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Gentlemen,
larch 29, 19hh
The following audit and other matters have received our attention in
the last two days:
1. Completed examination of cancelled checks, and deposits,
and reconciled the bank accounts right through February
29, 19**« Balances were checked against independent confirmations
from the respective banks.
2. Bade substantial test-checks of officially pre-numbered
reoeiving end payment vouohers together with supporting
documents. There were no discrepancies.
3. Examined 19*1^ transactions to date to determine accruals
affecting the year 19^3.
*». Discussed with Mr. Bein, matter of the existence of contingent
liabilities and assets. Mr. Bein advised that there
are no law suits pending against Dorsa and that Dorsa has
no suits pending against others; that no land or other
purchase contracts have been executed by Dorsa; there are
no labor contracts outstanding; and no conveyances of Dorsa
property have as yet been made to homesteaders or others.
Mr. Bein signed our regular contingent asset and liability
statement without noting any exceptions. In connection with
the matter of property conveyances, Mr. Bein stated that he
had discussed this matter with Dr. Hexter and others during
his last visit to New York but because of the many complicated
factors involved, no final deoision could be reached
at that time.
5. To date, several of the independent confirmations have been
signed by homesteaders and others, acknowledging Dorsa properties
in their possession which have been charged to their
individual aocounte. Before leaving here next week, expect
to have most of these confirmations. The confirmations are
in lieu of physical inventories whioh would have had to be
made by Dorsa.
6. Independent confirmations have also been requested on socalled
short term loans receivable from homesteaders and
others. Such loans in the most part are repayable out of
homesteaders 1 inoome or other sources, over a period of from
k to 12 months. However, loans for the purchase of cows
are repayable over a period of 2 to q- years. Formal repayment
agreements have been signed by borrowers.
7. Have examined the detailed schedule of loans to homesteaders
and others, the aggregate of which agrees with the oontrol
account in th° general ledger. The provision for possible
losses on loans to Batey people was reviewec and discussed

"DORA" rmO L'-TT^l •;? -2- h&roh ?'?, 19W
with Kr, Bein. By previous official decision no provisions
for possible losses have been t'.ade for loans
to homesteaders and industrialists.
«. Discussed with Mr, Bein the possibility of breaking down
our statement of expenditures for the year 19^3 to show
separately the transactions of the Batey Administration
and General Administration. w"e have come to the conclusion
that this would be an extremely difficult job and that as
far as Mr. Bein understands, the Reparation does not go
into effect until Aoril 1st, 1$W anyhow. Aooorpingly
this statement will be presented for the year 19^3 as
heretofore.
(Signed) Joseph A. Loewenstein
J AT: ea

00 •'• Y
"DOftSA" riILP yCTTIR #g
Gentlemen,
Sosua
March 29, 19UU
The following audit and other matters have received our attention in
the lest two days:
1. Completed examination of oancelled cbeoks, and deposits,
and reconciled the bank accounts right through February
29 f i9hh. Balances were checked against independent confirmations
from the respective banks.
2. X'ade substantial test-checks of officially pre-numbered
receiving and payment vouchers together with supporting
documents. There were no discrepancies.
"*. examined 19^ transactions to date to determine accruals
affecting the year 19^3.
i». Discussed with Mr. Bein, matter of the existence of contingent
liabilities and assets, ler. Bein advised that there
are no law suite pending against Dorsa and that Dorsa has
no suits pending against others; that no land or other
purchase contracts have been executed by Dorsa; there are
no labor contracts outstanding; and no conveyances of Dorsa
property have a6 yet been made tc homesteaders ot others.
Mr. Bein signed our regular contingent asset and liability
Statement without noting any exceptions. In connection with
the matter of property conveyances, Mr. Bein stated that he
had disousped this matter with Dr. Hexter and others during
his last visit to New York but because of the many complicated
factors involved, nc final decision could be reached
at that tim«.
5. To date, several of the independent confirmations have been
signed by homesteaders and others, acknowledging Dorsa properties
in their possession which have been charged to their
individual accounts. Before leaving here next week, expect
tc have most of these confirmations. The confirmations are
in lieu of physical Inventories which would have had to be
made by Dorsa.
6. Independent confirmations have also been requested on socalled
short term loans receivable from homesteaders and
others. Such loans In the most part are repayable out of
homesteaders• income or other sources, over a period of from
h to 12 months. However, loans for the purchase of cows
are repayable over a period of 2 to * years, formal repayment
agreements have been sicrned by borrowers.
7. Hav« examined the detailed schedule of loans to homesteaders
and others, the aggregate of which agrees with the oontrol
account in the general ledger. The provision for possible
losses on loans to Batoy people was reviewed and dlecussed

'"•mk* TT-;l.i}..lilJ2Ul2 ~ ? - March 29, 19M
with Mr. Bein. By previous official deoislon no provisions
for possible losses have been and* for loans
to homesteaders and industrialists.
.*. Discussed with ? r. B*in the possibility of breaking down
our statement of expenditures for the year 19M3 to show
eeparately the transactions of the Bat^y Administration
and General Administration. Is have come to the conclusion
that this would be en extremely difficult Jou and that as
far as Mr. Bein understands, the separation does not go
into effect until April 1st, 1944 anyhow. Accordingly
this statement will be presented for the year 19^3 as
heretofore.
(Signed) Joseph A. Loewensteln
TAL;8a

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"DORSA" gjgjjg l 8, TT y i fc3
So sua, March 31, 1941*.
Accomplished the following in the past 2 days:
1. Examined insuranoe policies and checked saiae against independent
confirmations received from the insuranoe brokers.
Dorsa is oovered by Lloyds of London for fire, cash In
transit, public liability, automobile liability and property
damage. Workmen's compensation insuranoe 1B covered by a
Dominican insuranoe company. Fidelity Insurance for Dominican
and New York employees has not yet been arranged for. We
undersiand that the entire insurance matter "Is "being studied
in New York and there is an inclination to transfer all
insurance matters to American companies.
2. We have made a substantial test-check of the payroll and have
obtained a detailed salary schedule for the entire year of
19^3 which we have re-checked and Is in agreement v-ith the
books and records. Have witnessed payroll, household, and
pocket money distributions and oheeked signatures against
the specimens on file, and against employees' oedulas (Dominican
government identification cards). There were no discrepancies.
Many of the signatures consist of (X) crosses, because of the
illiteracy situation.
3. Examined the new Homestead agreements, signed by very recent
Homesteaders, covering oonditions and regulations of their
Homestead settlements. Previously, Homesteaders signed a
different form of agreement which is expected will be replaced
by the new ones.
h. "Examined the short and medium term repayment agreements signed
by Homesteader8 and others for loans repayaole out of current
inoome, pocket money or other souroes. The schedule of these
loans agrees with the control account in the general ledger.
5. Examined the schedule of payments to settlers' relatives for
the year 19 h 3 and found same in order. A total of a little
over $12,000. was spent by the Dorsa for SI settlers' relatives
for which the J.D.C. reimbursed Dorsa New York office. The
maintenance consists of food, hospitalization, medical supplies,
dental care, clothing and household articles, and payments for
residenoe permits.
6. Examined the budgetary oontrol system and procedures and found
same intelligently and comprehensively maintained, konthly
comparisons with actual experience are being made. Our formal
report will contain a summary of the 19^3 budget for the Dominican

M DP33A" TV LP feHUg yJ -2- March 31, 19^.
Republic activities only. Within the next day or so, we
plan to review the 1944 budget as prepared by Mr. Bein.
This budget will probably be subject to changes resulting
from the separation which goes into effect on April let,
I944.
7. Checked several of the general ledger account analyses
against the books and supporting documents.
S. Have already prepared several of the supporting schedules
for our formal 19^3 report.
Very truly yours,
(Signed) Joseph A. Loewenstein

"ppRBA" FIRLD jjrtym/f4-
Sosua, April ?nd, 1J44,
I have the following report for the past 2 days:
1. Examined journal vouchers and supporting documents covering
various year-end and other adjustments. All entries were
officially approved and satisfactorily explained.
2. Test-checked inventory schedules as of Deoeiioer ?1, 19 il 3 as to
priolngs and ooapariaicne with perpetual inventory cook figures.
Inventories were taken by Dorsa personnel, on Dec. ?lst, 19*3 •
of all eoulpment, supplies, rolling stock, iive-stoo*, etc.,
Witb th« exception of the equipment in settlers' a.nz guest
houses and administration buildings. Mr. Bein explained that
this inventory?as not taken then, because of the ponding
'separation' matter. However, this Inventory was taken on
March ?let, 1944, Normal shortages resulting from wear and
tear, etc., ar* indie ted. Book inventories were adjusted to
reflect, the actual physical inventory figures as of December
"'let, 1943. ?ith the exception of the equipment of the
communal kitchen and hospital, variances could be considered
normal, resulting from breakage, wear and tear and "expected"
reasons. The differences in the communal kitchen and hospital
mlstht be considered slightly above normal. Mr. Bein and the
persons ^:ho
took the inventory have ei«ned all of the inventory
sheets which will be checked oe to mathematical accuracy.
^ave made substantial spot-tests of material, supplies, etc.
in th^> various warehouses, commissary, etc All items tested
agreed with the ^roetual inventory records. In this connection,
invoices were tested against perpetual inventory records,
3. rede comprehensive tests of additions to capital sssste during
the ysar lf43 by reference to detailed vouchers, pay rolls, etc.
and by actual physical inspection of the assets.
U. Reviewed the detailed depreciation schedules with »,r. Bein; and
also discussed the adeouacy of the reserve for possible losses
against non-homesteaders' accounts. Both appear to be reasonable
5, Spent a considerable amount of time reviewing the statement of
income and expenditures for the year 1943 compared with the year
194? and from inception, Decemcer 1939, through December 194j.
Th*r» was a total reduction In expenditures in 1943 ot approximately
*70,000. (*21%000. in 19&3, against $2*5.000. in 1948s
an

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"fORSA" FlflP LETTER ifi 3osua, April 2nd, 19^4.
6. Doraa is the owner of 36 shares of a 120 issueu and outstanding
shares of the Cooperative Industrial Lechers, 0. per
A. Saoh share has a oar v*lue of : 10.00, Dorsa purohaeed
these shares in 19^2 for $360.00. During the year 1943, Dorsa
paid over an additional §540.00 (based on 36 shares at $15.00
per share) to the Cooperative, representing a so-called long
term loan, without interest. All other share-owners participated
likewise. I have physically exasined the 36 shares
which are all in the Sosua safe.
The Cooperative Industrial Leonera, C. per A. is a Dorsa
creation; is owned by 85 settler shareholders, and Dorsa is
owner of 36 shares. The Cooperative is successfully engaged
In the production of butter and cheese.
The following statistic may be of interest (year 19"3):
1,240,196 lbs. milk delivered by members QlJtQixjUl
4-1.161 lbs. butter sold »19,394.27
194,45a lbs. fresh milk sold 4,$?2.2S
by-oreducts ,?.741.80
total sales
>2o f o5S.3p-
Total profits
OJJMASS
Total dividends paid | 3.5S5.34
lbs. average dally production of Soaua cows
lbs. country average per day and cow.
I
7. ^orea operates a straw work shop, employing several Batey people.
Straw handbags, luncheon sets, etc. are mads and sold in Ciudad
TrujillQ and elsewhere. Rave examined the products which look
quite good. The industry holds excellent promise for the future,
The total oosts of operation for the year amounted to approximately
#2100.00 with sales of approximately $2,000.00, leaving
a very slleht loss which is considered quite an achievement.
ft. Attended a meeting of the Industrial and Batey people. The
principal speaker of this meetinsr was Dr. Walter 3aum. His
speech was lucid and frank. The reactions, on th* whole, seemed
patisfaotory. As you know Dr. Baum has become director of the
Batey Administration in which capacity he will attempt to make
th

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"DORSA" FIELD LETTER jg
April S, 1944.
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Accomplished the following within the past week;
1. Completed examination of account analyses, journal vouchers etc An
discretionary and other payments were approved by Messrs Arons and Bein.
2. Completed trial balanoe and work sheet of Sosua operations which T
consolidated with the New York transactions.
3. Completed our detailed audit report on a cumulative basis, through
S
December 31, 1943. (Reviewed with Mr. Bein). '
4. Completed Federal Income and Exoess Profits Tax Return for the year 1943.
5. Have forwarded under separate cover, via Registered Air Mail the
following:
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(a) A detailed typewritten audit report through
December 31, 1943.
(b) Pencil copy of the 1943 Federal Inoome Tax Return with
attached supporting data, together with our 1942 Return.
6. Counted and reconciled the #1,020.00 imprest funds in Ciudad.
The financial picture of the Dorsa from inception, December 1939 through
, December 31, 1943 may be summarized in the following manner; '
The total cash and other receipts available from the beginning of work in
the late Autumn of 1939, through the close of the year 1943, for the
preparation and development of settlement activities in Sosua, amounted
to #1,553,653.92 (including land and some buildings acquired from
Generalissimo Trujillo for #100,000 of Dorsa stock). On December 31 1947
Dorsa had a cash balanoe of $37,151.43.
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Therefore, Dorsa, for slightly over four years aotually expended a errand
total of $1,516,502.49. Of this, the sura of_$6g5,S95.33 represents
capital investments for establishing and developing the settlement. The
assets representing the same include land (acquired from Generalissimo
dormitories, offices, milking barns and farm structures, were erected.'
Non-recoverable expenses amounting to $g2S,947.51 were found necessary
by Dorsa in maintaining, educating and training settlers, hospitalization
sanitation, and all the many related incidentals required in initial work*
in building up a colony. On December 31, 19^3, Dorsa had other net
recoverable items, consisting mainly of accounts receivable, amountine to
$1,659.65.
Accordingly, as of December 31, 19^3, approximately 45$ of the expenditures
existed in assets represented by capital investments (at partially
depreciated values), and approximately 55$ was used for maintenance of
non-homesteaders and homesteaders, training, medical care, etc. It is

f. . • *
"DORSA" FIELD LETTER #5 -2- April g, 1944.
c
obvious that because of the almost complete termination of the building program
and the general curtailment of activities, that the ratio of nonreooverable
expenditures to oapital expenditures will steadily increase,
unless of course, more people can be helped to become self-sustaining. The
separation of the Batey group (non-homesteaders) under the leadership of
Dr. Baum, solve a difficult problem. Dr. Baum has good judgment and constructive
ideas.
The total expenditures (non-reooverable) for the year 19^3, approximated
$215,000 as compared with a little over $285,000 for the year 1942, a
decrease of $70,000 in 1943. Slightly over $12,000 was added to oapital
investments during the year 1943. (Our comparative balance sheet for the
years 1943 and 1942 will however indicate a decrease of about $9700 in
capital investments in 1943. This is due to the addition of $21,700 to
the Depreciation Reserves in 1943).
The other night, I attended a meeting of Homesteaders presided over by
Mr. Bein, It was well attended, orderly, and devoted to discussions of
ourrent problems of lively interest. There appeared to be a willingness
to cooperate. One of the topics was the matter of conveyances of homesteads
whioh question was raised by one of the homesteaders. Mr. Bein
explained that this was a rather difficult and complicated problem whioh
was discussed by him during his recent visit to the States, and that it
was still under consideration by officials in New York.
(*
Very truly yours,
(Signed) Joseph A. Loewenstein
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