BIG BUSINESS [From the New York Daily Mirror] "Big business" in America made the following figures possible. The figures show the number of automobiles owned per 100 persons in the following countries: Twenty-two in the United States; eleven in Canada; five in France; two in Germany and one in Italy. Americans own and operate 70 per cent of the automobiles in the world. More than half of the American families that own automobiles have an income of only $1,500 or less. And speaking of incomes, the average worker's income in America is $1,275; the average British worker earns $783 per year; the German worker has an annual income of only $718; the Italian gets only $239. That is the difference in living conditions under a democracy and under a dictatorship and the difference between free private enterprise and complete government control of business. EXHIBIT 5485-L (Prepared by Committee Staff) ANALYSIS OF N. A. M. "INDUSTRIAL PRESS SERVICE" [July 6, 1936, to June 28, 1937] The Industrial Press Service is a weekly clip sheet published by the N. A. M. and sent to more than 6,000 newspapers.1 Each weekly release contains cartoons, one or more editorials, several news items, a column of political comment entitled "Washington Snapshots," and sometimes a "filler" paragraph or two. This analysis is limited to these features, although in addition the service contains each week a short article entitled "Weekly Constitutional," dealing with history of the Constitution, and a news box entitled "Today's Taxogram.' Examples of the service appear in part 18 as exhibits 3885-G and 3885-J. General subjects or topics are listed in the left-hand column. Such subject headings are necessarily abbreviated and are intended to provide merely a rough general classification of the contents of the various articles and features of the service. The figures represent the number of articles or features on a given subject, with the exception that the figures under "Washington Snapshots," which frequently deals with more than one subject, refer to the number of times the subject is mentioned in the column during the year. 2. Salaries of executives not excessive. 3. Stock ownership widespread.. 4. Capital essential to production. 5. Large portion of national income and in- 6. Large number of savings accounts and in- 7. "Office boy to president"-equal oppor- 8. Large portion of business is conducted by 9. Miracles produced by industrial research; K. The machine has been beneficial rather than L. Boosting America; liberty, standard of living; steady improvement over period of years; against all 'isms. M. Exports and imports: Imports high, exports fallling; America does not need to import much but she must import farm products; trade treaties.. N. Miscellaneous.. ORGANIZING INDUSTRIAL STOCKHOLDERS EXHIBIT 5486 (Cooperative Stockholders.) NATIONAL ASSOCIATION OF MANUFACTURERS, 11 West Forty-Second Street, There was discussion at the last meeting of the Board of Directors about the possibility of organizing industrial stockholders to defend their rights as investors. In this connection it would be very helpful if you would send us the names of three or four industrial stockholders with whom you are acquainted. These individuals should not be officers or employees of industrial corporations, but should be stockholders in such corporations. It is not necessary that they be wealthy individuals in the community. They should be reasonably well known, favorably known, and individuals who would be inclined to cooperate constructively in any activity to defend the interest of stockholders. Your cooperation in this matter will be most helpful. Very truly yours, Executive Vice President. To Board of Directors: EXHIBIT 5487 [Copy] NATIONAL ASSOCIATION OF MANUFACTURERS, 11 West 42nd Street, New York City, October 1, 1935. The Board of Directors at its meeting Friday approved prompt organization under our leadership of the "Associated Industrial Shareholders". It was agreed that the directors should primarily be individuals of local prominence in their communities who are not directly connected, except as stockholders, with any industrial company. I enclose herewith a tentative list of individuals who have been considered as possible directors of the shareholders' organization. It will be very helpful if you will send us an early expression of your opinion as to whether any individual you may know would be desirable in this capacity. If for any reason you believe any of them would be non-cooperative, antagonistic or not favorably known to others in the community we should like your judgment on this. Very truly yours, Executive Vice President. LETTERS TO SHAREHOLDERS EXHIBIT 5488 Copy-From Mr. Chester (Outlining two plans of distribution of shareholders letters)] OCTOBER 6, 1936. The second of the N. A. M. series of four letters to shareholders' is enclosed. We believe that it tells a story essential to their interest which is of fully the same importance as that contained in the first issue which was sent you on August 15. Of the many important functions which industrial management must keep before it, one of the larger ones must certainly be the informing of the owners of each business of all broad policies which affect their interest. The industrial shareholders are an essential element in our national economy today and their interests deserve equal consideration with those of every other group in the body politic. Therefore, if you have not already arranged to send this series to your stockholders, may I respectfully suggest that you give this your prompt consideration. The various bases on which these bulletins can be secured were outlined in my previous letter and are repeated here to bring them again to your attention. Plan No. 1.-For you to mail to shareholders: The National Association of Manufacturers will send you as many copies of each bulletin as you can distribute. The bulletins will be plainly designated as an N. A. M. publication. There will be no charge for the bulletins, that being a part of the N. A. M. service to members. There will be a small charge of $1.25 per thousand copies for bulk mailing costs. Plan No. 2.-Direct mail to your shareholders: If you have not already sent in your shareholders list, do so now (for our confidential use only). We will send them the Shareholders letters directly as issued, each being shown clearly as a National Association of Manufacturers' publication. This may be done on either of the following bases: (a) All four issues mailed when ready without further notice, which would expedite mailing considerably, or (b) Each issue mailed only after submitting it to you for approval. Again, as in Plan No. 1, the bulletins are free. There is a handling charge at the rate of $8.00 per thousand for addressing, inserting, sealing, etc., plus the actual billing of first-class postage for each issue. 1 The first of these letters appears as exhibit 5485-C. If you already have given us your instructions with respect to this matter, this letter should be disregarded. I personally feel, however, that if your company has not yet considered one of the plans outlined above, it should do so at the earliest possible moment. Very truly yours, C. M. CHESTER, President. EXHIBIT 5489 NATIONAL ASSOCIATION OF MANUFACTURERS OF THE UNITED STATES OF AMERICA 11 West 42d Street, New York (In pencil) JUNE or JULY 1936. There are about 3,100,000 members of the American Federation of Labor; approximately 3,000,000 veterans received bonus bonds this June. These are two groups whose numbers are considered sufficient to make our legislators sit up and take notice. Yet there are 12,000,000 investors in American corporations who, as a group, do not receive the same consideration. Why is it that these investors, representing America's working capital, are not given such consideration? Why is it that the punitive laws against industry-which means "against investors"-are passed with little hesitation. Partly because investors are unorganized. But more fundamentally, because they do not have a clear conception of the American industrial system and their relation to it-they lack information. An appreciation of their common interest in industrial welfare would make many of them articulate in their own defense. In rounding out its public information program, the National Association of Manufacturers is preparing a series of four letters to shareholders, designed to show them their place in our economic system and how present-day policies are affecting their interests. A copy of the initial letter, which reviews recent Federal legislation and Supreme Court decisions affecting industry, is enclosed. The following subject matter is planned for succeeding issues: No. 2. The nature of industry and the shareholders relationship to it. No. 3. The attacks upon industry and what can happen unless they are checked. No. 4.-(December) The 1937 outlook for industry and what shareholders can do about it. These bulletins are available to you under either of the following plans: Plan No. 1.-For you to mail to shareholders: If you will order all four issues now (in advance so printing volume can be determined) the National Association of Manufacturers will send you as many copies of each bulletin as you can distribute. The bulletins will be plainly designated as an N. A. M. publication. There will be no charge for the bulletins, that being a part of the N. A. M. service to members. There will be a small charge of $1.25 per thousand copies for bulk mailing costs. Direct mail to your shareholders: If you have not already sent in your shareholders list, do so now (for our confidential use only). We will send them the Shareholders Letters directly as issued, each being shown clearly as a National Association of Manufacturers' publication. This may be done on either of the following bases: (a) All four issues mailed when ready without further notice, which would expedite mailing considerably, or (b) Each issue mailed only after submitting it to you for approval. Again, as in Plan No. 1, the bulletins are free. There is a handling charge at the rate of $8.00 per thousand for addressing, inserting, sealing, etc., plus the actual billing of first-class postage for each issue. We feel that Management has two fundamental reasons for using these bulletins one, the duty of keeping the owners of your business informed of the manner in which they are affected vitally by public policy; two, the shareholder is management's natural ally in correcting industry-baiting policies. All that is necessary is to show them how their interest and industry's are aligned. These shareholders Letters constitute a constructive effort to tell that story. A prompt response, indicating clearly whether Plan No. 1, 2 (a) or 2 (b) is to be followed, will enable this plan to move forward immediately. Very truly yours, President. EMPLOYER-EMPLOYEE SERVICE EXHIBIT 5490 NATIONAL ASSOCIATION OF MANUFACTURERS-NATIONAL SURVEY OF Foreword Field of Survey.-Employers throughout the country who used any part or all of the Employee Information Service in 1936. Type of Survey.—A questionnaire was mailed to each employer, requesting information in answer to the question set forth, and additional comment, if possible, in an accompanying letter. Purpose. To establish the reaction of employees and employer to the Employee Information Service, and further, to analyze any comments or recommendations advanced. Material Used as Basis for Our Study.-Of the 282 respondents who replied to our questionnaire, the majority returned completely or partially answered questionnaires, many of them with explanatory letters. The balance wrote letters only, omitting the questionnaire type of reply and giving general information and data. These letters constitute one part of our study and the questionnaires with their accompanying letters, another. Questionnaires (with accompanying letters) 186 76 262 NATIONAL ASSOCIATION OF MANUFACTURERS EMPLOYEE INFORMATION SERVICE REACTION-TOTAL RESONDENTS, 262 NO. 1-WHICH TYPE OF MATERIAL DID YOU DISTRIBUTE AND USE? The type of material distributed and used (leaflets, posters or films), was clearly indicated in the questionnaires, whereas the letters were less definite on this point and conveyed the information indirectly. This would explain, in part, the better showing the questionnaires make above. |