HEARINGS

BEFORE

SUBCOMMITTEE NO. 3

OF THE

SELECT COMMITTEE ON SMALL BUSINESS

HOUSE OF REPRESENTATIVES

EIGHTY-FOURTH CONGRESS

FIRST SESSION

PURSUANT TO

H. Res. 114

A RESOLUTION CREATING A SELECT COMMITTEE

TO CONDUCT A STUDY AND INVESTIGATION

OF THE PROBLEMS OF SMALL BUSINESS

MAY 17, 18, 19, 23, 24, 25, JUNE 21, AND SEPTEMBER 29, 1955

PART I

Testimony Concerning Shortages and Related Matters

70669

Printed for the use of the Select Committee on Small Business

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON 1956

SELECT COMMITTEE ON SMALL BUSINESS

JOE L. EVINS, Tennessee

WRIGHT PATMAN, Texas, Chairman

ABRAHAM J. MULTER, New York

SIDNEY R. YATES, Illinois

TOM STEED, Oklahoma

JAMES ROOSEVELT, California

WILLIAM S. HILL, Colorado

R. WALTER RIEHLMAN, New York

HORACE SEELY-BROWN, JR., Connecticut

WILLIAM M. MCCULLOCH, Ohio

TIMOTHY P. SHEEHAN, Illinois

EVERETTE MACINTYRE, Staff Director and General Counsel

WM. SUMMERS JOHNSON, Assistant Director and Chief Economist

MARIE M. STEWART, Clerk

JANE M. DEEM, Administrative Assistant

GEORGE L. ARNOLD, Assistant Counsel

IRVING MANESS, Assistant Counsel

JUSTINUS GOULD, Assistant Counsel

KATHERINE C. BLACKBURN, Research Analyst

CLARENCE D. EVERETT, Investigator

VICTOR P. DALMAS, Assistant to Minority Members

SUBCOMMITTEE No. 3

SIDNEY R. YATES, Illinois, Chairman

TOM STEED,1 Oklahoma

TIMOTHY P. SHEEHAN, Illinois

ABRAHAM J. MULTER,2 New York

EVERETTE MACINTYRE, Staff Director

WM. SUMMERS JOHNSON, Chief Economist

MARIE M. STEWART, Clerk

GEORGE L. ARNOLD, Subcommittee Counsel

KATHERINE C. BLACKBURN, Research Analyst

SAM MOMENT, Consulting Economist

1 Served on subcommittee during course of hearings.

2 Has served on subcommittee since the hearings.

II

CONTENTS

Page

Statement of-

Anderson, Dewey, director, Public Affairs Institute, Washington,

D. C...

Borton, John C., director, Office of Export Supply, accompanied by
John H. Kilby, director, materials division; and Virginia Torosan,
chief, non-ferrous metals division, Bureau of Foreign Commerce,
Department of Commerce_.

Burton, Carl H., secretary, Aluminum Smelters Research Institute,
Chicago, Ill_

39

276

106, 112

Champion, M. H., chairman of the board, Ark Manufacturing Co.,

Oklahoma City, Okla.......

Davis, Nathanael V., president, accompanied by E. G. MacDowell,

director and vice president, Aluminum, Ltd., Montreal, Canada-----

Edmund, William J., director, aluminum and magnesium division,
BDSA; and Arthur A. Snow, assistant director, aluminum and
magnesium division, BDSA_

85

142

394

Elliott, Maxwell H., and A. J. Walsh, General Services Administra-

tion, accompanied by Byron Harding_.

Letters submitted__

173

177

Emmerglick, Prof. Leonard, Georgetown University Law School, Wash-
ington, D. C..

5,26

Erskine, H. C., director; accompanied by A. A. Snow, assistant direc-

tor; and M. Bailkin, chief statistician, aluminum-magnesium

division, BDSA, Department of Commerce_

207

Katz, Robert, Badger Aluminum Extrusions, Brooklyn, N. Y.
Lemelman, Phillip, executive secretary, Aluminum Extruders Council,
Boston, Mass.

138

127

Magee, William, accompanied by Howard Greenberg, General Services

Administration

384

May, Doyle N., May, Inc., Houston, Tex..

81

Medley, Max, comptroller, General Services Administration__

O'Toole, Hon. Donald L., director of commerce and industry, New York

State

383

3

Pickens, Richard, Dallas, Tex-

Representatives of industrial companies and Government agencies

participating in conference:

E. A. Bergman, president, United States Reduction Co., East

Chicago, Ind.; Everett Fahlman, Permold Co., Box 70, Medina,

Ohio; L. M. Brile, chairman, sheet and plate division, Alumi-

num Association, Fairmont Aluminum Co., Fairmont, W. Va.;

R. P. Stranahan, chairman, foil division, Aluminum Association,

Stranahan Foil Co., 100 Wesley Street, Hackensack, N. J.; R. W.

Goss, chairman, rolled bar and rod and wire division, Aluminum

Association, Scoville Manufacturing Co., Waterbury, Conn.;

Lothair Teetor, Assistant Secretary of Commerce for Domestic

Affairs, Department of Commerce, Washington, D. C.; Carl

Burton, secretary, Aluminum Smelters Research Institute, 20

North Wacker Drive, Chicago, Ill.; John Doering, J. S. Thorn

Co., Philadelphia, Pa.; Philip Lemelman, executive secretary,

Aluminum Extruders Council, Boston, Mass.; James W. Wolfe,

Non-Ferrous Foundries Association, 192 North Clark Street,

Chicago, Ill.; David Laine, American Die Casting Institute, 366

Madison Avenue, New York, N. Y.; M. D. Wilmot, vice president

Aluminum Company of America, Pittsburgh, Pa.; M. M.

Caskie, Reynolds Metals Co., Richmond, Va.; D. A. Rhoades,

92