Mr. STEVENS. They receive the money directly in wages, and that also helps to operate my tribal store that we operate ourselves. We own it and operate it. They trade with us and it brings in a lot of money, and then we take it out and put it in the tribal fund, and, of course, we get a large amount of royalties from these mines, and that is what helps.

Senator CHURCH. It is both from the royalties and then from the trading that the Indians do in your tribal store?

Mr. STEVENS. That is right.

Senator CHURCH. Let me tell you how much I appreciate your coming. You have come a long distance and you have made a most eloquent plea on behalf of your people.

Mr. STEVENS. I thank you very much.

Senator CHURCH. Our next witness is Mr. Robert P. Porter, president of Porter Bros. Corp. of Boise, Idaho.

Mr. Porter, we certainly appreciate your coming that long distance, and we will be happy to hear any statement you care to make in regard to this very important matter.

STATEMENT OF ROBERT P. PORTER, PRESIDENT, PORTER BROS. CORP., BOISE, IDAHO

Mr. PORTER. Thank you, Senator Church.

As you said, I am Robert P. Porter, president of Porter Bros. Corp. of Boise, Idaho. This corporation has been mining domestic columbium-tantalum-bearing ores since 1955 and is at this time the principal producer of these materials on the North American Continent.

Most of the domestic placer and pegmatite deposits not only contain columbium-tantalum ores but also the crystals of euxenite and/or samarskite, monazite, ilmenite, garnet, magnetite, and zircon and/or a combination of the above-mentioned crystals.

Euxenite and/or samarskite when chemically refined contain the following metals: uranium, columbium, tantalum, thorium, titanium, and a heavy rare earth fraction including the yttrium group. In other words, when the domestic mines are operating, they are not only producing high-quality columbium and tantalum minerals but also other minerals associated with the nuclear age which are presently being imported into the United States from foreign sources.

Columbium and tantalum have been known for a century and a half, but only during the past few years have they assumed such an important place in the metallurgical field due to research and development in uses in the following fields: Turbine jets and jet engines, chemical processing equipment, medical equipment, electronics components such as parts for radar, radio and computers, guidance systems, high-temperature alloys, nuclear applications, rockets and missiles. Many of the byproducts will also come into use in the abovementioned fields.

Columbium-tantalum mining is predominantly a foreign industry. Nigeria, the Belgian Congo, Norway, Brazil, Australia, and the Malay States are the principal ore-producing countries while domestic output until 1956 consisted of intermittent and minor production from the States of South Dakota, Colorado, New Mexico, Maine, New Hampshire, and North Carolina. During the last few years the States of Idaho, Montana, and California have been included.

In 1956 domestic production increased seventeen-fold and will continue to increase if the domestic producers are placed in a comparable cost position with the low-cost foreign producers.

Columbium-tantalum ore imports into the United States: 1947, 2,760,000 pounds average; 1953, 5,770,000 pounds; 1956, 9,640,000 pounds; 1957, 3,350,000 pounds, estimated.

Domestic production of oxides: 1947-51, 1,361 pounds, average; 1953, 14,867 pounds; 1956, 212,606 pounds; 1957, 360,000 pounds, estimated.

One will note from these figures that the domestic production has gradually increased. Present production can be maintained and can be further increased due to the known deposits which have not come into production because of the uncertainty of the domestic market. The consumption of the ores for domestic industries was not measured until 1952 when 350 tons were used, while consumption in 1956 was 810 tons, showing a 130 percent increase. The future consumption of the two metals is expected by competent observers to be accelerated by an even greater percentage in the next few years due to additional research and discoveries made in characteristics and uses of the metals.

The United States Government, through the Defense Mobilization Procurement Agency in May 1952, had a stockpile program where both domestic and foreign materials were purchased and incentive bonuses were allowed to the producers.

The foreign part of this purchase program was discontinued in May 1955, and the domestic program may be discontinued June 30,

1958.

The price of concentrates before May 1952, remained steady from about $1.70 to $1.75 per pound contained pentoxides for materials of 50 percent or higher in oxides. Average price paid by the Defense Materials Procurement Agency was $3.40 per pound while the last known import price, in 1958, according to the Engineering and Mining Journal, was $1.15 to $1.20 per pound.

No import duties are presently in effect on foreign ores although duties are in effect on semifinished and finished goods. Subsidy payments are only a stopgap measure and do not encourage the producers to go into new or expanding mining ventures.

The columbium-tantalum minerals and their associated minerals are available in th United States, and production can be increased if a program is set up whereby the domestic mining industry can be assured of a reasonable share of the United States market. This can be accomplished by reducing the amount of foreign imports or by obtaining a tariff or quota program which would assure domestic producers a reasonable degree of continuity of operation.

These measures would put this country on a sound footing as far as strategic metals were concerned if a war should occur, or would prevent a foreign cartel being formed due to this country being a have-not Nation.

I cite here as a basis for my information the United States Department of the Interior, Bureau of Mines, Metal Market, Report 2652 Columbium-Tantalum, 1956; The Canadian Department of Mines and Technical Surveys, Memo Series No. 145, 1957; Engineering and Mining Journal, February 1958; and United States Tariff Commission, September 1957.

Thank you.

Senator CHURCH. Thank you, Mr. Porter. I think your statement has been very explanatory. Thank you again for coming.

The Chair wants to extend a cordial welcome to the junior Senator from Colorado.

Senator CARROLL. Thank you, Mr. Chairman.

May I ask, Mr. Chairman, if Mr. Palmer is to testify soon?

Senator CHURCH. Inasmuch as Senator Carroll has just arrived and has expressed an interest in hearing Mr. Robert S. Palmer of the Colorado Mining Association, the Chair would like at this time to call Mr. Robert S. Palmer.

Senator CARROLL. I thank the Chair. I have to attend another meeting. I appreciate it very much.

STATEMENT OF ROBERT S. PALMER, COLORADO MINING

ASSOCIATION

Mr. PALMER. Mr. Chairman and members of the committee, my name is Robert S. Palmer. I am the executive vice president of the Colorado Mining Association, which represents the mining industry of the State. We have members, however, in a great many of the other Western States, including the State of Idaho, and I would like to say that it is a great privilege for me to appear before this committee and the acting chairman, about whom I have heard a great many fine things from the mining people in Idaho.

Senator CHURCH. I appreciate that very much, and I want you to know that we are very happy to have you here this morning, Mr. Palmer.

Mr. PALMER. I don't believe that I have ever stated some of my qualifications to this committee.

Senator CHURCH. Why do you not state them for the record?

Mr. PALMER. I happen to be a graduate of the University of Colorado, with a couple of degrees. I have taken graduate work in geology at the university. During the war I completed war courses in mining and milling at the Colorado School of Mines. I have been a consultant to the Government, the Defense Minerals Production Administration, the House Committee on Small Business, and acted as a coordinator of mines for Colorado. Later I was selected as chairman of the hard minerals section of the American Bar Association, in which capacity I acted for 2 years.

Senator CHURCH. Are you also a lawyer, Mr. Palmer?

Mr. PALMER. That is correct. I have devoted much of my time to mining law.

I was elected to the Mineral Council of the American Bar Association. I have also served in that capacity with the Colorado Bar Association. I have acted as a trustee of the Rocky Mountain Mineral Law Institute. During the years I have had the opportunity of representing the mining industry I have had an opportunity to observe many of the activities of our Senators and Congressmen in Washington. I would like to state that it is my opinion that we are most fortunate in having a very fine, active and hard-working group of western Senators and Congressmen who have worked in unison for the good of the mining industry.

It is true that the mining industry has not always been successful in obtaining the relief that it has sought in the Nation's Capital, but

I have the feeling that that has not been due to any negligence on the part of any of the representatives of any of the mining States.

I would like to say that our organization is nonpolitical. It confines its activities primarily to mining and problems of the minerals industries, and in my experience in Washington I would like to say that I have never asked anyone at any time to favor anything that the mining industry sought on a political basis.

Here I would like to pay our respects to our two Senators from Colorado, Senator Gordon Allott, and Senator John Carroll, who is with us here this morning, and to point out that they have both presented factual statements concerning the condition not only of mining in Colorado but in other Western States to the proper committees, including this one, so that I shall not repeat that type of evidence here this morning.

Since arriving in Washington I have had the opportunity to examine a letter which has been sent by one of the executive departments to a Member of Congress. In that letter the inference is that the present deplorable condition of the mining industry is said to be due to two things:

One, a general worldwide recession, and, two, a curtailment of procurement of minerals for the stockpiling program.

It is my humble judgment that the situation which confronts the mining industry is far more serious than that, far deeper than that, and, for that reason, I would like to take a few minutes of the committee's time to refute that statement and to point out that the serious situation confronting the mining industry is the result of a long-term program. As to that, I will refer to my statement.

Senator CHURCH. Let me say before you commence your statement, Mr. Palmer, that I am certainly much impressed with your qualifications to speak. I think that very few witnesses come before this committee that have better credentials to speak for the mining industry than those that you have presented this morning.

I want also at this time to note the presence of Senator Gordon Allott, of Colorado, who has just come into the room.

Senator, Mr. Palmer had some very complimentary things to say about you and your interest in the mining industry and its welfare, as well as the interest of the junior Senator from Colorado, Mr. Carroll. We are very pleased to welcome you.

Senator ALLOTT. Mr. Chairman, I appreciate that very much.

I would like to say this: I was down here and had to step out just at the time Mr. Palmer took the witness chair, and I would like to say this, if I may have the privilege of introducing him: I have known Mr. Palmer since we were in school together, in college. I knew him as an outstanding student. I have known him as an outstanding lawyer and as secretary of the Colorado Mining Association for many years, and I do not believe there is anyone that I know of who has given the constant, continuous, serious, objective study to the interest of all of our mining in Colorado that he has. Some have given great study to it for a while, but this has lasted now over a period of some almost 30 years that I know of, and I believe that he is greatly qualified and peculiarly qualified, because of his position, his interest and his studies, to be of help to this committee.

Mr. PALMER. Thank you very much, Senator.

Senator CARROLL. Mr. Chairman, I would like to say, too, that I have known the witness, Mr. Palmer, for better than 30 years, and I associate myself with the remarks of my senior colleague.

Mr. Palmer not only has the qualifications he has outlined here, but for many years when I was a member of the other body he was constantly seeking and searching and fighting for legislation which would be helpful to the mining industry, and, in my opinion, had it been accepted some 8 or 9 years ago, we would not be in the predicament that we are in today.

I think he is especially qualified to comment on the predicament in which this industry now finds itself today, and I am very happy to have him appear again before this committee. He has been here many times, and he has always given sound advice.

Mr. PALMER. Thank you very much, Senator.

Senator CHURCH. Mr. Palmer, you may continue with your testi

mony.

Mr. PALMER. May I make one request, and that is, to the filing of a report by the Secretary of the Interior that I be granted the permission of the committee to file a short statement which may deal with the report of the Secretary.

Senator CHURCH. I see no objection to that. You may have that permission.

Mr. REDWINE. Mr. Chairman, do I understand the witness to mean that he will file a report after Secretary Seaton testifies?

Mr. PALMER. Yes.

Senator CHURCH. I take it that this report will be a written report that you would like to file at that time?

Mr. PALMER. Yes.

Senator CHURCH. Fine.

(No subsequent report was filed with the committee.)

Mr. PALMER. The State of Colorado, all mineral-producing States, and the Nation as well benefit greatly from an active, expanding mineral industry. My State under ordinary conditions can and does produce many of the strategic and critical minerals which contribute greatly to the American industrial machine not only in war but in peace.

Among the necessary minerals other than the precious metals we produce are lead, zinc, copper, molybdenum, uranium, vanadium, fluorspar, beryl, tungsten, manganese, feldspar and many other lesser know metals and minerals. We have a widely diversified mineral storehouse within our boundaries.

We were among the first to dispel the fears of those who would have us believe that we are a have-not nation mineralwise. We have recently proven beyond a reasonable doubt that ore begets ore and that mining activity, when properly encouraged with worthwhile incentives, produces results.

Witness, for example, the shortage of uranium when the Atomic Energy Commission first announced its inspiring programs and today's impressive production of that mineral.

The domestic mining industry, at least the smaller segment of it, and, more recently, the entire industry, has been fighting for survival. I recall the effort made by the Congress, as Senator Carroll has indicated, 10 years ago to enact legislation designed to encourage do