REF ID:A68445\\~ '=°-\~ 

Contribution ot Signal. lntell1Cmce 

Toward Victory in World Wai• II ---a.rd Its Relatively Small Cost ... -____ ........ ___ .. __ _ 

~~ ~"'\ ~\'\'S.~ 

~'f;-'(:-/<e..~ 

1. •• The Hearings held by and the Repol"ts ot th9 Joint Cone;ressional 

Cm:mittea on t.'le !nYeatigation of th.a Pearl Harbor Attack &:'G replete with 

:reterences to tm nature and valuo or the largo anount ot 111.gnal 1ntau1 .. ielC& prod.uced by the cr,yptanalytic services or the Amy am the Navy betore 

the attack. The testJ.mony or all tie iln.portant. aai high-ranld.na witnesses 

lead the Majority to oharaoterize in their report (p. 25.3) tha signal 1ntoll1-

gonce as 11 some of tho .1lnost intelligence available in our history." An 

eiccelle.nt 8UJ11111ary atatEment appears on P• 2)2 ot th.a &8.l!le reports 

"The aucoess achievod. in rdading tho Japanese di}?!omat.ie codes 

merits tlie ~hes'E cor.rr.aiifat:f m iii! BII vltriesae9 laiill!ir-Wi'""'f.li'-

o ma orI tfiro· fbu'£ 'f.Fie war hive testn'ield 'Efiiit Iffcontabuted 

e o ea o'f' the enemy • • ~~t& : s§<!!:!~"id £he liir, • · us • o Yes. n 

-- b,, Perb:lp!!I the moat valuable testimQI11' as to tho value ot the aignal 

intelligence produced by the Amy and the Navy before and during World War II 

is found in tho lstter wich Omeral ~.arshall,, Chief ot St::itt, vrote to Mr. 

Devey on 27 Se;itmber 191'4. 

o. The p?"esant Direotor ot Intalli&anca, woos, who aeI"ldd throu~ .... out the 'lfal" 1n tho Pacific as 0-) on Ocneral MacArthur•s stat.t, has recmt.17 

•tatcd1 

11The intorma tion 0-2 gave 0-3 in the Pac1tio Theater alone aaYed 

us many thousan.ls o:r lives and shortened the war b;y" z:?o less than two 

years.• 

2. Aaeunline the lut ata.temnt valid• am vith the knowledge that. the 

information oo which retercoce was made consisted alm.ost exclusivol:y oi •trii 1ntell1e!_~e,, it tolla.ts that the operations and results produood b7 

our iZiil"1iiti!I'fience ager.teies shortened tho var by no leas t!un two year:J. 

A ;rough clllouJ.ation may theretore be •de as to tho JCOnatar;y val.ue or signal. 

1nteJ.11genoe by comparing the oost or producing that intelligence with the 

cost or maintaining a fightini amy tor two years. It vill bo warranted to 

sol.eot tho last two years ot the war as a basis for calculation. 

3. a. Cash spent tor opera ti.ens or .jignal !3ecur1 ty AIJ,f.JI1C1' ~ washinctonz 

Declassified and approved for release by NSA on 06-16-2014 pursuant to E.O. 1352e----= =- • 
REF ID:A68445 

b. !atima.ted coat ot pl.)" and all.011a.noea tor milita.17 personnel at 

Signal Security Agenoy1 WMhUJctoni 

rr. l94S----------------·--~-·--~----4 5,,24,626 rt 1946------....... --... --.. --.., .. -_.., __ .., ____ M ),337,4~4 

Total tor both yea.rs ·-···--M·-·---·$ 6,852•120 

a. Cost ot plant,, Arlington Hall station* 

Original real estate -------~---"·~--$ 65<>,ooo Furm.shinge with purchase .... _ .. ___ ,.._ 40~000 

Hew constr-u.otion ···-----~---------· •• 560i~ 

~o deduction is mde tor normal deprebiatlon. 

d. Cost or 1n1pplies and services (•stimte) 1 

Requisitions through Supply - .. -........ 4 2.500,000 

Branch 

C~micationa eervioe fctr ................. ~ ••. 000_,000 

.,.o ;,years 

Total cost --------------~--------~ 4,Soo,ooo 

•• Estimated. oo•t of overseas operations 

tor two years at t2.soo,oco par rear - tS,000,000 

~api~~~t~ . 

a ------~~w··-~·--~--·-·-~·-···~'423,947,JSS 

b ....... ¥·--~--~----~-~-----------"- 8,862.120 

o ~---~-~·~· ..... ---·~--~~---~--~·-- 6,2So,oco d "----~---.......... ~---~ ..... ~---~-~----·~ 4,Soo,ooo • -~----~~-~~~-•-~w-~~-~~---~---~ s,000.000 - ...•. 

Total cost tor tvu ;years ·-~·---------~46 5)9 478 

4. Since it 1• d1tticUlt to state how nauch ot thlt 00)1.!NT provided 

overseas commania n.e produoed by the Army and how much by the :Nav.,v, it will 

be assumed that both Services cont.ributed equall;y in this regard. Also, it 

ie assumed that the cost. ot operating tho Navy COHDIT s8I"'licct wait approx• 

imte'.17 th"! same as th:lt of thet Anq, that 1e1 approxtmatel;y t48,$S9,,478. 

Calling it tS0,000,000 for each service, tho totll cost wae tioo,000,000. 

S. Tho to"11. appropriations tor- tho tllO Services tor the FY 194~ and 

1946 were as i'ollovar 

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REF ID:A68445 

~or secr£:=r 

Axm7 l94S..----------~-"·------~------~1S.43S,CXX>,OOO Jrav 194.S-~------...... -........ _ .. _ ........................ 29_.493,000,r ... oo 

Anrrr l.946----------------·----··-... --·- 21,491,000.000 R&Y7191J6......~-~~--..... ·~~---~--~-~--···--.2~,477LC!JOA0!1!l 

Total. ----·--·--M·--------·--··----...... ...,a91 902.ooo,ooo 

Approxim.t\tel7 ------~~----~-----~-·--· 90 000~000 000 

Add tor other quas1-~111tarr 

tu.nctior~ carried on .tor 

act1v1t1.,a directly connected 

with the war---------~-·-----------·-ll0 ,,._ . ooo,ooo . . .... ooo " 

6. Ratio of total coat o! COMDJT SerVices to tota.l cost ot war tor 

two year•t 

'l'hat 181 one dollar .spent CO!!INT-vJ.se is worth One thoWta!ld apont. otherwise. 

l 

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