shortly ruin the zinc rollers and will directly injure the miners and smelters that everyone claims they are trying to help. With this much of a recitation of the problem and the steps we have gone through to try to meet the problem let me now present a capsule statement of our position: 1. When H. R. 8257 was introduced-a bill that would increase the duty on zinc concentrate, zinc in slab form and zinc rolled sheets-we did not oppose it. We did try to point out that it did not give compensatory treatment for some rolled zinc products. 2. When the Ways and Means Committee determined that it would be better for the lead and zinc industry to go the administrative route rather than the legislative route, we did not foresee the difficulties this would compound for the zinc rollers. We anticipated that if the lead and zinc industry filed a petition with the Tariff Commission for escape-clause action the Tariff Commission would review the facts and if they found that the zinc rollers had merit in their case they would recommend simultaneous and compensatory adjustments in the duties on rolled zinc products. 3. We have learned to our sorrow that the escape clause does not permit the Tariff Commission to recommend simultaneous and compensatory adjustment to a segment of an industry that is not then experiencing serious injury from imports. 4. When we learned that the Tariff Commission could not consider giving our products simultaneous treatment along with the basic zinc industry we searched out and found that article XXVIII, which had been cited by a representative of the State Department at a hearing before the House Ways and Means Committee, was a possible avenue of relief for us and that this avenue presumably would permit simultaneous and compensatory adjustment by executive action. We immediately therefore filed an application on November 22, 1957, or a little more than 4 months ago, requesting action under article XXVIII. To date we have not been able to get a precise statement as to what action will be taken to protect the zinc rollers if the duty on their raw materials should be increased and their cost should therefore be increased and they should be put at a greater disadvantage with foreign competitors. We have no doubt that other segments of other industries have been or will be placed in situations similar to the one that the present section 7 action on lead and zinc creates for the domestic zine rollers. Section 7 is denied them unless it be amended. Article XXVIII appears to be a possible answer, but as you gentlemen know, as article XXVII now stands, the United States never has used it for such purpose. We believe this refutes the oft-mentioned claim that the Trade Agreements Act does offer adequate safeguards for United States industry. This point should certainly be resolved before the act be extended for 5 years. We are making three specific recommendations. 1. Grant the Tariff Commission authority to examine related industries in escape-clause actions and to recommend simultaneous and compensatory action when the Commission finds that adjustments recommended under escape-clause procedures will injure related businesses that otherwise would have no escapeclause redress. 2. Amend article XXVIII to specifically provide for cases similar to ours and to spell out procedures, time required, etc. In 3. In the event it be determined to seek additional import protection for the domestic zinc mining industry by means of legislation, either by an amendment to the Trade Agreements Extension Act when that measure reaches the Senate or by special legislation at a later date, it is the desire of rolled zinc manufacturers to be included in any such legislation. This is important inasmuch as our products are manufactured almost 100 percent from the base metal. this connection, we would like to suggest a formula for determining the proper import duty on rolled zinc products. This would be a specific duty equivalent to the duty on slab metal plus 20 percent ad valorem. At present the duty on uncoated zinc sheets is 1 cent per pound which is equivalent to only 4 to 5 percent ad valorem; the duty on zinc wire is 11 percent ad valorem; and the duty on zine strip and zinc rod is 20 percent ad valorem (to be reduced to 19 percent after June 30, 1958). Even without any increase in duty on the basic zinc metal the existing duty on zinc sheets is entirely inadequate. Should the duty on the basic zinc metal be increased the present protection on the other rolled zinc products also would be entirely inadequate unless there are appropriate upward adjustments in the duties on these items. We shall be most grateful for your careful consideration of our problems and recommendations. TABLE I.-Showing prices, tariff rate, and percent tariff to price 1939–58, rolled zinc and raw materials Metal 4.15 cents per 14.50 cents per 10 cents per (?) price, (?) duty, Strip 9.25 cents per (?) price, (?) duty, Sheet 9.75 cents price, 15.50 cents per 23 cents per pound price, 1 cent per pound duty, 4.35 percent duty. 24 cents per pound 24 cents per pound 24 cents per pound (?) price, 1 cent duty, (?) percent duty. Following figures assume that Tariff Commission recommends and the President orders maximum increases in duties on zinc concentrates and metal and that these are effective June 30, 1958, and that no other factors are changed: Senator MALONE. We will stand in recess until 10 o'clock tomorrow morning. (Whereupon, at 4:35 p. m., the committee recessed to reconvene at 10 a. m. March 27, 1958.) LONG-RANGE PROGRAM FOR MINERALS INDUSTRY THURSDAY, MARCH 27, 1958 UNITED STATES SENATE, SUBCOMMITTEE ON MINERALS, MATERIALS, AND FUELS, OF THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Washington, D. C. The subcommittee met, pursuant to recess, at 10 a. m., in room 224, Senate Office Building, Hon. Frank Church presiding. Present: Senator Carroll. Also present: Senators Church and Allott. Staff members present: Robert W. Redwine, assistant counsel to the committee, and George B. Holderer, staff engineer. Senator CHURCH. The hearing will come to order. Mr. Redwine of the committee staff has some introductory remarks to make this morning. Mr. REDWINE. Mr. Chairman, there was considerable discussion yesterday afternoon on S. 3537. Inadvertently, I failed to ask permission for that to go in the transcript. I would like at this time to ask permission for it to appear in the printed record at the proper place. Senator CHURCH. Permission is granted. Mr. REDWINE. Mr. Chairman, during the day there will be a witness who will testify in respect to S. 3199, which our chairman introduced, and S. 3315. May those two bills appear in the transcript at this time? Senator CHURCH. Yes; the two bills will appear separately in the transcript. Mr. REDWINE. Mr. Chairman, I understand that the chairman is proposing an amendment in respect to these two bills. Senator CHURCH. Yes. Actually, the Senate bill 3315 was introduced on February 19 by Mr. Bible and by Mr. Murray of this committee, and S. 3199 was introduced by me on January 27, 1958. S. 3315 provides for a moratorium in the assessment work on unpatented mining claims of 1 year, and S. 3199 provides that the date for the assessment work should be changed from the 1st day of July until the 15th day of August. Subsequently, that date has been changed to the 1st day of October, and, as changed, I would like to amend S. 3315 by adding this provision in the form of an amendment so that the two bills can be combined, and it is my understanding that this has been the concept and has been agreed to by both Mr. Bible and Mr. Murray. Mr. REDWINE. That is my understanding, Mr. Chairman. Senator CHURCH. So the text of the original two bills and the revised text of the amendment to be added to S. 3315 should all be included in the record at this point. (The bills and the amendment referred to are as follows:) [S. 3199, 85th Cong., 2d sess.] A BILL To amend section 2324 of the Revised Statutes, as amended, to change the period for doing annual assessment work on unpatented mineral claims so that it will run from August 15 of one year to August 15 of the succeeding year, and to make such change effective with respect to the assessment work year commencing in 1959 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2324 of the Revised Statutes, as amended (30 U. S. C. 28), is amended by striking out "1st day of July” and inserting in lieu thereof "15th day of August". SEC. 2. Notwithstanding the amendment made by the first section of this Act, the period commencing in 1957 for the performance of annual assessment work under section 2324 of the Revised Statutes, as amended, shall end at 12 o'clock meridian on the 1st day of July, 1958, and the period commencing in 1958 for the performance of such annual assessment work shall commence at 12 o'clock meridian on the 1st day of July, 1958, and shall continue to 12 o'clock meridian on August 15, 1959. [S. 3315, 85th Cong., 2d sess.] A BILL To provide for the suspension of annual assessment work for the year ending July 1, 1958, with respect to mining claims held by location in the United States, including the Territory of Alaska Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the provision of section 2324 of the Revised Statutes of the United States which requires that on each mining claim located after May 10, 1872, and until a patent has been issued therefor, not less than $100 of labor shall be performed or improvements made during each year, shall be suspended as to any such mining claim during the year beginning at 12 o'clock meridian July 1, 1957, and ending at 12 o'clock meridian July 1, 1958, if the claimant of such mining claim shall file, or cause to be filed, in the office where the location notice or certificate is recorded, on or before 12 o'clock meridian July 1, 1958, a notice of his desire to hold such mining claim. Amendment intended to be proposed by Mr. Church to the bill (S. 3315) viz: At the end of line 2 after the enacting clause insert: "That section 2324 of the Revised Statutes, as amended (30 U. S. C. 28), is amended by striking out '1st day of July' and inserting in lieu thereof '1st day of October'. "SEC. 2. Notwithstanding the amendment made by the first section of this Act, the period commencing in 1957 for the performance of annual assessment work under section 2324 of the Revised Statutes, as amended, shall end at 12 o'clock meridian on the 1st day of July, 1958, and the period commencing in 1958 for the performance of such annual assessment work shall commence at 12 o'clock meridian on the 1st day of July, 1958, and shall continue to 12 o'clock meridian on the 1st day of October, 1959." On line 3, prior to the word "That", insert "section 3". Mr. REDWINE. Mr. Chairman, in respect to the matter just under discussion, we have in the committee files numerous letters, and it has been asked that they appear in the record. May we insert them in the printed record? Senator CHURCH. I would like that. I know that I myself have received a number of letters, and I think I referred them all to the committee. I would like to have them included in the record in support of the purpose of these two measures. (The communications referred to follow :) GENERAL MINES CORP., Spokane, Wash., March 3, 1958. Hon. FRANK CHURCH, Senate Office Building, Washington, D. C. DEAR SENATOR: The Wallace Miner indicates that you have introduced in Congress a bill to suspend mine assessment work for 1958 on unpatented mining claims. We are heartily in favor of this bill, and also for changing the period to start assessment work on claims from July 1 to August 15. This would be a great help for those who have holdings in the interior of Idaho. The facts are my associates have holdings in the extreme eastern part of Shoshone County, Idaho, 35 miles south of Superior, Mont. Last year the snow on the road was 12 feet deep on July 10. To be on the premises necessitated using snowshoes. It has been difficult for us to raise funds through the sale of stock, and it would be necessary to levy an assessment which would impair the investment for the share owners who would be unable to pay. Some of our directors terminated their residence in Idaho several years ago, but have extensive property holdings in Idaho. We wish you success in your efforts to help us in our mining activities. H. G. Loop, President. GENERAL MINES CORP., Spokane, Wash., March 11, 1958. Senator FRANK CHURCH, Senate Office Building, Washington, D. C. DEAR SENATOR CHURCH: Reports from Washington, D. C. indicate that you are sponsoring a bill which you have introduced in Congress to suspend assessment work for the year ending July 1, 1958, on unpatented mining claims, and another bill to change the period for doing assessment work from July 1 to August 15 of each year. We are greatly in favor of this legislation, and hope you succeed in your efforts in having your bills passed. It would be a great help to us at this time when our funds are exhausted. To raise funds through the sale of stock is impossible at present. If an assessment was levied many share owners would be unable to meet their obligation and lose their holdings. My investments in industries and mining are all in Idaho of which State the writer has been a citizen for the past 35 years. Wishing you success in your effort to help us in our mining activities. Very truly yours, Hon. FRANK CHURCH, United States Senator from Idaho, C. ROHOLT, Vice President. AMERICAN URANIUM CORP., Albuquerque, N. Mex., March 4, 1958. Senate Office Building, Washington, D. C. DEAR SENATOR CHURCH: I want to express my appreciation to you for cosponsoring the bill introduced by Senator Bible for suspending for 1 year the requirements that owners of mining claims do $100 worth of labor on each claim. As president of American Uranium Corp. and Colorado Mines & Metals Co., who own mining claims in New Mexico, Colorado, Arizona, and Utah, we are very much interested in the passing of this bill as our companies have been hard hit with the low price of copper, lead, and zinc, and the bad position the uranium market is in. With high esteem, I remain, Yours very truly, E. T. CHASE, President. |