EXHIBIT 45.-AIRPLANE ENGINE AND CARGO TRUCK MANUFACTURE IN SOUTH BEND, IND.

REPORT BY THE STUDEBAKER CORPORATION, SOUTH BEND, IND.

A brief summary of the defense activities of the Studebaker Corporation will be helpful in understanding our position and the reasons why we do not have a serious labor migration problem.

At the present time the Studebaker Corporation is engaged in two major defense activities. It is preparing to build Wright airplane engines for the United States Air Corps, and it is producing 6 by 6 cargo trucks for the United States Army.

The aviation engines are to be produced at three plants-South Bend, Chicago, and Fort Wayne, respectively. Active construction of these three plants is under way at the present time.

The Studebaker Corporation received an educational order for five hundred 6 by 6 Army cargo trucks. Production on this educational order started in June and has been completed. Further orders calling for 4,960 trucks of the same type and a supplementary order for 754 trucks have been received. Production on the two subsequent orders started on September 15 and it is expected that the orders will be completed before December 31.

The Army trucks are being produced on our truck assembly lines in South Bend, lines capable of producing both civilian commercial units and Army units. A study of special projects under consideration for the United States Army is being carried out by our engineering staff at South Bend.

As can be seen from this summary, for the period under review Studebaker was not engaged in actual defense work on a large scale, the bulk of its defense activities having consisted of development and construction work looking toward future production. The construction work on the aviation engine plants is being done by contractors and does not involve the use of Studebaker workers. The Army truck educational order was the only defense work Studebaker engaged in during the period which required the use of a part of its labor force.

1. Past and future employment. It is believed that the most active picture as to our past and future labor requirements can be given through the use of data covering hourly workers only. In the absence of specific instructions on this point, the information given applies only to such workers.

The following is a statement of the average number of workers on our pay roll, by months, for the past year, that is, from August 1, 1940, to August 1, 1941, classified as between our automobile and truck manufacturing plant operations at South Bend, the automobile assembly plant operations as Los Angeles, and our aviation engine division. Since the figures for the aviation division are small no attempt is made to classify them as between the three aviation plants.

The educational order for Army cargo trucks on which deliveries started in June was manufactured coincidental with the production of civilian commercial units. Because of the smallness of the order and the fact that the same labor force produced both Army and civilian units, it would be difficult to segregate for statistical purposes the exact number of men engaged in such defense production. Accordingly, no attempt is made in the above table to make such a segregation.

Future labor requirements for defense and civilian purposes necessarily depend upon several factors:

1. Any variation of future aviation engine production from schedules called for by present plans.

2. The extent to which production of passenger cars and commercial vehicles for civilian consumption may be further curtailed by reductions in the present tentative quotas established by the Office of Production Management.

3. The extent to which Army cargo trucks may be produced beyond the quantities called for in the orders we now have.

4. The amount of labor necessary to produce additional defense production now under consideration.

These questions cannot be resolved for the purpose of making accurate estimates at this time and we can, therefore, only submit estimates based on present plans.

In considering these and subsequent figures, it should be noted that it is probably not practicable to transfer any appreciable number of our labor force from the South Bend plants to defense activities in Chicago and Fort Wayne.

Our present plans call for eventual defense employment of hourly workers in our aviation division as follows: South Bend, 4,500; Chicago, 4,000; Fort Wayne, 1,400.

This employment will be built up gradually from now until May 1942, at which time we should reach the maximum employment called for by present plans. Tentative quotas have been established by the Office of Production Management for Studebaker passenger-car production, by months, through July of 1942. If these quotas are adhered to, employment in our South Bend passenger_car division should decrease to a labor force of approximately 3,900 workers by July of next year. Our truck division now employs approximately 1,500 men and this force should be maintained at this level if additional Army truck orders are received, or if the production of civilian commercial units is not sharply curtailed in the future.

These figures on our requirements of hourly rate workers will be increased if Studebaker receives orders for additional defense work.

This long-range estimate indicates that over a period of time Studebaker should be in a position to absorb labor lay-offs due to decreased passenger-car production into its defense activities. This is not so certain during the interim before large-scale employment gets under way in the aviation division, but if additional defense projects on which we are now working should materialize into actual production, there should be no material temporary unemployment among the Studebaker labor force.

The Los Angeles assembly plant is in approximately the same position. Curtailment in passenger-car production will necessarily result in reduced labor requirements in those plants. Subcontracting work appropriate to the facilities of the Los Angeles plant, however, is under serious consideration and if work of this kind is obtained, it seems very probable that no serious lay-off problem should occur.

2. Hires.-Hires in South Bend, Los Angeles, and the Aviation Division have been as follows during the past year.

The hires in September 1940 resulted from increasing our labor force to build up production following the August shut-down for new-model change-over purposes. The increase in the labor force in the first part of 1941 also was necessitated by increased production during that period.

As stated above, it is difficult to classify hires for the passenger car and truck divisions as between men engaged for defense and nondefense activities. How

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ever, the number of men hired for strictly defense work was small during that period.

Transfers from the automotive division in South Bend to the aviation-engine division in South Bend have been small during the period because of the lack of demand for such workers from the latter division. Total transfers to September 10 amounted to but 47 workers.

3. Composition of labor force.-We regret that we cannot submit any recent study as to the composition of our labor force. Studies have been made from time to time covering the various points raised on matters in which the committee is interested, but these are not sufficiently recent to be of present value.

Summary. Studebaker believes that by a careful handling of its labor force and its future production schedule it will not be faced with the prospect of having a substantial number of men laid off as a result of the curtailment in passengercar production. Such a problem should not arise if passenger-car production is not decreased below the quotas now established for the 1942 model year.

The corporation feels that through a conscientious and careful effort it has to a fair extent anticipated this problem and provided methods of meeting it in such a way that no substantial amount of unemployment should result.

EXHIBIT 46.-EFFECT OF CUT IN AUTOMOTIVE OUTPUT ON GLASS INDUSTRY (A)

REPORT BY H. H. BAKER, VICE PRESIDENT, LIBBEY-OWENS-FORD GLASS co.,

On the relation of employment in the plate-glass industry to employment in the automobile industry, based on the statistical record of the last 5 years: (These figures cover our total employment; however, Shreveport and Parkersburg have very little to do with the manufacture of glass for the automotive industry.)

A tabulation for the last 12 months, giving monthly employment in each of our plants and indicating what proportion of employment in each plant may be allocated to employment for the automobile industry is attached.

This distribution, showing the allocation of employees to the automobile industry, is necessarily an arbitrary distribution, in cases where the plant is not wholly concerned with the production of glass for the automobile trade. However, it represents our best judgment.

A forecast of employment in each of these plants extended as much as possible, taking into account the recently announced cut in automobile production, follows:

The main production facilities of the flat glass industry, and of Libbey-OwensFord Glass Co. in particular, are not easily adjusted to defense production, except as it involves the production of glass products. At the present time we are manufacturing glass for airplanes, tank mirrors, periscope lenses, searchlight segments, porthole lights, glass for cantonments, mirrors for cantonments, observation towers, gas-mask lenses, screens for fluoroescent lighting, etc.

We are at the present time exploring the possibility with the airplane manufacturers for the probable assembly of canopies. We are also exploring the possibility of additional machine-shop work, to absorb what may be excess capacity. It is practically impossible at this time to estimate the number of employees that might be involved in such work.

Libbey-Owens-Ford Glass Co. employment data, September 1940 through August 1941

INDUSTRY (B)

REPORT BY LELAND HAZARD, GENERAL COUNSEL, PITTSBURGH PLATE GLASS CO., PITTSBURGH, PA.

SEPTEMBER 16, 1941.

This company operates six flat glass plants-three producing plate glass and three producing sheet (window) glass; both polished plate glass and sheet glass are used to produce laminated safety glass for automotive vehicles.

A recapitulation for all flat glass plants will show that a of total of 7,839 employees, 49 percent, or 3,858 are engaged in production of glass for automotive vehicles, and that the number of these employees will decrease in direct proportion to the decrease in production of automotive vehicles.

Attached is a chart showing comparison of employment in the automotive industry and employment in the flat glass division of Pittsburgh Plate Glass Co. for the years 1936 to 1940, both inclusive. This chart constitutes graphic evidence that unemployment in the flat glass division of Pittsburgh Plate Glass Co. bears a direct relationship to reduction in automotive production.

The following tabulation will indicate the extent to which facilities of this company are now engaged or may be engaged in direct defense work.

We regard the flat glass industry as an essential industry. Glass products are going directly and indirectly into the national-defense program. A partial list of the uses includes airplanes, naval vessels, military trucks and motorized equipment, optical glass, gas masks, glazing for airports and hangars, glazing for factories producing military supplies, glazing for Army cantonments and defense housing, glazing for transportation equipment, etc. Despite the foregoing, the fact remains that a total curtailment of automotive production would directly and indirectly dislocate approximately 4,000 of this company's employees; a 50 percent reduction in automotive production will dislocate approximately 2,000 of this company's employees. The number dislocated at any intermediate point can be readily determined. At a number of plant locations this company provides practically the only source of employment, with the result that suspension of operations would seriously disrupt the local economy.

Concerning the extent to which the glass industry in general, and this company in particular, is adaptable to defense production and a forecast for the next 12 months in that regard, we regret to state that so far as we know, plant equipment for the production of flat glass is not convertible to other uses, either military or nonmilitary. In modern production of flat glass a continuous tank operation is involved. The molten glass flows from a continuously operated tank onto and through annealing lehrs designed, in the case of plate glass, to produce a rough rolled glass, and in the case of sheet glass, to produce a firefinished product. To produce polished plate glass the rough rolled glass is passed to grinding and polishing tables, where the final finished surface is produced by abrasive and polishing wheels.

This company is devoting intensive efforts in research, development, and technical application of glass products to defense purposes, and is making every effort to cooperate in every way with the defense program. The fact remains, however, that there are inherent limitations in the equipment essential to the production of flat glass which probably preclude any conversion of that equipment to other defense purposes.

Pittsburgh Plate Glass Co.

RECAPITULATION, ALL FLAT-GLASS PLANTS

[Record of actual average employment for 12 months ended Aug. 31, 1941, and forecast of unemployment incident to proposed curtailment of automotive production 1]

The employment figures above and in tables following reflect full-day continuous employment per man.