B. To be mailed to Chief, Storage and Transportation Division, Strategic and Critical Materials Branch, Bureau of Federal Supply, U. S. Treasury Department, 7th & D Streets, S. W., Washington 25, D. C. 1. One (1) certified copy of weight certificate. 2. Two (2) memo copies of Government or Commercial Bill of Lading. 3. Other documents as requested by specific shipping instructions. C. To be mailed to the Collector of Customs at the United States Port of Entry through which material is to be entered and imported into this country. (Address is furnished with shipping instructions.) 1. One (1) memo copy of Government or Commercial Bill of Lading. D. To be mailed to the storage depot indicated in the shipping instructions issued by the Storage and Transportation Division. 1. One (1) certified copy of weight certificate. 2. Other documents as requested by specific shipping instructions. Senator MALONE. Also, we would like to have you say, if you know, who the top officials of these companies are. Mr. WALSH. Yes, sir. Senator MALONE. That will be in your statement. Mr. WALSH. Yes, sir. Senator MALONE. That will be in your statement. And their addresses, of course. Mr. WALSH. Yes, sir. Senator MALONE. Now, go right on. Mr. WALSH. Zinc. There is one open contract. Senator MALONE. This is only one for lead? Mr. WALSH. Yes, sir, and that is all the lead there is. Senator MALONE. That is the only foreign lead contract? Mr. WALSH. That is the only lead contract for the stockpile that is now open. Senator MALONE. Do you have any contracts made up under conditions that the lead might go to private industry? Mr. WALSH. Not under stockpile, sir. Mr. ADLERMAN. I would like to call attention to the contract number GSOPD12194, between DMPA and the same company. Mr. WALSH. That is not a stockpile contract. Mr. ADLERMAN. But it is with the same company. There is the contract SCM371. Senator MALONE. This is lead? Mr. WALSH. Zinc. With the Hudson Bay Mining and Smelting Co., Ltd., of Canada. The effective date of that contract was January 1, 1952, and expiration December 31, 1955. It calls for a total of 30,000 short tons of high-grade zinc. 10,351 tons have been delivered, and it is scheduled at the rate of 500 tons per month. Senator MALONE. What do you mean, high-grade zinc? Mr. WALSH. That is the grade. Senator MALONE. That is a grade name? Mr. WALSH. Yes, sir. Senator MALONE. But this is 30,000 tons of zinc metal. Mr. WALSH. That is correct. The price is the average market price as published in Engineering and Mining Journal during the month of shipment. No funds were advanced. The material is paid for only when delivered. Senator MALONE. What is the company name? Mr. WALSH. Hudson Bay Mining and Smelting Co., Ltd. 39888-54-pt. 2- -22 Senator MALONE. Do you have the president or officials of the company? Mr. WALSH. No, sir. Senator MALONE. You will furnish that and a copy of the contract? Mr. WALSH. Yes, sir. (The information is as follows:) EXHIBIT No. 4 GENERAL SERVICES ADMINISTRATION, Hon. GEORGE W. MALONE, Chairman of the Minerals, Materials and Fuels Economic Subcommittee, United States Senate, Washington 25, D. C. DEAR SENATOR MALONE: In accordance with your request for information on contract GS-OOP-371 (SCM) with the Hudson Bay Mining and Smelting Co, Ltd., please be advised that the contract is dated June 15, 1951, and calls for delivery of 30,000 short tons of special high grade or high grade zinc, with shipments at the rate of 500 short tons per month beginning January 1952. The price of the zinc is the monthly average for the grade of zinc shipped as shown in the E. and M. J. Minerals and Metals Market for the month prior to the due month of shipment, f. o. b. contractor's refinery with $20 per ton freight allowed to the Government. Duty, if any, is for the account of the Government. The company's office is located at 500 Royal Bank Building, Winnipeg, Manitoba, Canada. The company has a New York office located at 247 Park Avenue, New York, N. Y. Mr. R. H. Channing is president; Mr. E. Weber, assistant secretary, located at Winnipeg; and Mr. J. F. McCarthy, assistant secretary at the New York office. office. Very truly yours, A. J. WALSH, Commissioner. GENERAL SERVICES ADMINISTRATION, AMENDMENT No. 1 TO CONTRACT NO. GS-OOP-371 (SCM) BETWEEN HUDSON BAY MINING AND SMELTING CO., LIMITED AND GENERAL SERVICES ADMINISTRATION, EMERGENCY PROCUREMENT SERVICE THIS AMENDMENT, entered into between the Hudson Bay Mining and Smelting Company, Limited, 500 Royal Bank Building, Winnipeg, Manitoba, Canada, hereinafter called the "Contractor," and the United States of America, acting through the General Services Administration, Emergency Procurement Service (formerly Federal Supply Service), hereinafter called the "Government": WITNESSETH THAT: WHEREAS the Contractor and the Government entered into Contract No. GS-OOP-371 (SCM), dated June 15, 1951, which together with any and all amendments is hereinafter referred to as the "Contract"; and WHEREAS the Government desires and the Contractor agrees that purchases under the contract may either be made under the Strategic and Critical Materials Stock Piling Act (Public Law 520, 79th Congress) or the Defense Production Act of 1950, as amended, (Public Law 774, 81st Congress; Public Laws 69 and 96, 82d Congress) at Government's option. Diversion of the zinc to industry under the Defense Production Act of 1950 as amended, will be made when directed by the Defense Production Administration and allocated by the National Production Authority. NOW, THEREFORE, it is agreed by the parties hereto that the contract authority for the contract shall be extended to include the Defense Production Act of 1950, as amended, (Public Law 774, 81st Congress; Public Laws 69 and 96, 82d Congress). The contract number will be GS-OOP-(D)-12208 when material is accepted der the Defense Production Act of 1950, as amended, and GS-OOP-371 (SCM) to the Government to cancel the contract without cost to either party as to all material not delivered under the contract upon the date of such notice of cancellation and on which the Contractor is not in default. ARTICLE VIII. Inspection, sampling, analyzing and weighing. a. Sampling and analyzing for metal content and examination for physical condition shall be in accordance with American Society for Testing Materials Specifications B-6, latest revision, except that samples may be secured in a manner mutually satisfactory to the Contractor and the Government. Examination for physical conditions shall be performed concurrently at the refinery by the Contractor's representative and Government Inspector or other Government designated representative, who shall be notified at least 10 days in advance of scheduled production or shipment from the refinery. Sampling shall be done by the refiner in the presence of the Government representative. Inspection by the Government shall be performed in such a manner as not to interfere with the production or processing operation, and the Government Inspector shall be accorded full cooperation of the Contractor or refiner. The properly prepared sample shall be divided into three (3) equal parts, each packaged, sealed, identified, and distributed as follows: One (1) to the Contractor, and two (2) to the Government. One of the latter shall be analyzed by the Government; the other retained for use as an umpire sample if necessary. b. In the event of a disagreement on metal content the umpire sample shall be submitted to a mutually agreed upon umpire whose determination shall be final. The cost of the umpire shall be paid by the party against whom the determination is made. c. In the event of disagreement on physical defects the facts shall be submitted to a mutually agreeable umpire, whose decision shall be final. The cost of the umpire shall be paid by the party against whom the determination is made. d. Contractor's or refiner's weight certificates which shall be certified to by the Contractor shall govern as to quantity. Cost of weighing, if any, shall be for the Contractor's account. e. The Government shall reject all material which does not comply with contract requirements, and it shall be reimbursed by the Contractor for all costs incurred by the Government in connection with the rejected material. The Contractor shall replace all rejected material with material meeting contract requirements which include at least the requirements, set forth in paragraph (a) of this Article VIII. ARTICLE IX. Payment. Payment shall be made by United States Government Treasury checks on the basis of certified net weight of material, promptly after inspection and acceptance by the Government, and after receipt from the Contractor of properly certified documents and invoices covering the shipment and weighing. ARTICLE X. Taxes and charges. a. All Canadian taxes, general or local, now or hereafter imposed, in respect to the material sold hereunder or the production, extraction, processing, sale, exportation, proceeds or value thereof, shall be for the account of the Contractor. b. The Government will arrange for customs entry of the material into the United States and all United States import taxes or duties, if any, shall be for the account of the Government. ARTICLE XI. Warranty. The Contractor warrants that the material sold hereunder shall be free and clear of all claims of third parties. The Contractor shall idemnify, hold harmless and defend the Government against all claims and demands with respect to such material. ARTICLE XII. Covenant against contingent fees. The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee. ARTICLE XIII. Benefit to congressional officials. No member or delegate to Congress or resident commissioner shall be admitted to any share or part of this contract or to any benefit that may arise therefrom unless it be with a corporation for its general benefit. The zinc slabs shall be shipped in clean sound railroad cars, securely strapped in unit loads and/or loose in accordance with prevailing commercial practice, Government's option. The Contractor shall notify the Government prior to the availability of the first quantity of the material for inspection, of the cost for securely strapping in unit loads, and also of any change in cost thereafter. If the Government desires the zinc slabs to be shipped in unit loads, it shall give timely notice thereof to the Contractor. If the Government wishes the zine slabs strapped, it shall pay for the cost thereof but only after agreement regarding said cost. ARTICLE VI. Delivery, marking, and shipment. a. Delivery of the zinc shall be made F. O. B. cars at refinery, Flin Flon, Manitoba, Canada, at the monthly rate of 500 short tons during the five successive years commencing January 1952 with a freight allowance as set forth in Article VII hereof. Contractor shall declare by the first day of the month preceding each calendar quarter the grade of zinc that the Contractor intends to offer for delivery hereunder during each quarter. b. Each piece of every lot shall be plainly marked with appropriate identifying symbol, which shall be the same in every case. c. The Contractor, acting as forwarding agent for the Government, but without additional remuneration for such services, shall attend to the shipment of the material in accordance with shipping instructions furnished by the Govern ment, and shall provide the Government with all necessary shipping documents. The Contractor will make no additional charge for the clerical work of preparing such documents, but should there be incurred any charges such as consular fees or any charges incidental to the storage of the material, or should the Government request the Contractor to pay freight charges from F. O. B. cars at refinery to destinations, such cost outlays shall be for the account of the Government with the exception of the $20.00 per short ton freight allowed by the Contractor to the Government. d. The Government shall issue instructions not later than the fifteenth day of the month preceding the month of shipment. In the event the Government fails to issue such shipping instructions, then immediately following the end of each such calendar month in which shipment is not made for that reason, the Contractor shall cause a storage certificate or certificates, or their equivalent to be issued in favor of the Government for such tonnages for which it has not received shipping instructions. The issuance of such storage certificates shall constitute delivery under this contract. The Contractor will provide free storage for one calendar month but should the Government not take physical delivery by then, the Government shall be liable for any storage or other charges negotiated between the Contractor and the Government arising from failure to take delivery. Upon subsequent receipt of shipping instructions covering the quantity of material so held in storage, or any part thereof, the Contractor shall load such material in railroad cars and ship in accordance with such Government shipping instructions in the same manner and without additional charge as if the affected quantity of zinc had not been stored. ARTICLE VII. Price. a. The price to be paid for the zinc shall be the average monthly East St. Louis, Illinois, price of Prime Western zinc as published by the E. & M. J. Metal and Mineral Markets for the month prior to the due month of delivery, plus the published differentials for high grade zinc and/or special high grade zinc for such month, for delivery F. O. B. cars at refinery, Flin Flon, Manitoba, Canada, with $20.00 per short ton, fractions in proportion, freight allowed by the Contractor to the Government. In the event the E. & M. J. Metal and Mineral Markets start publishing separate delivered prices for high grade zinc and/or special high grade zinc the monthly averages shall be used in the same manner as that provided for the computation of Prime Western zinc in this paragraph. b. If during the life of this contract the price of zinc should be placed under control by the Government, acting in its sovereign capacity, to such an extent that the Contractor in all good faith should believe that the monthly average quotation referred to above ceases to represent a free market quotation, then, upon the written request of the Contractor, the Contractor and the Contractiug Officer shall negotiate promptly with respect to the price or prices to apply to deliveries thereafter to be made under the contract. In the event that the parties are unable within three months from the date of the aforesaid written request by the Contractor to agree on a revised price or prices under the contract as hereinabove provided, the Contractor shall have the right by notice in writing to the Government to cancel the contract without cost to either party as to all material not delivered under the contract upon the date of such notice of cancellation and on which the Contractor is not in default. ARTICLE VIII. Inspection, sampling, analyzing and weighing. a. Sampling and analyzing for metal content and examination for physical condition shall be in accordance with American Society for Testing Materials Specifications B-6, latest revision, except that samples may be secured in a manner mutually satisfactory to the Contractor and the Government. Examination for physical conditions shall be performed concurrently at the refinery by the Contractor's representative and Government Inspector or other Government designated representative, who shall be notified at least 10 days in advance of scheduled production or shipment from the refinery. Sampling shall be done by the refiner in the presence of the Government representative. Inspection by the Government shall be performed in such a manner as not to interfere with the production or processing operation, and the Government Inspector shall be accorded full cooperation of the Contractor or refiner. The properly prepared sample shall be divided into three (3) equal parts, each packaged, sealed, identified, and distributed as follows: One (1) to the Contractor, and two (2) to the Government. One of the latter shall be analyzed by the Government; the other retained for use as an umpire sample if necessary. b. In the event of a disagreement on metal content the umpire sample shall be submitted to a mutually agreed upon umpire whose determination shall be final. The cost of the umpire shall be paid by the party against whom the determination is made. c. In the event of disagreement on physical defects the facts shall be submitted to a mutually agreeable umpire, whose decision shall be final. The cost of the umpire shall be paid by the party against whom the determination is made. d. Contractor's or refiner's weight certificates which shall be certified to by the Contractor shall govern as to quantity. Cost of weighing, if any, shall be for the Contractor's account. e. The Government shall reject all material which does not comply with contract requirements, and it shall be reimbursed by the Contractor for all costs incurred by the Government in connection with the rejected material. The Contractor shall replace all rejected material with material meeting contract requirements which include at least the requirements, set forth in paragraph (a) of this Article VIII. ARTICLE IX. Payment. Payment shall be made by United States Government Treasury checks on the basis of certified net weight of material, promptly after inspection and acceptance by the Government, and after receipt from the Contractor of properly certified documents and invoices covering the shipment and weighing. ARTICLE X. Taxes and charges. a. All Canadian taxes, general or local, now or hereafter imposed, in respect to the material sold hereunder or the production, extraction, processing, sale, exportation, proceeds or value thereof, shall be for the account of the Contractor. b. The Government will arrange for customs entry of the material into the United States and all United States import taxes or duties, if any, shall be for the account of the Government. ARTICLE XI. Warranty. The Contractor warrants that the material sold hereunder shall be free and clear of all claims of third parties. The Contractor shall idemnify, hold harmless and defend the Government against all claims and demands with respect to such material. ARTICLE XII. Covenant against contingent fees. The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee. ARTICLE XIII. Benefit to congressional officials. No member or delegate to Congress or resident commissioner shall be admitted to any share or part of this contract or to any benefit that may arise therefrom unless it be with a corporation for its general benefit. |