STATEMENTS-Continued Veltfort, Theodore E., managing director, Copper and Brass Research Weaver, William M., Jr., president, Tungsten Institute, and president, LETTERS AND TELEGRAMS Bassett, H. Y., president, Calumet & Hecla, Inc., telegram, dated May 1, Brossard, Edgar B., Chairman, United States Tariff Commission: Letter Calhoun, Chad F., vice president, Kaiser Aluminum & Chemical Corp.: Continental Columbium Corp.: Letter dated June 9, 1958, to Senator 560 580 1013 Fraenkel, Ernest, chairman of the board, Samin Corp: Letter dated June 13, 1958, to Surrey, Karasik, Gould & Efrom.. Hardy, Royce A., Assistant Secretary of the Interior: Telegram to T. E. Veltfort, managing director, Copper & Brass Research Association.... Hayden, Hon. Carl, a United States Senator from the State of Arizona: Letter dated June 3, 1958, to Senator Murray- Jeffrey, F. R., International Minerals & Metals Corp.: Letter dated May 14, 1958, to Senator Murray.. Lissauer, F. H., president, Associated Metals & Minerals Corp.: Letter dated June 13, 1958, to Subcommittee on Minerals, Materials, and Fuels_ Miles, Clarence R., manager, legislative department, Chamber of Com- merce of the United States: Letter dated June 17, 1958, to Senator Miller, Arnold H., Inc.: Letter dated June 12, 1958, to Senate Interior Mills, Hon. Wilbur D., a Representative in Congress from the State of Arkansas: Letter dated June 16, 1958, to Hon. Fred A. Seaton, Secretary Mugdan, E., vice president, the Ore & Chemical Corp.: Letter dated Patterson, J. W., United Western Minerals Co., letter dated June 16, 1958, 901 Rubenstein, Charles, president, Metal Dealers Division, and William Schoonmaker, I. F., vice president, A. H. Wells & Co., Inc.: Letter dated Swisher, Elwood, D., vice president, Oil, Chemical and Atomic Workers Triggs, Matt, assistant legislative director, American Farm Bureau Federa- tion: Letter dated June 16, 1958, to Senator Malone___ Veltfort, T. E., managing director, Copper and Brass Research Institute: 999 1008 475 865 1008 1000 560 Telegram to Hon. Fred A. Seaton, Secretary of the Interior_ 562 1010 Werner, L. L., vice president, R. D. Werner Co., Inc.: Letter dated May 1010 Whitmore, Norman, engineer of mines: Letter dated May 26, 1958, to 664 Willis, Charles F., consultant, Arizona Copper Tariff Board: Letter dated 1003 ADDITIONAL INFORMATION Composition and properties of WI-52 alloy, table_ Data on ferrochrome program, submitted by Hollis M. Dole.. News release No. 868, dated June 16, 1958. Hoffmann, Frank N., legislative director, on behalf of David J. McDonald, Mine production of lead and zinc, tables submitted by Miles Romney....- Senator James E. Murray of Montana... Hon. Fred A. Seaton, Secretary of the Interior.. Office of Defense Mobilization: News release No. 638, dated June 13, 1958.. Our In-and-Out Policy on Minerals Could Hamper America's Defenses, 206, 83d Congress 733, 84th Congress. S. 34, excerpts (sec. 336, periodic adjustments of import duties). Briefs in support of a tariff on fluorspar entering into Canada: Page 587 720 781 911 913 1014 509 726 687 688 908 909 499 942 965 966 631 499 830 998 580 836 Donald A. Poynter. 839 Tungsten Institute: Members, September 1, 1956-June 1, 1958. 586 LONG-RANGE PROGRAM FOR MINERALS INDUSTRY MONDAY, APRIL 28, 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. James E. Murray (chairman of the full committee) presiding. Present: Senators Murray, Bible, Carroll, Malone, Dworshak, Barrett, Allott, and Watkins. Also present: Robert W. Redwine, assistant counsel, and George B. Holderer, staff engineer. The CHAIRMAN. The committee will come to order. Mr. Secretary, we are glad that you are here this morning to appear before this committee, and we assure you we will be listening to your statement with great interests. This is a continuation of the hearings held March 24 to 28 and has been called to ascertain the views of Secretary of the Interior Seaton and the administration. When these hearings were announced, I stated that it was my hope that out of these hearings and with the cooperation of the committee and the several executive agencies, particularly, the Department of Interior, that a formula would be developed that will give full employment, strength, and stability in peacetime to our all important minerals extractive industry, and provide an impregnable foundation for the maintenance of the mobilization base necessary to carry our Nation through an international emergency. At this point I call attention to the fact that, of the scores of industry witnesses who have previously testified and filed written statements with the committee, a large majority have urged that the Congress enact legislation, in many instances calling for high tariff rates and imposition of import quotas. Of course this suggested type of legislation is not within the jurisdiction of this committee. However it is the duty of this committee to serve as a sounding board for the minerals extractive industry. I therefore am sure that at the conclusion of this series of hearings the committee will recommend to Congress and to the appropriate committees, tariff and import quota procedures. I am likewise convinced that in some instances it may be considered expedient to legislate along lines that will include bonus incentive payments, or other types of subsidy for some of our individual minerals. In any event Mr. Secretary, our domestic minerals industry is at a crossroads. It is slowly, and in some instances, rapidly dying. The committee, I repeat, will listen with a great deal of interest to your testimony. Let me first ask: Would you rather read your entire statement without interruption, or would you prefer us to cross-examine you during the course of your presentation? Mr. SEATON. Senator, if I may, I would like to say this: I am sure it is proper for the committee members to put an interrogatory to me whenever they think it is necessary. But, if possible, I should like to read through the statement without interruption, because a number of questions which I am quite sure are in the minds of the committee members will be answered in a statement. It will be helpful to me and to the presentation if I could proceed without interruption. The CHAIRMAN. We will be happy to have you proceed in that manner. I would like to mention that several members of the committee are unable to be present this morning, because they have to attend other meetings. Senator O'Mahoney sent word that he would try to be here. Therefore, at the conclusion of your testimony, which will take a considerable time as I understand, would it be possible to have you come back a little later on when Senator O'Mahoney could be here? Mr. SEATON. Certainly, Mr. Chairman. The CHAIRMAN. I appreciate that, Mr. Secretary. You may proceed. STATEMENT OF HON. FRED A. SEATON, SECRETARY, DEPARTMENT OF THE INTERIOR, ACCOMPANIED BY ROYCE A. HARDY, ASSISTANT SECRETARY (MINERAL RESOURCES), DEPARTMENT OF THE INTERIOR Mr. SEATON. Mr. Chairman, it is a real pleasure to appear before this committee again. In response to the chairman's request, this statement will review with you some of the developments which have taken place since I discussed the problems of the minerals industries with you on June 4 of last year. We are hopeful that the recommendations the committee received at that time, together with the information being developed by these hearings, will lead to legislation that will encourage the continued development of domestic mineral resources. During the past 12 months there have been sharp declines in the prices of several metals. The prices of cooper, lead, zinc, and some other metals have declined to points at which minerals production is hampered by vexing economic problems. Many high cost producers have curtailed production or shut down; even some of the lower cost operators have cut back production or retrenched on their exploration and development work. One of the major causes of these weak markets for minerals is to be found in the fluctuations in the output of products such as automobiles and hard goods. The producers of minerals are dependent upon the consumptive requirements of the manufacturing industries which make use of the minerals. For example, more than 40 percent of the lead produced in the United States is consumed by the automobile industry-nearly 30 percent of the zinc. In period of lowered economic |