Mr. BORTON. The quantitative limitation, the 9,000-ton quota was
announced and imposed within 3 or 4 days after the ODM announced
the diversion from the stockpile acquisition of the 75,000 for the
first 6 months of this year. Our action, although it followed within
a week of theirs, was intended to supplement theirs, and was taken
with the knowledge and consent and complete agreement of ODM.
Mr. ARNOLD. It did not make any more secondary metal available,
though, than was already available?

Mr. BORTON. No, it did not.

Mr. ARNOLD. It did not make any additional available-it kept a
further drain from happening?

Mr. BORTON. That is true.

Mr. ARNOLD. That is all.

Mr. YATES. Thank you very much, Mr. Borton, for coming in,
and also thank your assistants for coming in, and telling us the story.
I would like to make this tabulation a part of the record, showing
the condition of United States exports through the period 1939–55.
(The tabulation is as follows:)

Aluminum scrap-United States exports, imports, and licensing, 1939–55

1 Special report from Bureau of the Census. Figures are preliminary.
Not available.

Sources: Bureau of the Census; BFC Export Licensing Statistics.

4,386

763
2,120

Monthly report (1952–55) of stocks, receipts, and consumption of purchased aluminum-base scrap in the United States1

Monthly report (1952–55) of stocks, production, and shipments of secondary aluminum pig and ingot1

Mr. YATES. We will adjourn now at this time until 10 o'clock tomorrow morning.

(Whereupon, at 3 p. m., the subcommittee recessed, to reconvene at 10 a. m., Wednesday, May 25, 1955.)

ALUMINUM INDUSTRY

WEDNESDAY, MAY 25, 1955

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE No. 3 OF THE SELECT COMMITTEE

TO CONDUCT A STUDY AND INVESTIGATION
OF THE PROBLEMS OF SMALL BUSINESS,

Washington, D. C.

The subcommittee met, pursuant to recess, at 10:25 a. m., in room 362, House Office Building, Washington, D. C., Hon. Sidney R. Yates (chairman of the subcommittee) presiding.

Present: Representatives Yates, Sheehan, and Steed.

Also present: George L. Arnold, Irving Maness, subcommittee counsel; Katherine C. Blackburn and Clarence D. Everett, staff members; Victor P. Dalmas, assistant to minority members.

Mr. YATES. The hearings will come to order.

Mr. Rhoades.

STATEMENT OF D. A. RHOADES, VICE PRESIDENT AND GENERAL MANAGER, KAISER ALUMINUM & CHEMICAL CORP., ACCOMPANIED BY WILLIAM J. EDMUNDS, METAL CONTROL MANAGER, KAISER ALUMINUM & CHEMICAL CORP.

Mr. YATES. Mr. Rhoades, the committee is pleased to have you with it this morning, and we would be pleased to have your statement. Would you state your name and residence for the record, together with your title?

Mr. RHOADES. I am very happy to appear before the committee this morning. My name is D. A. Rhoades, vice president and general manager of Kaiser Aluminum & Chemical Corp.

Mr. YATES. Where do you live, Mr. Rhoades?

Mr. RHOADES. I live in California.

Kaiser Aluminum welcomes this opportunity to explain the part it is playing in supplying present market requirements for aluminum and aluminum products.

The present market is the largest in history. During the first quarter of 1955, total consumption of aluminum products reached a new alltime high, and this rate is continuing through the present quarter.

Our shipments in all products are at record levels and assuming stockpile acquisitions at the present rate our shipments of primary pig, ingot, and billet to nonintegrated users will this year amount to more than 210 million pounds.

This permits a tremendous expansion of nonintegrated casting and nonintegrated extrusion operating levels. Kaiser will during 1955 deliver more primary metal to these nonintegrated users and the national stockpile combined than we produced in all of our reduction facilities in 1951. We are proud of this accomplishment which demon