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Ati “Memorandum for : Mr, EL, A. Tamm = 3 @ November 18, 1939 tt is pointed out that with respect to the financiu}) setup ef the Industriel Safety Committees, it ie estimated there are approximately 1200 plants in the Clevelund area which are potentizl members of the committee, which plants employ at least 150,000 men. On the basis of these conservative figures the committees would receive $150,000 a year. Inasmuch as it is intended that the actual investigations be conducted by mambers of the Cievelend Police Department, it appears thet the only expense to be incurred by the committee is the salery of Mr. Clothey, certain clerical and administrative expenses, and perhaps a small payment to the under- cover employees at each plant. It would appear, therefore, tinat the industrial concerns in the Clevelend area are to be assessed $150,000 a year merely to provide an agency to which information will be reported and then referred by that agency to the Cleveland Police Department which 1s already being maintained at public expense. The plans for the organization and operation of the Industrial Safety Committee are still in a preliminary stage but operations are already beginning according to the most recent information received from the Bureau office in Clevelend. . The objections to the operation of this Industrial Safety Committee are perhaps obvious but it is pointed out that in the first place they are in direct contradiction to the Presidential Prociam- tion issued on September 6, 1939, which requested all police organizations to refer matters relating to espionage and subotage directly to this Bureau. Any individual investigations conducted by this committee or any similar organization will naturally present the hazard of interfering with espionage and sabotage investigations being conducted by this Bureau on a nationwide scale. It is not difficult to imagine a situation where the Industrial Safety Committee through the Cleveland Police Department might conduct an investigation at an industrial plant in Cleveland which would Seriously iuoterfere with a widespread investigation being conducted by the Bureau and would resuit in undue publicity, It is also pointed out that the only actual function of the Industrial Committee, as such, is to receive and correlate reports as to sabotage and espionaze. This is strictly tue function of the Federal Bureau of Investigation and ig handlea by the Bureau without cost to the industrial plants, whereas the Industrial Safety Committee .is charging these plants a large amount of money for thé same service.