more materials at a greater speed. In other words we shall give our attention to first things first. "Very sincerely yours, Memorandum. "FRANKLIN D. ROOSEVELT." EXHIBIT S-225 DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, To: Mr. Ward Bowman, Subcommittee on Study of Monopoly Power. Subject: Primary Market Price Indexes (1926-100) for Selected Steel Mill In accordance with your request when you visited this office March 30, I am attaching tables showing index numbers (1926=100) by months from January 1940 through February 1950 for the following four semifinished and eight finished steel mill products. Semifinished steel mill products: Finished steel mill products: Merchant wire Wire nails Hot-rolled sheets Cold-rolled sheets Galvanized steel pipe Hot-rolled bars Cold-finished bars Currently the price quotations generally used are the f. o. b. mill "published" base prices of important producers principally in the Pittsburgh area. Prior to July 1948, basing point prices were used. The Bureau's indexes reflect no change as a result of the shift from basing point to mill prices. Some of the common extras are combined with base prices for five of the finished steel mill products shown on the attached tables. The products on which these extras are used and the type of extras used are as follows: I am also attaching a copy of special indexes of steel mill products which were prepared at the request of the Joint Committee on the Economic Report. More detailed specifications of the 12 products for which you requested indexes are shown in table 1 of this report. I trust that this information meets your needs. If we can be of further service to you, please call upon us. EXHIBIT S-225A Primary market-Price indexes of selected semifinished and finished steel mill products, by months, January 1940 through February 1950 Primary market-Price indexes of selected semifinished and finished steel mill products, by months, January 1940 through February 1950-Continued Source: U. S. Department of Labor, Bureau of Labor Statistics, Washington 25, D. C., Apr. 3, 1950. EXHIBIT S-225B Primary market-Price indexes of selected semifinished and finished steel mill products, by months, January 1940 through February 1950 Source: U. S. Department of Labor, Bureau of Labor Statistics, Washington 25, D. C., Apr. 3, 1950. EXHIBIT S-225C PRICE INDEXES OF STEEL-MILL PRODUCTS [U. S. Department of Labor, Bureau of Labor Statistics, Washington, D. C.] At the request of the Joint Committee on the Economic Report,' the Bureau of Labor Statistics has prepared index numbers (1926-100) for finished and 1 These special indexes were originally requested for presentation by the Committee at the steel price increase Hearings held January 24-27, 1950. They, however, were not available before the Hearings were completed but are included in the Report of Findings on the December 1949 steel price increase Hearings. |