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INTER COMPANY COMMUNICATION A D D R E S S A L L C O M M U N IC A T IO N S T O T H E C O M P A N Y District Managers San Francisco_________ _______ April 1,______ i94_2 Subject: Necessity Certificates R E F E R T O T H IS S U B J E C T IN Y O U R R E P L Y C O N F IN E E A C H L E T T E R T O O N E S U B J E C T This memorandum principally is directed at the Managers in Oregon, Washington and California,for the Managers of the Texas properties appear fully to recognize the importance of the advantages that accrue to a taxpayer that has had expenditures charged to capital necessary in the interest of war effort, covered hy "Neces­sity Certificates”. During the past twenty months all of the companies have spent greatly in excess of normal on plant extensions and plant enlargements. All our properties are so located that it seems cer­tain that these exceptional capital outlays were made because of direct or indirect war effort activities. If any Army or Navy officer of authority, whether he be in charge of a local post or in a procurement office or a constructing quartermaster’s headquarters or a corps area signal office or an interceptor command, can be prevailed upon to recognize in writing that a capital expenditure already made or being made or contemplated is of assistance to war effort or is necessary because of direct or indirect war activities, we probably can obtain a necessity certificate covering that project. As an example of the type of letter required, a copy of one already ob­tained is attached hereto. The first application for a necessity certificate covering a project can be very preliminary, but if such an application is timely