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House of Representatives, Washington, D. C. MY DEAR CONGRESSMAN: Referring to our discussion of the status of ownership or control of Gunnison Homes, Inc., during the hearing before the House Judiciary Committee Tuesday morning, April 18, I have checked this matter with our records and find the facts appear to be as follows:

The United States Steel Corp. acquired what was stated to be a substantial interest in the Gunnison Housing Corp., New Albany, Ind., in June 1944. The corporation was later renamed Gunnison Homes, Inc. It is stated in the annual report of United States Steel Corp. for 1944 that through the medium of Gunnison "United States Steel expects to further the use of steel in residential construction after the war."

A registration statement filed by United States Steel Corp. on May 2, 1949, shows that the corporation was then the owner of 70 percent of the voting stock of Gunnison Homes, Inc. The annual report of the corporation for 1949 also shows Gunnison Homes, Inc., as a subsidiary of United States Steel. We have received no later information that would indicate any subsequent change in ownership of Gunnison Homes, Inc. Hence, it would appear, as I stated in my testimony before your committee, that Gunnison Homes, Inc., is largely owned and controlled by the United States Steel Corporation. Sincerely yours,

JAMES M. MEAD, Acting Chairman.


Recapitulation of Minnesota iron shipments, direct shipping and beneficiated ores by railroads,

also 1945 shipments



96347–50—ser. 14, pt. 4b3

11,361, 675
11, 315, 070
22,676, 745

37, 309, 733

Mesabi Range:
1-Great Northern:

Direct shipping ores.
Beneficiated ores.

2-Duluth Missabe:

Direct shipping ores.
Beneficiated ores.

Total both roads:

Direct shipping ores.
Beneficiated ores.

Total range.
Vermilion Range:
Duluth Missabe:

Direct shipping ores..
Beneficiated ores.

Total range..
Cuyuna Range:
Northern Pacific and Soo Line: 1

Direct shipping ores.-
Beneficiated ores.

Total Minnesota:

Direct shipping ores.
Beneficiated ores.

1, 538, 560

1 Starting with year 1937 all ore shipments from Cuyuna Range were as far as practicable, divided on basis of 50 percent to Northern Pacific and 50 percent to Soo Line Railroads. therefore, beneficiated ore shipments would in effect be divided equally between the two carriers.

Includes shipments from Fillmore County, 1943, 220,427 tons; 1942, 59,171 tons; 1941, 47 tons.


Butler Brothers-Comparative 1944 and 1946 Lower Lake base prices of Mesabi

non-Bessemer 51.50 natural iron; summary of costs for 1944 compared with July 1946, designed to show that the 60-cent increase in ore prices, from 1941 to July 1946, has been consumed in added production costs

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1 Average wage rate in 1944 was $1 per hour so 1844 per hour increase equals 1844 percent.
: Actually there will be a slight increase in insurance.
• Increase in depreciation due to higher cost of equipment in 1945 not reflected.
* Royalty rate increases with increased mine value of iron ore, contract provision.
. (See the following):

Increase in occupation tax (occupation tax labor credit was decreased by State legislation

in 1945 causing a large increase in tax).
Increase in royalty tax...
Increase in payroll tax..
Increase in ad valorem tax..

$0.044 .017

010 0


Tons crude ore mined in 1944.
Tons beneficiated ore produced (recovery 47.23 percent)..
Tons merch, ore produced..

3,726, 754
1, 760, 06€



Butler Bros. comparative 1944 and 1946 lower lake base price of Mesabi non

Bessemer 51.50 natural ironSummary of costs for 1944 and 1946 MB E. A. Wisco: You asked me what effect our 1946 experience had on the figures I gave you July 23, 1946, which showed what our 1944 costs would have been, based on subsequent increases in cost of labor, supplies, and other items and you also asked for a statement of our actual 1946 costs, which vary from the comparative because of variations in tonnage produced, sales contracts, and recovery from crude ore mined. The following figures show the information requested.


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Production data:

Total tons of crude ore mined..
Mercbantable ore produced.
Concentrates produced..
Recovery percentage...

3, 726, 754

0 1, 760, 069

47. 23

83,580, 252

0 : 1, 521, 342

42. 61

1 10 months actual cost plus 2 months estimated costs.
: April 1947 production estimated at 140,000 tons of concentrate at 50 percent recovery.

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