103 (a) and 203 (a) of this Act for subsequent quarters shall be made as promptly as possible after the close of the second quarter preceding the quarter for which such quotas are determined.

SEC. 402. Notwithstanding any other provision of this Act, the Secretary of Interior may, in his discretion, establish classifications of manufactured lead articles and manufactured zinc articles, which classifications may but need not be the same as classifications established under the Tariff Act of 1930, as amended, and, in lieu of establishing a separate quota for each manufactured lead article or each manufactured zinc article within a classification, establish a single quota for all articles within such classification.

SEC. 403. The quotas provided in this Act as determined by the Secretary of Interior shall be administered by the Secretary of the Treasury.

SEC. 404. The Secretary of Interior and the Secretary of the Treasury are authorized to make such rules and regulations as may be necessary to carry out the provisions of this Act.

SEC. 405. Any person who knowingly violates any provision of this Act or any rule or regulation of the Secretary of Interior or the Secretary of the Treasury issued under this Act shall be fined not more than $ or imprisoned SEC. 406. The quotas provided for by Proclamation Numbered 3257 of September 22, 1958, shall be discontinued on the date that quotas established by this Act become effective.

for not more than

or both.

Mr. ASPINALL. Mr. Chairman, I have just stated that we do not have jurisdiction over this legislation, although we do have jurisdiction in our oversight responsibilities as to conditions surrounding the industry.

I wish to advise that under date of June 10, 1963, I received a statement in the form of a copy of a letter from Leo H. Irwin, chief counsel of the Committee on Ways and Means of the House of Representatives, in which he has stated that they had as of that date requested reports on this legislation from the Department of State, Department of Treasury, Department of Interior, Department of Commerce, Department of Labor, and the Tariff Commission.

In the communication, which was addressed to Mr. Ullman, a former member of this committee, now a member of the Committee on Ways and Means, there is a statement, "If you desire any comments of any other Government departments and will so advise I shall be glad to see that they are obtained."

Mr. Ullman, of course, phoned me immediately after receipt of this communication, which referred to his companion bill H.R. 6857, and asked if there were any other departments from which we wished to make requests. As the testimony is given here we can decide if there are any departments that have been overlooked.

But I did want the members of the industry to know that we will have in Congress for the use of the committee requesting the reports and for the use of this committee reports on this legislation, so that we can be brought up to date on the present position of the different departments of this administration with respect to the legislation.

Mr. EDMONDSON. We have several Members of the Congress who are interested in making brief statements in connection with the status of the industry, and I would like to give them the opportunity at this time to do so.

The distinguished member of the committee from the State of Idaho, the Honorable Compton White.

Mr. White.

STATEMENT OF HON. COMPTON I. WHITE, JR., A REPRESENTATIVE IN CONGRESS FROM THE FIRST CONGRESSIONAL DISTRICT OF THE STATE OF IDAHO

Mr. WHITE. Thank you, Mr. Chairman.

Mr. Chairman, long before my election to Congress I held the desire that I would like to appear before this subcommittee on behalf of the lead-zinc mining industry. I am grateful now for this opportunity to speak to you concerning the need for congressional consideration of the chronically depressed economic condition of lead and zinc mining. It is particularly fortunate that this opportunity so closely. coincides with the introduction of the most significant and potentially helpful lead-zinc legislation in many years, H.R. 6269 and identical bills.

Since the statistical and historical need for this legislation will be pointed out in detail by subsequent witnesses, I will refer only generally to the national lead-zinc problem and concentrate on that segment of the industry located in my congressional district.

I have been most impressed in my study of the lead-zinc problem by the completeness and consistency of the facts and figures complied by the mining industry. These thorough studies by the industry, of world production, domestic consumption and the lead-zinc market have been prompted by two factors; declining prices and a rather unsympathetic and uncooperative government. The leveling curve of domestic consumption has met with a series of governmental actions, prompted by the importing industry, that have made it more and more difficult for the domestic producers to continue operation. After eight trips to the Tariff Commission under the old escape clause, and eight recommendations for relief under it, the former administration provided only partial and momentary remedies through stockpiling and an inadequate quota system. The Trade Expansion Act of 1962, with its so-far impossible escape clause, has closed the door of Tariff Commission recommendations for relief. To an industry that supplied basic and strategic materials, these administrative and legislative actions appear inconsistent with the aim of providing a healthy climate for the growth of domestic economy.

Some relief has come through the emergency action of this subcommittee in formulating Public Law 87-347, the Small Producers Stabilization Act. A ray of hope exists in the proposals to more realistically tax the foreign-held subsidiaries which compete with domestic industry. However, the very hard facts of ever-increasing mine closures in the lead-zinc areas and the resulting unemployment point out the need for permanent and flexible solution to the dilemma of free trade versus healthy domestic industry. I believe that the flexible quota proposed by H.R. 6269 and identical bills is such a solution. The quota as outlined in this legislation would gear imports of lead and zinc to a reasonable price level for our miners and industry, and at the same tme, guarantee to foreign producers a fair share of our market. These bills avoid the odium of tariff raises and close many of the gaps in the present quota system. I sincerely believe that the study of the lead-zinc situation by this experienced subcommittee will be helpful to the Ways and Means Committee in its consideration of this necessary legislation.

LEAD-ZINC INDUSTRY IN IDAHO

It is incongruous that counties with one of the richest mineral de-
posits in the world, with the men and capital ready, willing, and able
to mine these metals should be designated one of the most depressed
areas in the Nation. That is the present situation in the northern
part of Idaho's First Congressional District. Just a dozen years
ago this region had over 110 lead-zinc mines flourishing, contributing
to the economy of Idaho and the Nation. Today there are little over
30 of these mines in operation and those are dependent for survival
upon the byproduction of silver. These far-from-exhausted mines
and workings are allowed to fill with water, while the men who
worked them lose hope of ever again finding employment in the in-
dustry in which they are skilled. The cold statistic of a 30-percent
reduction in employment would not be so hard to accept if the ore
deposits had run out, or if there were a nationwide lessening demand
for lead and zinc. It is not exhaustion of the ores or overproduction
that has turned the operator toward subsidies and the miner toward
unemployment compensation. Rather, it is the ever-increasing
amount of imports of these metals from abroad.

The lead-zinc mining industry of Idaho could absorb the rising
costs of labor, machinery, and technology if it did not have to so
overwhelmingly compete with ores produced at near slave wages
by companies qualifying for special tax considerations and in coun-
tries accepting American foreign aid.

It is no mystery to me that the instability of the industry created
an atmosphere for the past strengthening of a union which has been
designated as "Communist infiltrated" by the Subversive Control
Board, and the same area presently fosters some of the most extreme
rightwing groups. I believe that a study of the statistics below will
demonstrate that there is an economic cause for the growth of these
two extreme ideologies.

(The table entitled "Production of Lead and Zinc in Idaho"
follows:)

Mr. EDMONDSON. We also have another distinguished member of
the committee, the Honorable Laurence Burton of Utah, who has
asked to be heard by the committee.

Mr. BURTON. Mr. Chairman, with your permission I would like to reserve my time, because there are people here who have come a long way to be heard, and the committee has ample opportunity to hear me. Before yielding, however, I would like to say that I have heard the statement that has been prepared by my colleague from Idaho and compliment him on it. His feelings are my own, and the story of leadzinc production in Idaho almost identically parallels the situation in Utah.

During the last decade in Utah, I would like the record to just show at this point, we have had literally dozens of mines closed and we have lost thousands of jobs. What was once a fluorishing industry is now almost an expiring industry. I think the proper phrase to characterize it or the usual phrase at least, is to say that it has "one foot in the grave. It might be more accurate to say that all it has out

of the grave now is one foot.

I thank the chairman.

Mr. EDMONDSON. The distinguished gentleman from California, Mr. Johnson, a member of the committee will be heard at this point.

STATEMENT OF HON. HAROLD T. (BIZZ) JOHNSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA

Mr. JOHNSON. Mr. Chairman, as the author of H.R. 6277, the companion bill to H.R. 6269, introduced by our distinguished chairman of the full committee, Congressman Wayne Aspinall of Colorado, I would like to rise in support of this legislation and to make some comments concerning the lead and zinc situation as it relates specifically to my own State of California.

Deposits in California have yielded a total of nearly 491 million pounds of lead from 1877 through 1962. Although this output represents less than 1 percent of the total mine production of recoverable lead in the United States for the same period it still represents an industry important to the State of California. During the decade ending with 1962, the annual production of lead in California ranged from a low of 103 tons in 1961 to a high of 9,296 tons in 1956, far below the record high of 15,831 tons in 1950. Mines in Inyo County have been the principal sources of lead in California.

Most of the lead produced in California has been obtained from three districts, each of which is in Inyo County. These are (1) the Cerro Gordo district, about 13 miles east of Lone Pine and near the crest of the Inyo Range; (2) the Darwin district, about 35 miles southeast of Lone Pine; and (3) the Tecopa district, at the southern end of the Nopah Range in the southeastern corner of Inyo County.

Most of the rest of the lead that has been mined in California has been a byproduct of the copper and gold mines of the Sierran foothill and Klamath Mountains areas. Other areas that have yielded relatively small quantities of lead ore include the Clark Mountain district in the northeastern section of San Bernardino County, the Santa Rosa district in Orange County, and the northern Panamint Range in Inyo County.

Lead ores in California are mined by normal underground methods, as contrasted with some of the very large-scale room-and-pillar

ore.

methods used in mining the disseminated lead deposits of southeastern Missouri. At the Darwin mines, for example, most of the ore is mined in sublevel stopes. All mines in California have yieded ore of shipping grade, and small operators have had to depend on shipping-grade At the larger mines, however, the bulk of the ore has been milled. The Government has regulated the lead industry during emergencies, such as World War II, in an effort to provide adequate supplies of lead for all essential uses. The regulations placed in effect consisted of controls over prices, imports and exports, priorities and allocations, and inventories. In addition, various programs were undertaken to stimulate production of lead from domestic sources.

To point up the current situation in the State of California and the need for some relief on the part of the Federal Government for the lead producers in my State, I would like to submit the following statistics concerning the drastic declination concerning the lead production in recent years.

The zinc produced in California has been obtained largely from two sources: (1) mines in the desert regions of eastern California that are also sources of lead and silver, and (2) copper-bearing deposits of the Sierran foothill belt and Shasta County. Since the first recorded production of zinc in 1906, approximately half of the State's total output of about 228 million pounds was obtained during the periods of relatively high prices, especially during World Wars I and II and the Korean war. With less favorable price conditions, zinc production in the State has declined or stopped completely. In 1962, California production was estimated at 644,000 pounds.

The principal zinc-bearing deposits in California are confined largely to two metallogenic provinces. One is the copper-zinc belt which extends from Fresno County along the Sierran foothills to include districts in the Klamath Mountains of Shasta County. The other includes the lead-silver-zinc districts of the east-central portion of the State.

The Federal Government's plan for the use of premium payments to increase the output of strategic minerals during the war did give the zinc-mining industry a shot in the arm and zinc production rose from 16,390 pounds in 1939 to 19,340,732 pounds in 1945. The production of zinc in California exceeded a million pounds each year from 1942 through 1957. However, in recent years production has been extremely limited. Again, I would like to submit for your con