EXHIBIT 113 QUARTERLY REPORT ON UTILIZATION OF BORROWING AUTHORITY UNDER SECTION 304 (b), DEFENSE PRODUCTION ACT, AS AMENDED Transactions consummated as of Sept. 30, 1951—Continued The program consummated involves purchase of 3,000,000 pounds at 19 cents per pound and resale at 17 cents per pound. Probable ultimate net cost based on 2 cents per pound for total quantity. 12, 715 Cost for storage, administration. and interest, amounting to $505,000, plus a cost of 4.07 cents per pound due to an expected drop in market price for the entire amount in inventory (300,000,000 pounds) will result in a total ultimate net cost incurred of $12,700,000. The money advanced for exploration is treated as unrecoverable, since the variable involved precludes any reliable estimate of recovery. Interest income assumed to offset expenses and loss. 1,074 Probable net cost computed as s of 1 percent of gross volume of transactions for pool order program based on World War II experience. Iron and steel: RFC. Direct loans.. 29, 864 60 2,448 Reporting agency Transactions consummated as of Sept. 30, 1951-Continued DMPA.. Purchase and resale.. Thousands Thousands The program consummated involves purchase of 5,235,000 pounds at average production cost estimated at 441⁄2 cents per pound and resale at market price of 241⁄2 cents per pound. Probable ultimate net cost to Government based on 20 cents per pound for full quantity. 965 The program consumated involves the purchase of 50,000 tons of ore at $19.30 per ton. The entire transaction is treated as probable ultimate net cost pending further determinations as to processing the ore. The consumated program involves the purchase of 37,500,000 long tons of marginal ore and processing it to produce commercial grade to be sold to defense contractors. Purchase and processing cost estimated at $87,550,000. Resale value at market price estimated at $45,750,000. The difference of $41,800,000 is probable ultimate net cost to the Government. The money advanced for exploration is treated as unrecoverable, since the variable involved precludes any reliable estimate of possible recovery. 41, 800 147 Transactions consummated as of Sept. 30, 1951-Continued volves a guaranty of market price on annual production of 141,120 pounds of tin and 1,400 short tons of tungsten concentrates. Contractor expanded facilities by private financing with 90 percent Government guaranty. Probable ultimate net cost is based on amount of guaranty as location of mine is susceptible to occupation by invasion. The money advanced for exploration is treated as unrecoverable, since the variable involved precludes any reliable estimate of possible recovery. Due to strong demand no loss on resale is anticipated. Total quantity will be sold to industry or stockpile with no ultimate net cost to borrowing authority. Interest income assumed to offset expenses and loss. The cost is based on $5,000 for administration, storage, and interest, plus a loss of 14.45 cents per pound on 1,568,340 pounds (purchases to date), based on expected price decline from 39.75 to 25.3 cents per pound. Entire amount of purchases to date are held in inventory. All production expected to go into national stockpile or sold to industry at not less than support price. Program consummated involves 119,797 short tons purchased in foreign market and resold at domestic market price. Probable ultimate net cost based on $10 per short ton. The money advanced for exploration is treated as unrecoverable, since the variable involved precludes any reliable estimate of possible recovery. Do. Program consummated involves 3,973 short tons purchased at 19 cents per pound and resold at 172 cents per pound. Probable ultimate net cost based on 12 cents per pound for the full quantity. Due to great demand for zinc it is not probable price will fall below 1712 cents per pound, the guaranteed price. Consummated program involves a guaranteed price of 17 cents per pound for 14,400 tons of slab zinc. Probable ultimate net cost is based on 25 percent of the differ ence between the pre-Koreas price of 13 cents per pound and the guaranteed price for 10,800,000 pounds which will be produced after June of 1954. DMPA.. Purchase and resale. 9,592 1, 198 Interior... Exploration, grants for, etc. 698 698 Uranium: Interior Zinc: DMPA... Exploration, grants for, etc. Purchase and resale.. 56 56 1,366 118 Transactions consummated as of Sept. 30, 1951-Continued Basis for determination Program consummated involves guaranteed price of 1732 cents per pound on 13,680 short tons. Probable ultimate net cost is based on market decline at some future date to average 211⁄2 centsper pound loss to the Govern-ment on the full quantity. Program consummated involves guaranteed price of $330 per ton for 20,000 short tons. Probable ultimate net cost is based on $6.30 per ton for the full quantity. Program consummated involves guaranteed price of 171⁄2 cents per pound on 5,000 short tons. Market price is not expected to drop below this price during term of contract, consequently no probable ultimate net cost. Interest income assumed to offset expenses and loss. RELATIONSHIP BETWEEN PRICE AND MINE PRODUCTION OF LEAD, ZINC, AND COPPER IN THE UNITED STATES [SUBCOMMITTEE NOTE.-The data in this exhibit, which includes (1) "Notes on Graphs on Copper and Zinc Graphs"; (2) a table showing "Lead and Zinc Production Trends"; (3) a graph on zinc price, mine production, and mine employment; and (4) a graph on copper price, mine production, and mine employment, were prepared by Dr. Chester R. Wasson, economist, Metals Branch, Industrial Materials and Manufactured Goods Division, Office of Price Stabilization; dated November 6, 1951] NOTES ON GRAPHS ON COPPER AND ZINC GRAPHS These graphs are intended to check the relationship between price and supply of these metals. Lead has not been graphed as yet, but the curves would be similar to zinc, since most of the supply of both lead and zinc is interdependent. In particular these charts are intended to reveal, if possible the price at |