Mr. Lenz is working with us at the present time on a part-time basis. He has really returned to his job at Kennecott. He is the president of Kennecott Sales Corporation of Kennecott Copper. Mr. REGAN. He will be available tomorrow morning? Mr. EWING. Yes. Mr. REGAN. Very good. And probably the information on each of these men is attached? Mr. EWING. I believe it is all complete, sir. Mr. REGAN. The exhibit A referred to is the one that Mr. Lipkowitz is going to submit after talking with Mr. Soule but the information is not yet available? Mr. EWING. We have the majority of the information which has been submitted to you, but then we are going to give you an appendix in addition to this. Mr. REGAN. Very good. (The information referred to is as follows:) EMPLOYMENT EXPERIENCE OF OPS METALS BRANCH WITNESSES Sam M. Ewing Employment experience: June 15, 1935, to October 1, 1941: Metallurgist and salesman with Republic Steel Corp., Cleveland, Ohio. October 1, 1941, to July 1, 1943: Chief of Reusable and Fabricated Products Section, Iron & Steel Branch, Office of Price Administration, Washington, D. C. July 1, 1943, to October 15, 1945: United States Army. November 1, 1945, to December 15, 1948: Manager of tubular sales, Youngstown Welding & Engineering Co., Youngstown, Ohio. December 1, 1948, to December 6, 1950: President of Youngstown Steel & Alloy Co., Canfield, Ohio. December 6, 1950, to present: Serving WOC as Chief of Metals Branch, Office of Price Stabilization. Samuel Lipkowitz Recent employment experience: January 26, 1951, to date: Consultant to OPS Industrial Materials and Manufactured Goods, acting as chief economist, with supervision over economists in various branches, including the Metals Branch. On leave of absence from IBRD. February 1947 to January 1951: Adviser on mineral economics, Economic Department, International Bank for Reconstruction and Development. Acted as adviser to officers of bank on the mineral problems of member countries; participated in loan missions and loan negotiations (examples-Philippine Islands, Iraq, Poland, Yugoslavia, and Colombia). August 1944 to February 1947: Chief Metals and Minerals Section, International Resources Division, United States Department of State. Acted as De partment representative on United States committees re international allocations of tin, copper, lead, and coal. Served as executive secretary, United States Delegation to World Tin Conference, London, 1946. Advised superior officials of Department on policy with respect to contracts on foreign purchases of minerals and metals. December 1941 to August 1944: Chief, Metals and Minerals Section, Office of Manpower Requirements, WPB. Acted as (a) adviser to quota committee, premium price plan, copper-lead-zinc; (b) office representative on intra- and inter-departmental committees on mining manpower; (c) adviser to Nonferrous Metals Commission, National War Labor Board. January 1941 to December 1941: Economist, United States Tariff Commis sion. Among my duties was to assist in preparation of reports for OPA re Michigan copper and cotton cloth. C. O. Jacoby Previous experience: February 19, 1951, to date: Acting Chief, Ferro Alloys Section, Metals Branch, Office of Price Stabilization. On loan from Electro Metallurgical Co., a division of Union Carbide & Carbon Corp., 30 East Forty-second Street, New York City. August 1, 1950, to date: Assistant vice president, Electro Metallurgical Co., a division of Union Carbide & Carbon Corp. Coordinating all activities at Marietta, Ohio, consisting of an operating coal mine, an operating steam plant, the construction of an 180,000-kilowatt electric power plant, and the construction of a ferro-alloy plant of such capacity as will use all the available power under construction. April 1, 1920, to August 1, 1950: Transferred from Niagara Falls, N. Y., to the operating department of Electro Metallurgical Co. in New York City. Served in administrative and executive capacity in production, operating, financial and other phases of the company's ferro-alloy business. Appointed assistant vice president in 1944. Handled all Washington contacts during World War II, including the construction of facilities, procurement of materials, etc. February 17, 1917, to April 1, 1920: Employed by Electro Metallurgical Co. as assistant to the superintendent of its metallurgical plant at Niagara Falls, N. Y., in an administrative capacity. Leo Halpern Recent employment experience: January 15, 1951, to March 15, 1951 (March 15, 1951, to date on 2-day per week basis): Consultant to Metals Branch, Office of Price Stabilization, on lead, zinc, tin, also lead, zinc, copper, and nickel scrap, formulating specific price regulations. Inasmuch as the greatest increase in price has occurred in scrap metals, the major portion of my time to date has been devoted to this field. December 1922 to date: Federated metals division of American Smelting & Refining Co. Present position, assistant to president, in charge of formulating policies in reference to sales and purchases of all nonferrous metals and alloys. Carl K. Lenz Recent employment experience: March 28, 1951, to date: President and sales manager, Kennecott Sales Corp. (Kennecott Copper Corp.). January 15, 1951, to March 27, 1951: Acting Chief, Copper and Brass Mill Products Section, Metals Branch, Office of Price Stabilization. Was on leave for this period from Kennecott Copper Corp., 120 Broadway, New York 5, N. Y. October 1, 1949, to January 15, 1951: President and sales manager, Kennecott Sales Corp., a wholly owned subsidiary of Kennecott Copper Corp. In this position responsible for the sale of all copper, both electrolytic and fire refined— produced from the United States and Chilean mines of Kennecott Copper Corp. January 1, 1937, to October 1, 1949: Vice president and assistant sales manager of Kennecott Sales Corp. In this capacity was responsible, under the direction of the president of this corporation, for sales as described above. April 15, 1919, to January 1, 1937: Was employed by Chase Brass & Copper Co., Inc., one of the large copper and brass rolling mill producers of copper and copper base alloys in forms of sheet, rod, wire, and tubing. During this approximately 18-year period, I was located in Cleveland, Ohio, in charge of mill sales in the middle west area of the United States. Chester R. Wasson Recent employment experience: 1939 to March 1941: Executive director, Midwest Research Council, St. Paul, Minn. (Public opinion and market research.) 1941: Economic statistician, Office of Production Management, Division of Research and Statistics, Military Requirements Division, Washington, D. C. (May-December) Statistician, War Department, Office of Chief of Ordnance, Washington, D. C. 1942: Economist, Copper and Zinc Divisions, War Production Board. 1943 (to July): Economist, War Department, Army Air Force, matériel, maintenance, and distribution. July 1943 to October 1945: In the United States Army. October 1945 to December 1945: Research consultant, Chicago, Ill. January 1946 to June 1949: Senior market analyst, Spiegel, Inc., Chicago, Ill. July 1949 to January 1951: Marketing research analyst, Department of Agriculture, Production and Marketing Administration. January 1951 to date: Economist, Office of Price Stabilization, Metals Branch. 82354-52-12 Mr. REGAN. Are there any questions on the part of the committee members? PRICE CEILINGS AS DISTINGUISHED FROM PRICE FREEZES Mr. ENGLE. Mr. Ewing, how many price ceilings do you have in the mineral and metal field? Mr. EWING. At the present time? Mr. ENGLE. Yes. Mr. EWING. We actually have only one issue, that is on iron and steel scrap. We have, I suppose, 10 orders which should be issuedwe have gathered the data for them, the orders are really in their final stages; we just are held up because of a lack of legal assistance and stenographic help. Mr. ENGLE. That is distinguished from the operation of the price freeze, is it not? Mr. EWING. Yes. We are removing all metals from the freeze by the means of tailored regulation which would apply more definitely to them. The freeze is not satisfactory. Mr. ENGLE. We are talking about two separate things when we talk about the ceilings and the freeze, aren't we? Mr. EWING. We are. Mr. ENGLE. As an illustration of what is meant by that, tungsten is frozen, isn't that right? Mr. EWING. Tungsten is frozen, but we have an order which is ready to be issued. As I say, may have been issued, establishing a $65 price per tungsten concentrates. That will be the second tailored regulation that we will issue. Mr. ENGLE. That is right. And you have a price freeze on tungsten now? Mr. EWING. We have a price freeze. Mr. ENGLE. That freezes the 5 major producers anywhere between $27 and $65, isn't that right? Mr. EWING. That is correct, sir, but when the tailored regulation is issued, then that will take the commodity out. Mr. ENGLE. I understand that, but the freeze went into effect the 26th of January. Mr. EWING. That is right. Mr. ENGLE. And over 2 months have gone by and the domestic tungsten producers are still under the price freeze. Mr. EWING. Yes. Mr. ENGLE. Mr. Segerstrom had his tungsten frozen at $27, has he not, and he can't sell a pound of it. Why is it that for a period of 2 months these people have been kept in the ridiculous position of having the tungsten prices frozen at prices ranging from $27 to $65? Mr. EwING. I think there were quite a few rises in the price of tungsten during the month of January. Apparently, if one company could operate at $27 at a profit, the only reason that he would be holding his price would be an anticipation of a higher price when we established our $65 ceiling. Mr. ENGLE. What happened in the case is that he got caught in the base period which you established on a contract with the Munitions Board, isn't that right? Mr. EWING. I think that that is correct, sir. Mr. ENGLE. There are only five major producers in the country and they all have a different price. Mr. EWING. But won't he still be held at his contract? You see, we are setting ceiling prices. Mr. ENGLE. I am not asking about that. Mr. Segerstrom hasn't sold any tungsten on the market for more than 2 months. I understand the RFC couldn't sell any of its tungsten, is that right? Mr. EWING. I wouldn't see why they couldn't. Mr. ENGLE. They didn't have a price. Mr. EWING. They didn't apply to us for a price. Mr. EWING. I am quite sure that it didn't come to our office, Mr. Engle. Mr. ENGLE. How about chrome, do you have that frozen as distinguished from the ceiling? Mr. EWING. You see, all of those items are frozen by the over-all freeze. Mr. ENGLE. They are what? Mr. EWING. They are all frozen by the freeze. We are doing every thing in our shop that we can to pull all of these items out from underneath the freeze on established tailored regulations, but I just don't have the necessary help to do it. Mr. ENGLE. The necessary what? Mr. EWING. The necessary help to do it. I don't have the necessary legal help and I don't have the necessary stenographers. Mr. ENGLE. I believe that lead was wasn't it? Mr. EWING. That is correct, sir. Mr. ENGLE. And copper at what? Mr. EWING. 2412. frozen around 17 cents, Mr. ENGLE. Do you know any copper that you can get at 2412? Mr. EWING. Copper seems to be in quite tight supply. I don't buy copper, but I know that Kennecott Copper is selling theirs at that. I think the majority of producers are selling at 242. Mr. ENGLE. Do you have any target date on when you are going to set these ceilings as distinglished from the freeze? Mr. EWING. I will put it this way to you, Mr. Engle. I have lost on every target date I have set. I mean, I thought that I would have a lot of these regulations issued, but, as I say, unfortunately, it hasn't been possible. Mr. ENGLE. Can you set a target date now? Mr. EWING. No, I can't. Mr. ENGLE. When are you going to get out of the woods on this tungsten situation? Mr. EWING. We are out now. We have a price. Mr. ENGLE. Have you fixed a price yet? Mr. EWING. It will be announced this afternoon. CHAIN OF COMMAND IN OPS FOR ACTIONS ON MINERALS AND METALS. Mr. ENGLE. After you get through making your decision where does it have to go? I want to find where you are on this totem pole of authority. Mr. EWING. Well, probably quite low down. Mr. ENGLE. We will concede that. Who is up above you? Mr. EWING. Above me it has to clear at the present time with Murray Smith. Mr. ENGLE. I am trying to determine your position on this totem pole of the places that dominate this massive structure that we have set up to do this job for the defense industry. Mr. EWING. As I explained to you in my first statement, I am Chief of the Metals Branch. The Metals Branch comes under the Manufactured Goods Division. That reports directly to the Assistant Administrator. Mr. ENGLE. Who runs the next section? Mr. EWING. The Director of the Division, Mr. Murray Smith. Mr. Murray Smith reports to Mr. Ed Phelps and Mr. Ed Phelps reports to Mr. Mike DiSalle. Mr. ENGLE. Mike, himself. Who does Mike report to? Does he have unabridged authority in setting these ceilings? Mr. EWING. That would be a score that I really wouldn't be able to answer, I feel. Mr. ENGLE. You never got up the totem pole high enough to find out what happens up there with Mike DiSalle, is that it? Mr. EWING. I assume he probably has as many problems as I do. Mr. ENGLE. As I get the picture, you are bottom man on the totem pole; above you is Smith, Phelps, and then Mike DiSalle? Mr. EWING. That is correct. Mr. ENGLE. When you get all through setting the ceiling or agree on it it has to go up the line? Mr. EWING. That is correct. Mr. ENGLE. You have no power to make any decision yourself! Mr. EWING. I haven't had any decision come back to me. I will put it that way. It doesn't take any time after it leaves our shop to get them cleared. Mr. ENGLE. As a matter of fact, you haven't sent any up, have you? Mr. EWING. I am talking about your tungsten order. Mr. ENGLE. Where is that, has that cleared with DiSalle yet? Mr. ENGLE. Why isn't it issued then? Mr. EWING. Well, you have a certain amount of Government regulation which requires a certain length of time. Mr. ENGLE. That is what I am talking about and trying to get rid of some of it. I don't understand if DiSalle has the power why the order hasn't come out of there. Mr. EWING. I assume it will come out. We are trying, as I say, to push it out today. Mr. ENGLE. What I am trying to find out, does it have to go into Wilson's office? Does he have a staff level that takes care of it? Mr. EWING. No; when it passes DiSalle's office it is issued. Mr. ENGLE. What about Eric Johnston, does he have anything to do with prices at all? Mr. EWING. That is too far up the ladder for me to answer. Mr. ENGLE. That is up in the rarified atmosphere where these things get lost, as far as you are concerned, is that right? Mr. EWING. No |