From all information available, apparently one of the contributing factors to this shortage is the fact that the United States Government is allowing a greater percentage of scrap to be shipped outside of the country. If sufficient scrap were available, in addition to pig, much of the shortage would be alleviated. We understand, also, that another contributing factor is due to the construction of Alean Kittimat project and that the other large extruders would not go ahead with plans for similar projects, and now with the shortage, much of Alcan's production is being placed abroad. We are certainly interested in what conclusions are reached and we would appreciate any suggestions you may have. Yours very truly, E. L. DENISON, President. UNIVERSAL METAL PRODUCTS CORP., DANTE F. FASCELL, Member of Congress, House Office Building, Washington, D. C. DEAR MR. FASCELL, We have your letter of May 23 with the enclosed documents relative to distribution of aluminum. As a manufacturer of aluminum products we buy from both the price suppliers and independent extruders. Like most of the smaller manufacturers in Florida it is not practical for us to own or our extrusion mills. We therefore buy our aluminum either in finished sheet or extended shapes. At present we are buying approximately 25 percent of our needs from Alcoa, and 65 percent from Revere. With the remaining 10 percent from other sources. On orders being placed today our suppliers are quoting deliveries during the month of August. These extended delivery dates make purchasing very difficult. We have approximately 35 individual patterns of extruded aluminum and these pieces are not used in a direct proportion with each other and vary from month to month with the sales to the public. In placing orders 3 to 4 months ahead we often find ourselves with a shortage or an excess inventory on certain items. It is very difficult for a small business to operate under these conditions. If more aluminum can be released to the independent manufacturers it should result in an immediate swing back to the normal 4- or 5-week delivery dates on extrusions. If this can be accomplished it would certainly be a great service to the small manufacturers of this area. Very truly yours, W. B. BROTHERS. ADAMS ENGINEERING Co., INC., Hon. DANTE B. FASCELL, Member of Congress, House Office Building, Washington, D. C. MY DEAR MR. FASCELL: It was indeed gratifying to me to receive your memo on the problems of small business with reference to the procurement of supplies of aluminum. As you are no doubt aware, we are possibly the largest consumer of primary aluminum in Florida, and our requirements are approximately 10 million pounds per year. We have had a great deal of difficulty in securing the material necessary to carry on our day-to-day operations. It seems unfortunate that the major producers have seen to it that they have a sufficient supply of aluminum for their fabricating facilities, and will sell very little primary metal. We have had a contract with one of the major producers whereby they are committed to deliver to us a minimum quantity of 200,000 pounds per month. They have held fairly well to this, but, when the release from the Government stockpile was ordered, we received no additional metal from this particular primary producer. It is quite obvious that the primary producers have broken faith with the American people in that when the agreement for the expansion of aluminum production was made, they set aside one-third for their own production and let the independents get what was left over after the Government stockpiling plans were met. This is probably the metal that we are now getting. I frankly believe that all of the primary metal that we had been receiving prior to this last increase in production is no longer forthcoming from the producers. I certainly think that the Office of Defense Mobilization should go back and review the original guaranteed market contracts and see that one-third of this expanded production is reserved for independent users, and the balance divided between the stockpiling and the primary producers. Certainly the strength of this country lies in its ability to produce, and by throttling numerous manufacturing concerns, particularly in Florida, our economy and the defense effort must be jeopardized. Your letter to Mr. Fleming of May 18 was very much to the point. However, I do think that a permanent change should be made so that the independent producers don't have to appeal to the Office of Defense Mobilization 3 or 4 times a year for metal necessary for survival. Again, let me thank you for your interest in the matter. I am certainly glad to see that our Representative is right on the job. With kindest personal regards. Sincerely yours, Hon. DANTE B. FASCELL, House of Representatives, Washington, D. C. CHARLES SILVERS, President. LUDMAN CORP., OFFICE OF THE PRESIDENT, North Miami, Fla., May 28, 1955. DEAR DANTE: The entire aluminum industry here, as well as my associates and I, greatly appreciate your prompt attention to a matter of such great importance to this area. We believe that the good work which was done by you and your associates will be of benefit to the industry, which means so much to the growth of this State. The use of aluminum is increasing at such a rapid pace, that the matter will not be fully straightened out until aluminum-producing facilities are increased. Since aluminum is a critical material tied up with national defense, it will serve the best interests of this country, if enough aluminum-producing facilities are added so that the increased usage does not periodically cause serious shortages. The claims that are being made as to the overproduction of aluminum reminds me of our Miami Beach hotels. You know how, over the years, after each big building year, people were concerned as to how the hotels were going to be filled. In spite of this concern, they continue to need more. While, in some instances, after a big building year, the facilities were more than adequate, this condition was always short lived for, by the following season, this area needed additional buildings. I know how busy you are with the many problems that come up in Washington. Your keen analysis, which resulted in such prompt action, and your willingness to take the lead and enlist the aid of the rest of the Florida delegation was undoubtedly an important factor in the decisions which, we understand, were reached to aid the independent extruders. We hope that the decision to aid the independents will result in our getting the additional aluminum which we need to help serve the industry here, and that, this time, the primaries will allot to the independents the full amount of the material which the Government earmarks for the independents. The material which you sent here will be distributed to aluminum users in this DEAR MR. FASCELL: Thank you for your letters of May 23 and May 27 with regard to the distribution of aluminum. We feel that you are doing a splendid job and making progress in this direction and we are completely in accord with your plans. Our firm uses a large amount of aluminum but we have not experienced too much difficulty in getting what we require. However, we do know of the difficulties forced upon some of the other manufacturers and do ourselves have an occasional spot where we are forced to do some tall hunting for special shapes or sizes. However, with your approach and patience we are certain you will prevail upon the Office of Defense and others to properly allocate all available aluminum and insure the full quota required by the Florida industries. My personal sincere good wishes for continued health and success in all your undertakings. Very truly yours, J. C. WOLLARD, President. ROBERT RUSSELL, SCRAP METALS, Miami, Fla., June 8, 1955. Hon. DANTE FASCELL, Member of Congress, House Office Building, Washington, D. C. DEAR SIR: I wish to express my sincere appreciation for the efforts you and your associates have extended the independent users of aluminum. I am I have read the literature you sent me, and found it very enlightening. in accord with you wholeheartedly, in that the economy of south Florida is definitely based on the amount of aluminum which is made available to this area. Without sufficient supplies we are dead ducks. Please continue your well-directed efforts toward attaining the amount of material so badly needed by this district. Very truly yours, ROBERT RUSSELL. MIAMI WINDOW CORP., Mr. DANTE B. FASCELL, M. C., New House Office Building, Washington, D. C. DEAR CONGRESSMAN: We wish to take this opportunity to thank you very much for the interest you have taken in helping the Florida aluminum industries, in the diversion of the first 150 million pounds of aluminum billets. We used to secure from the Aluminum Company of America an additional supply of approximately 170,000 pounds per month, but when the announcement was made the Kaiser Aluminum & Chemical Sales Co., who are supplying us with 360,000 pounds per month, cut us back to 100,000 pounds per month. So in the overall picture we have received considerably less aluminum than we did before the diversion was made. As we can get no satisfactory explanation we were wondering if you could give us the answer. Thanking you and with best personal regards, we remain, Yours very truly, DEAR MR. FLEMMING: The entire Florida aluminum industry has appealed to you to divert 150 million pounds of aluminum from stockpile for the second half of 1955, requesting that this amount be made available to independent users. We understand that a substantial amount of this metal was stockpiled last year in excess of last year's stockpiling schedule, and that diverting this amount will not jeopardize our country's military preparedness program. 70669-5628 We point out that, historically, it is wise from a defense standpoint to maintain the high production level, as well as the sound financial strength, of these independent users. In the event of a national emergency, these very concerns in all probability will be called upon to produce immediately extremely essential military needs. We further point out that a large percentage of our Nation's finished aluminum products are now being manufactured in Florida. The continued high productivity of these aluminum products is a must to the present and future economy of our State. It also must be noted that the large aluminum producers have no extruding facilities in Florida and the Florida manufacturers, who combined represent a great portion of this all-important industry, must call upon these local extruders to supply their demand. It is, therefore, our well-considered opinion that you should immediately recognize this vital need and proceed immediately to divert the stockpiling of this 150 million pounds of aluminum from the second half of 1955 to independent users, provided, of course, that such release is consonant with our military preparedness program. We further request that such time as you order diversion of this aluminum from the stockpile, you direct, as required under the two-thirds rule of the guaranteed marketing contracts, that the entire 150 million pounds of aluminum be distributed to independent users, and further, that the distribution of said aluminum be supervised by the General Services Administration or any other appropriate agency designated by your office. Sincerely yours, Spessard L. Holland, United States Senator; George A. Smathers, Hon. SIDNEY R. YATES, DEPARTMENT OF JUSTICE, Washington, D. C., June 16, 1955. Chairman, Subcommittee No. 3, House Select Committee on Small Business, House Office Building, Washington, D. C. MY DEAR CONGRESSMAN YATES: This has reference to our discussions on June 14, 1955, concerning your proposal to invite certain aluminum company representatives to meet jointly with members of your committee to discuss problems involved in the current aluminum shortage. You inquired as to safeguards that would be appropriate to minimize the possibility that such meetings may result in violations of the antitrust laws. As I indicated to you earlier, meetings between competing companies, or companies producing and selling comparable products, often create a climate whereby agreements and understandings in restraint of trade may result. It is my understanding, however, that you desire to have representatives of these aluminum companies confer jointly with your committee for the purpose of determining factors bringing about such shortages as may exist, and in connection therewith to determine the extent to which the provisions of certain supply contracts between General Services Administration and primary aluminum producers are being observed. In these circumstances, in order to minimize the possibility of violation of the antitrust laws during, or as a result of, these meetings, it is suggested that you establish safeguards that would include the following. These safeguards have been adopted by the majority of executive departments and agencies in their conduct of their industry advisory committee programs. (1) The agenda for the meetings between the committee and the representatives of the private companies involved are to be initiated and formulated by the Government; (2) Such meetings are to be held at the call of and under the chairmanship of full-time Government officials; (3) Full and complete minutes of each such meeting are to be maintained; (4) The function of such a group shall be purely of an advisory nature and any determination of action to be taken is to be made solely by Government representatives. So long as the activities of these companies and their representatives in their meetings with your committee are carried on within these limitations, it is my view that these discussions can be carried on with the least possibility of antitrust violation. I would suggest, however, that you make clear to the participants in these meetings that the Department of Justice retains complete freedom to institute proceedings under the antitrust laws in the event any course of action resulting from such meetings is used to accomplish unlawful ends. Sincerely yours, STANLEY N. BARNES, Assistant Attorney General, Antitrust Division. JUNE 27, 1955. Mr. RICHARD PICKENS, Texas Aluminum Co., Rockwall, Tex. DEAR MR. PICKENS: The honorable Abraham J. Multer has referred your letter of June 21, 1955, concerning your testimony of May 18, 1955, before Subcommittee No. 3, to me for reply. I am submitting the information contained in the above-mentioned letter to Subcommittee No. 3, which as you know has been holding hearings on the aluminum problems. Sincerely yours, IRVING MANESS. TEXAS ALUMINUM CO., INC., Hon. ABRAHAM J. MULTER, Chairman, Subcommittee No. 2, House of Representatives, Washington, D. C. DEAR MR. MULTER: Reference is made to the attachment to your letter of June 6 regarding my testimony of May 18 to House Committee No. 3. I believe the best way to confirm this testimony is to forward, to your attention, the following telegrams and letters: 1. Mr. H. W. Long's (Commonwealth Extrusion Corp.'s) letter of March 7, 1955, to Mr. Bert Inch, vice president, Kaiser Aluminum & Chemical Sales, Inc. 2. Kaiser Aluminum Co.'s Mr. A. Ford Lovelace's letter of March 18, 1955, to our Mr. H. W. Long. 3. Kaiser Aluminum Co.'s cable of March 14, 1955, to their Puerto Rican representative. 4. Foilwax's (Reynolds Metals Co.'s) cable of February 18, 1955, to their Puerto Rican representative. 5. Foilwax's (Reynolds Metals Co.'s) cable of March 16, 1955, to their Puerto Rican representative. All of these cables and letters were in answer to Mr. Long's letter orders of February 22, 1955. Even though there have been many other pieces of correspondence and a great many telephone conversations, as well as personal conferences with the three suppliers regarding the critical condition of Commonwealth Extrusion Corp.'s metal supply, these I believe are evidence enough to point out the following: Kaiser Aluminum Co., together with the Aluminum Company of America, advised you sometime in April that they were supplying us with a sufficient amount of pig for our operations in Puerto Rico. Mr. Lovelace's letter of March 18 was in response to Mr. Long's writing Mr. Bert Inch, vice president of Kaiser Aluminum & Chemical Sales, Inc., on March 7, 1955, asking him why he was unable to procure pig aluminum from Kaiser, even though Mr. Inch had made a speech on February 14, 1955, in Houston, Tex., to the effect that there was plenty of aluminum for any real demand and that there was no danger of a shortage. Insofar as the 50,000 pounds per month that Kaiser had given us, as mentioned in your letter of March 20, 1955, to Arthur Snow, I wish to advise that we have been emphatically and repeatedly told by all Kaiser representatives from Mr. Don Walker, head of their pig and ingot division, to Mr. Radin, their contact in Puerto Rico, that there is, under no condition, any metal available for our Puerto Rican operation. I have checked this personally with Mr. Radin, Mr. Walker and Mr. M. W. Foster, their Dallas, Tex., representative, and have |