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a trade agreement with Japan for the supplying of metallurgical coal from Manchuria into Japan.
Based on the foregoing facts and with some little knowledge of international trade, particularly as it relates to coal, it is my judgment that free trade or lower tariffs is a one way street and the only country moving along this street is the United States of America. For instance, England refused to join the Schuman plan because it might damage its export trade and adversely affect wage scales in England; va ous South American countries have instituted import license and quota systems against American goods and commodities, and waste residual oil from Venezuela is indiscriminately dumped on our eastern seaboard in violation of every concept of reasonable competition with both liquid and solid fuels produced in this country.
In commenting on the Randall Commission report, which you refer to and evidently approve, I would say that the dissenting opinions of various members of that Commission makes out a better case than the majority report which favors the Randall policy and dovetails with your views. It is quite difficult to make adequate comment on your article in a brief letter, but I think it is reasonable to make the observation that you should refrain from writing additional stories on tariffs unless you give consideration to all available facts related to this involved subject.
I might pause here, Mr. Chairman, to make the observation that most of these people refuse to give any consideration to the quota systems and to the import licenses and to the subsidies that apply in practically all of these foreign countries. I say that in nationalization of minds it is really a subsidy proposition.
Mr. Hoffman replied as follows: Upon my return to Los Angeles this morning, I found your letter of February 18, and which I have read with interest.
I am well aware of the many trade restrictions among the Europen nations, as well as those which operate against American goods. I believe that if we are to realize on the potentials of the free world
And this is a phrase usually usedthere must be a continuing reduction in restrictions of all types. At the moment, the great need is for expanded imports in order to put our customers in a position where they can pay for the goods they need to maintain their strength.
These documents point up the fallacy of the position of men like Mr. Hoffman and others who say in effect that "We should take the goods from Europe so that they might secure American dollars to buy goods from us."
This evidently is not working out that way, because countries that receive our dollars are shopping around Europe and they buy in the cheapest countries, even from Russia, whose subsidies are very evident, and not from us. This policy has a very bad effect on the economy of the United States, especially with regard to the coal economy. In view of these facts, it seems to us that, if we have money to send to Europe for the purpose of boosting their trade at the expense of our trade, we should provide for those in our own country who are unemployed as a result of this policy.
We, therefore, favor this bill as a minimum and urge the committee to give additional consideration to the whole problem involved, which is more than unemployment compensation and which gets into the whole problem of working out these matters on an equitable, sensible arrangement which will protect the interest of American labor and American industry. We must maintain our own economic strength and provide for the unemployed in this country if we hope to be able to help other nations in the solution of their economic problems.
The CHAIRMAN. We thank you very much, Mr. Kennedy. Are there any questions?
Mr. BAKER. Mr. Chairman.
Mr. BAKER. First, may I extend to Governor Kennedy my own appreciation for his appearance here and his contribution to this most important subject. Just a question or two, Governor. We all know the contributions of coal mining to national defense and especially in time of actual war. Will you state to the committee when a mine is down about how long it takes to get it back in real production?
Mr. KENNEDY. It all depends on the length of the idleness. If the mine is idle for a month or more it would take at least another month to get the mine in operation.
Mr. BAKER. As to coal miners in general, applying that test on unemployment insurance that should be offered reasonably similar employment, is there some distinction, some difference, between coal miners and other unemployed people? Applying that test, will you tell us whether they should have a longer period when it is due to trade policy? Is there something unique in their occupation?
Mr. KENNEDY. I certainly do, for the reason that in the immediate vicinity of coal mines there are no other occupations to which they might go. There are no other industrial plants, or very few, with the result that when they are idle they are idle and they have absolutlely no opportunity to go anywhere else unless they move to Detroit or some other place where there might be available employment.
However, generally speaking, when a mine is down as a result of failure of exports or the residual-oil situation or general decline in industry, those men are more adversely affected than the average cross section of American labor.
Mr. BAKER. I thank the gentleman very much.
Mr. UTT. Mr. Kennedy, do you believe that it would be proper to include a section which would prohibit illiegal aliens who are unemployed to draw unemployment insurance?
Mr. KENNEDY. I do not know about aliens. I think probably we have to take care of thəm while they are here. I would imagine, insofar as aliens are concerned, we probably have to take care of them while they are here on the same basis that we care for other people. In Pennsylvania, where we have aliens employed in the mining industry, they participate in the same wages and they participate in the same benefits of government as all other people.
Mr. Urt. I am not talking about aliens. I am talking about aliens who are in this country illegally.
Mr. KENNEDY. Illegally?
Mr. Urt. My question is, do you believe that illegal aliens in this country should be allowed to draw unemployment insurance?
Mr. KENNEDY. I think if they are here, Congressman, they are probably entitled to participate to the same extent as all other people.
Mr. UTT. If they are here illegally?
Mr. KENNEDY. Yes. That has been the case. Until it is found out that they are here illegally, of course, they participate in the same benefits as all others.
Mr. UTT. That is all.
The CHAIRMAN. The next witness is Mr. Elwood Hain, chairman, lead and zinc council, United Gas, Coke, Chemical Workers of America, CIO. I think the reporter has the capacity in which you appear
your name. You may proceed. Mr. BAKER. Mr. Chairman. The CHAIRMAN. Mr. Baker. Mr. BAKER. Two of these gentlemen, Mr. John Marshall, president of local 401 of the zinc workers, of Bartlesville, Okla., and Mr. Homer Wilson, president of local 407, at Mascot, Tenn., follow on the witness list. I would like these two gentlemen to sit with Mr. Hain so they may make some contribution.
The CHAIRMAN. Without objection, we will be glad to have them. Proceed.
STATEMENTS OF ELWOOD HAIN, CHAIRMAN, LEAD AND ZINC
COUNCIL, UNITED GAS, COKE, CHEMICAL WORKERS OF AMERICA, CIO; JOHN MARSHALL, PRESIDENT, LOCAL 401, UNITED GAS, COKE, CHEMICAL WORKERS OF AMERICA, CIO, BARTLESVILLE, OKLA.; AND HOMER WILSON, PRESIDENT, LOCAL 407, UNITED GAS, COKE, CHEMICAL WORKERS OF AMERICA, CIO, MASCOT, TENN.
Mr. Hain. Mr. Chairman and distinguished committee, we are here representing the lead and zinc workers of the United Gas, Coke, Chemical Workers of America, CIO; and, as the committee knows there is a serious problem involved in this industry.
The CHAIRMAN. In order to be perfectly clear, Mr. Hain, is it Homer Wilson that is with you?
Mr. Hain. This is Mr. Homer Wilson, and this is Mr. John Marshall. Mr. Marshall is representing the smeltermen's union, and Mr. Wilson is representing hard-rock miners, both of which are in our union and both of which it takes to make lead and zinc. You first have to dig it out of the ground, and then you have to smelt it, so we have just brought in 1 representative from each of the 2 workings of the lead and zinc situation.
For some time now the Congress has been aware of the serious economic distress in the domestic lead and zinc mining and smelting industry. This fact is shown by the large number of bills which have been introduced in the Congress proposing in one way or another the distress in this industry.
These bills which have been introduced are, I believe, about 15 in number, some from the Senate and some from the House. Senate bill 1562 was introduced by Senator Dworshak of Idaho; Senate bill 1619, by Senator Malone of Nevada; Senate bill 1620,' by Senator Malone of Nevada; Senate bill 3349, by Senator Millikin of Colorado for himself and Senators Johnson of Colorado, Bennett of Utah, Case of South Dakota, Mundt of South Dakota, Watkins of Utah, Kuchel
of California, Barrett of Wyoming, Hunt of Wyoming, and Anderson of New Mexico; House bill 4462, by Congressman Stringfellow of Utah; House bill 4796, by Congressman Withrow of Wisconsin; House bill 5019, by Congressman Young of Nevada; House bill 5780 by Congressman King of California; House bill 6011, by Congressman Dawson of Utah; House bill 6651, by Congressman Metcalf of Montana; House bill 8720, by Congressman Dawson of Utah; House bill 8752, by Congressman Ewart of Montana; House bill 8820, by Congressman Aspinall of Colorado; House bill 8827, by Congressman Dawson of Utah; and House bill 8892, by Congressman Young of Nevada.
At the height of this interest this committee and the Senate Finance Committee adopted resolutions which resulted in an extensive investigation, under section 332, of this whole problem by the United States Tariff Commission.
Simultaneously, the Commission heard an application for "escape clause" action under section 7 of the Trade Agreements Extension Act of 1951. The first paragraph of the identical resolutions adopted by both committees reads as follows:
Resolved,_That the Tariff Commission is hereby directed pursuant to section 332 of the Tariff Act of 1930, as amended (19 U. S. C. 1332), to make a thorough investigation of the domestic lead and zinc industries, including the effect of the imports of lead and zinc on the livelihood of American workers, and to report the results of its investigation to the Senate Finance Committee on or before Macrh 31, 1954.
This committee has already taken cognizance of the problem which has been raised regarding the effect of foreign trade in this industry “on the livelihood of American workers."
No effect on the livelihood could be greater than that of total or partial unemployment. Since this committee adopted the above resolution we are here today.
Recently the Tariff Commission issued its report. At this time we shall distribute some copies of that report with which we are sure you are familiar, and request that it be incorporated by reference in our statement at this point. This is a rather extensive document, proving the contentions that we make here and which we made before the Tariff Commission in its hearings held last November.
The CHAIRMAN. This voluminous document cannot be printed as a part of the record of this hearing. We will see that reference is made to them at this point in the record.
The document referred to is, Lead and Zinc-Report on Investigation Conducted Under Section 332 of the Tariff Act of 1930, by the U. S. Tariff Commission.
Mr. Hain. Yes sir; just by reference, Mr. Chairman.
Mr. Hain. As a result of these hearings and this report we understand the Commission has made some recommendations under the "escape clause" and these are now pending before the President.
These bills and this report, in our opinion, conclusively prove the urgent necessity for some action to assist the workers who have borne the brunt of the economic dislocation in this industry. This is a special case which we feel requires Federal action because of the extent of Federal involvement in bringing about the situation as it exists today.
There are two factors which made the Federal trade and tariff policy especially pertinent in regard to employment in lead and zinc. Unlike most industries which were relieved from controls at an earlier period the lead and zinc industry continues to be affected by policy decisions made during the earlier days of the Korean emergency. These strategic metals constantly face the up and down needs of the Federal Government. When
When war policy requires it these mines and smelters are expanded, new shafts are sunk, the Government seeks to purchase on long term contracts from every available source.
As a result of this whole problem we were very encouraged when Congressman Baker introduced H. R. 8585 and we are here in strong support of that measure. This bill deserves the support of the administration and of the Congress.
Though it is focused at a special problem its strength lies in its permissive nature rather than providing a compulsory mandate. The bill requires the Tariff Commission to make a "finding" and the President to "certify” that the unemployment in a given industry or segment thereof results from Federal tariff or trade policy. This permissible po.icy eliminates potentiality of conflict with the administration of either the foreign trade policy or the unemployment compensation administration.
The bill provides further that the payment of unemployment compensation to an unemployed individual shall be increased to an amount not in excess of two-thirds of the individual's average weekly wage. And that likewise, that the duration of benefits shall be for a period of not more than 39 weeks in a benefit year. Only then will the State be eligible for a Federal supplementary grant.
These suggested provisions are not inconsistent with the recommendations which President Eisenhower made regarding benefits in his January economic report. These recommendations are
not inconsistent with the recommendations of the Secretary of Labor in his communications to the governors of the several States dated February 16, 1954.
With the exception that in view of the extensive nature of this distress and the source of it, the Federal Government, we are recommending that the Federal Government take this step of providing supplementary benefits for a single year.
We note the bill makes one further concession in relation to the financing of such supplementary grants required under its terms. It provides that these grants shall be allocated “out of the proceeds of customs duty collected under the Tariff Act of 1930 as amended.” We see no objection in having these supplementary payments made out of customs duty.
At present customs duties are not allocated but go into the general fund. But, the fact is that they are collected from imports which result from the implementation of Federal foreign trade policy. Thus they are collected from the implementation of the same broad policy which has caused our problem in the lead and zinc industry.
At the present time the unemployed or partially employed workers are financing the major cost which results from this Federal foreign trade policy. We believe it would be fair to shift some part of this cost from the workers on to customs receipts which result from the same policy.