(b) Shortage of facilities for the production of materials or services required for national defense. In making such determination, consideration will be given to whether at the time of the construction, reconstruction, erection, installation or acquisition of the facility, there is an existing or prospective shortage of facili ties for the production of the materials or services which are to be produced by the facility sought to be certified. In such determination, consideration will be given to an over-all shortage, the necessity for and adequacy of facilities or materials or services for a particular region, the necessity for stand-by capacity, and other factors contributing to or threatening a shortage of facilities for producing such materials or services.

(c) Economic usefulness of the facility. In determining the portion of the facility attributable to defense purposes, consideration will be given to the probable economic usefulness of the facility for other than defense purposes after five years.

(d) Acquired facilities, replacements, and land. (1) Acquired facilities previously constituting the productive assets of a going concern, and second-hand facilities, will not be certified unless: (i) Clear prospect of a substantial increase in the usefulness of such facilities for national defense exists and such increase cannot be obtained by other practical means; or (ii) substantial loss of usefulness for national defense would probably result in the absence of such acquisition.

(2) Replacements will not be certified if they would have been made, at or about the time made, regardless of the emergency.

(3) Land will not be certified unless its acquisition is directly related to the production, storage, transportation or protection of supplies necessary in the interest of the national defense.

(e) Other considerations. In making such determination, guidance to the maximum extent will be obtained from the following additional considerations: (1) assurance of fair opportunity for participation by small business; (2) the promotion of competitive enterprise; (3) the competence, performance record, if any, and other factors bearing upon the ability of the applicant to manage effectively the proposed expanded facilities; (4) location of the facility with due regard to military security; (5) the availability of manpower, housing, community facilities, transportation, and other elements of production; and (6) methods of financing.

$ 600.3 Procedures and responsibilities.—(a) Application form. Formal application filed after the effective date of this part shall conform to the standard form prescribed by the certifying authority, and shall be executed in the manner and by the person prescribed by the form. The standard form of application for a Necessity Certificate with accompanying instructions may be obtained from the National Security Resources Board, Washington 25, D. C., or from the Department of Commerce or any of its field offices.

(b) Filing of application. All applications for Necessity Certificates filed under the terms of this part shall be filed with the National Security Resources Board in Washington, D. C., and shall be deemed to be filed when received at that Board. If the application or its filing would involve the disclosure of information which has a security classification, the applicant should check with the appropriate government agency with whom the applicant has classified contract relations for instruction or arrangements concerning the handling of such documents or data prior to the filing of such application with the National Security Resources Board.

(c) Time of filing application. (1) Applications for Necessity Certificates for facilities upon which construction, reconstruction, erection or installation is begun, or which are acquired, after September 23, 1950, must be filed within six (6) months after the begining of construction, reconstruction, erection or installation, or the date of acquisition of such facilities.

(2) Applications for Necessity Certificates for facilities upon which construction, reconstruction, erection or installation was begun or which were acquired on or before September 23, 1950, must be filed on or before March 23, 1951.

(d) Modification of filing requirements. The time and place for filing appli cations for Necessity Certificates may be changed by the certifying authority. Such change shall be effective upon publication in the Federal Register.

(e) Referral of application. Each application, after acknowledgement, will be referred to that agency or officer of the Government according to its respective assigned responsibilities pursuant to the Defense Production Act of 1950.

(f) Responsibilities of agencies and officers other than certifying authority. Delegate agencies and officers shall be responsible for making a report and recommendation for specific action to the certifying authority regarding each application. Such report and recommendation shall be based upon a thorough examination and investigation conducted by the delegate agency or officer or by other competent government agencies or officers.

(g) Action by the certifying authority. After consideration of relevant factors, including but not limited to the report and recommendation of the delegate agencies and officers, the certifying authority will make the appropriate decision regarding the application.

(h) Necessity Certificates. Upon issuance of a Necessity Certificate, it will be forwarded to the Commissioner of Internal Revenue and will constitute conclusive evidence of certification by the certifying authority that the facilities therein described are necessary in the interest of national defense to the extent certified. The certifying authority will not certify the accuracy of the cost of any facility or of any date relative to the construction, reconstruction, erection, installation, or acquisition thereof. It will be incumbent upon taxpayers electing to take the amortization deduction to establish to the satisfaction of the Commissioner of Internal Revenue the identities of the facilities, the costs thereof and the dates relative thereto.

(i) Further description after certification. Where after the completion of a construction, reconstruction, erection, installation or acquisition of an emergency facility, the taxpayer finds that the description or cost of any facility appearing in the Necessity Certificate materially varies from the actual description or cost of the facility, a statement may be filed by the taxpayer with the certifying authority setting forth the correct description or cost of the emergency facility actually constructed, reconstructed, erected, installed or acquired. A copy of the statement will be forwarded by the certifying authority to the Commissioner of Internal Revenue, provided the description or cost in the opinion of the certifying authority is within the scope of the original certification, and when so forwarded, the statement will have the effect of an amendment of the original certificate.

(j) Cancellation or amendment of Necessity Certificate. The certifying authority may (1) cancel any Necessity Certificate where it has been obtained by fraud or misrepresentation or has been issued through error or inadvertence, or (2) amend any Necessity Certificate for sufficient cause shown.

§ 600.4 Exercise of powers of certifying authority. Any actions taken in exercise of the powers and authority vested in the Chairman of the National Security Resources Board by E. O. 10172, October 12, 1950 (15 F. R. 6929) may be taken in the name of the National Security Resources Board, countersigned or attested by the Chairman's authorized representative.

§ 600.5 Amendment of this part. This part may be amended by the Chairman of the National Security Resources Board with the approval of the President.

W. STUART SYMINGTON,

Chairman, National Security Resources Board.
H. DEWAYNE KREAGER,

Secretary, National Security Resources Board.

Approved:

THE WHITE HOUSE.

HARRY S. TRUMAN.

EXHIBIT 46

APPLICATION FORM (NSRB-140) FOR TAX AMORTIZATION
NECESSITY CERTIFICATE

INSTRUCTIONS - Submit three (3) signed copies of the application and six (6) copies of the Appendix A. When a question is inapplicable, this should be so stated on the form. Additional sheets may be attached in answering any questions or in providing other supporting information. A separate set of forms is required for each plant location.

1. IDENTIFY THE MATERIALS AND SERVICES PRODUCED OR TO BE PRODUCED WITH FACILITIES, DESCRIBED IN APPEN DIX A, FOR WHICH CERTIFICATION IS SOUGHT. DO NOT USE GENERAL DESIGNATIONS SUCH AS AIRCRAFT PARTS OR "RADAR PARTS." IN THE CASE OF SERVICE FACILITIES SUCH AS CAFETERIAS, OFFICES, OR PLANT PROTECTION, LIST PRINCIPAL MATERIALS AND SERVICES OF THE PLANT FACILITY SERVED.

2. GIVE REASONS WHY THE FACILITIES FOR WHICH CERTIFICATION IS SOUGHT ARE NECESSARY IN THE INTEREST OF NATIONAL DEFENSE. THE APPLICANT SHOULD APPLY CAREFULLY THE CRITERIA FOR DETERMINATION OF NECESSITY AND OF PORTION ATTRIBUTABLE TO DEFENSE PURPOSES SET FORTH IN SEC. 600.2 OF THE REGULATION GOVERNING THE ISSUANCE OF NECESSITY CERTIFICATES PRESCRIBED BY THE CHAIRMAN OF THE NATIONAL SECURITY RESOURCES

BOARD.

5. PRODUCTION OR SERVICES BEGAN OR WILL BEGIN WITH THE FACILITIES SOUGHT TO BE CERTIFIED ON THE FOLLOWING DATE (ON GRADUALLY EXPANDING FACILITIES, GIVE SCHEDULE OF OUTPUT)

6. IF APPLICANT OWNS OR HAS AVAILABLE IDLE FACILITIES WHICH MAY SERVE CERTIFICATION IS SOUGHT, GIVE REASONS FOR NOT USING FOR SUCH PURPOSE

SAME PURPOSE AS THOSE FOR WHICH

7. CAN APPLICANT SUBCONTRACT FOR ALL OR PART OF THE MATERIALS OR SERVICES PRODUCED OR TO BE PRODUCED BY THE FACILITIES SOUGHT TO BE CERTIFIED?

IF YES, WHY DOESN'T APPLICANT SO SUBCONTRACT'

YES

NO

IF NO. WHY NOT?

FORM NSRB-140 (OCT 1950)

PAGE 3 OF 6 PAGES

8. OUTPUT OF FACILITIES SOUGHT TO BE CERTIFIED WILL BE USED FOR THE FOLLOWING PURPOSES

a. FOR THE FOLLOWING PRINCIPAL PRIME CONTRACTS WITH THE UNITED STATES GOVERNMENT

b. FOR THE FOLLOWING SUBCONTRACTS WITH U.S. GOVERNMENT PRIME CONTRACTORS

C. FOR THE FOLLOWING CLASSES OR TYPES OF CUSTOMERS OTHER THAN THE UNITED STATES OR ITS PRIME CONTRAC. TORS (WHEREVER POSSIBLE. ALSO INDICATE FINAL PRODUCT USE AND ITS RELATION TO NATIONAL DEFENSE PURPOSES)

9. ESTIMATE PERCENTAGE OF THE MAXIMUM DESIGNED PRODUCTION OF THE FACILITIES SOUGHT TO BE CERTIFIED WHICH WILL BE USED FOR NATIONAL DEFENSE PURPOSES (EXPLAIN BASIS FOR ESTIMATE )

10. HAS APPLICANT NEGOTIATED WITH AGENCIES OF THE GOVERNMENT AS TO FINANCING THE COST OF THE FACILITIES FOR WHICH CERTIFICATION IS SOUGHT?