The 22d Congressional District depends heavily upon the coal industry for the general welfare of the populace. We normally produce more than 20 percent of Pennsylvania's entire output of bituminous coal. In 1951 our 22,146 miners produced a total of 25,700,000 tons of coal. Because of our reliance upon east coast markets, our losses to foreign residual oil were greater than the State's overall production decline of 18 percent in 1952. And with imports deluging the east coast since January of this year, the distress in our area has reached alarming proportions. As 83 percent of the coal produced in the 22d Congressional District. is shipped by rail, there have been equally damaging effects on railroad employment. And as in the case of coal mines forced to shut down because of unfair competition from abroad, adequate transportation equipment cannot be expected if the enemy should suddenly strike and bring all-out war to America. Mr. Chairman, why are these conditions tolerated? How long must our men remain unemployed because of the idiotic theories of State Department officials who know nothing-and apparently care nothing-about the frightful situation that has developed out of that Department's tragic trade treaties? One of the most ridiculous arguments advanced by opponents of H. R. 4294 is that a limit on residual oil imports would create hardship in Venezuela, which is the source of most of the oil that finds its way into this country. You have heard this hypothesis refuted by earlier witnesses, but there is one point which I should like to make on this subject that I believe will be of interest to this committee. The population of Venezuela, according to the 1950 census reported in the current edition of the World Almanac, is 4,985,716. Now, as you are no doubt aware, in the past several weeks 22 Members of the House of Representatives from coal-producing States east of the Mississippi River have introduced bills providing for the quota restriction on residual oil imports contained in H. R. 4294. În introducing these measures, we have shown that the economy of our districts has been severely damaged and that our constituents are unable to buy the necessaries of life as a result of the loss of markets to this foreign waste product. I have checked the March 1953 edition of the Congressional Directory, and I find that there is a total population of 7,635,791 in these 22 Congressional Districts. Mr. Chairman, who is willing to turn his back on more than 712 million American citizens rather than risk the chance of disturbing the economy of less than 5 million Venezuelans? The constituents of these 22 districts are hoping that the answer to their pleas will soon be forthcoming, and it is for this reason that we have come before this committee to ask your enthusiastic support of H. R. 4294. Thank you for your attention. The CHAIRMAN. We thank you very much for your appearance and the information you have given the committee. We will now hear from the Honorable Tom Pickett, executive vice president, National Coal Association, Washington, D. C. We are delighted to have you here, sir. STATEMENT OF TOM PICKETT, EXECUTIVE VICE PRESIDENT OF THE NATIONAL COAL ASSOCIATION, WASHINGTON, D. C. Mr. PICKETT. Thank you, Mr. Chairman. My name is Tom Pickett. I am executive vice president of the National Coal Association with offices in the Southern Building, Washington, D. C. The National Coal Association is the trade organization of the bituminous coal mine owners and operators in the 28 coal-producing States of the Nation. We speak for more than 65 percent of the commercial bituminous coal production in the United States. My purpose in appearing today is to express the unanimous views of the bituminous coal mine owners and operators with respect to the Simpson bill, H. R. 4294. Generally speaking, we endorse the princi ples contained in H. R. 4294, but particularly support section 13 (a) (2) of the bill. That section provides a 5-percent quota limitation upon the importation of foreign residual fuel oil. The bituminous coal industry has suffered incalculable damage by the inroads against its legitimate markets due to the excessive imports of foreign residual fuel oil since 1948. In 1949, such imports increased 40 percent over the previous year. The problem was so serious that in 1950, committees in both Houses of the Congress initiated investigations to determine the extent that foreign-oil imports were contributing to unemployment in the United States. More than 50 witnesses representing coal, railroad, labor, and small business interests appeared before the committees and presented testimony showing the great damage resulting from unrestricted importations of residual fuel oil. Your particular attention is directed to the report of the Committee on Labor and Public Welfare of the Senate (Rept. No. 2042), which concludes from the evidence presented that residual fuel oil imports were harmful to the coal and railroad industries, as well as the employees dependent thereon. The outbreak of war in Korea interrupted further action at that time. In 1950 residual oil imports rose from the 1949 figure of 75 million to 120 million barrels, and continued at about that level in 1951. In 1952 they jumped to another alltime high of almost 129 million barrels. The effect of this ever-increasing flood is so disastrous that the problem was the subject of intensive study by the Natural Resources Committee of the National Coal Association. Upon the recommendation of that committee, after careful consideration, the executive committee of the association adopted a resolution on January 27, 1953, calling upon Congress to provide for "an adequate quantitative limitation on imports of foreign residual fuel oil." I offer a copy of that resolution for the record, and ask that it be inserted therein. The CHAIRMAN. Without objection, it is so ordered. (The resolution referred to follows:) NATIONAL COAL ASSOCIATION RESOLUTION OF RESIDUAL OIL IMPORTS Adopted by the executive committee of the board of directors of the National Coal Association at a meeting held in Washington, D. C., January 27, 1953 Whereas the bituminous-coal industry has played an indispensable role in the development of our great American economy; and Whereas the bituminous-coal industry provides employment for hundreds of thousands of miners, transportation workers, and related service employees; and Whereas incalculable damage has been inflicted on the bituminous-coal industry through closing of existing mines and permanent loss of valuable coal already developed, on employment, and on the Nation's economy because of unrestricted importations of residual fuel oil from foreign sources; and Whereas existing tariffs as well as trade-agreement legislation and policies afford wholly inadequate protection for this important domestic industry; and Whereas the flood of foreign residual fuel oil continues unabated, and promises to increase, thereby threatening further loss of employment in the United States, impairment of the bituminous-coal industry, and unwise dependence on foreign sources of fuel, contrary to the best interests of the Nation; and Whereas the maintenance of a strong domestic bituminous-coal industry is essential to the Nation's defense, security, and welfare; and Whereas the public interest requires a sensible adjustment of foreign residual fuel oil imports through appropriate congressional action: Now, therefore, be it Resolved, That in the light of the foregoing premises, the executive committee of the board of directors of the National Coal Association, in meeting assembled this 27th day of January 1953, urges the Congress to provide for an adequate quantitative limitation on imports of foreign residual fuel oil; and be it further Resolved, That the officers of National Coal Association are hereby authorized and directed to take appropriate action to secure adequate congressional relief and to acquaint the public with the dangers inherent in a policy of unrestricted importations of foreign residual fuel oil. Mr. PICKETT. Thereafter, there was convened in Washington a meeting of more than 100 representatives of bituminous coal and anthracite producers, wholesalers and retailers, mineworkers, railroad management, railroad labor, independent oil, small business, and other industrial and agricultural groups, known as the Foreign Oil Policy Conference. Loffer for the record a list of the industry and labor representatives who were elected as members of the executive committee of the Foreign Oil Policy Conference in order to effectuate its aims and purposes, and I ask that it be inserted at this point. The CHAIRMAN. Without objection, it is so ordered. (The list referred to follows:) FOREIGN OIL POLICY CONFERENCE-EXECUTIVE COMMITTEE R. E. Snoberger (chairman), president, Truax-Traer Coal Co., 230 North Michigan Avenue, Chicago, Ill. (Chairman, NCA Natural Resources Committee.) Martin J. Alger, vice president, New York Central System, 230 Park Avenue, New York, N. Y. F. S. Baird, vice president, Norfolk & Western Railway, Roanoke, Va. George J. Burger, vice president, National Federation of Independent Business, Washington Building, Washington, D. C. Frank W. Earnest, Jr., president, Anthracite Institute, Wilkes-Barre, Pa. C. A. Hamill, president, Sycamore Coal Co., Huntington, W. Va. Otto Herres, vice president, Combined Metals Reduction Co., 218 Felt Building, W. D. Johnson, vice president and national legislative representative. Order of Thomas Kennedy, vice president, United Mine Workers of America, 15th and I Jonas A. McBride, vice president and national legislative representative, Brotherhood of Locomotive Firemen and Enginemen, 10 Independence Avenue SW, Washington, D. C. C. J. Potter, president, Rochester & Pittsburgh Coal Co., Indiana, Pa. James N. Sherwin, president, American Coal Sales Association, Leader Building, Cleveland, Ohio. 0. R. Strackbein, chairman, National Labor-Management Council on Foreign Trade, 815 15th Street NW., Washington 5, D. C. B. E. Urheim, executive secretary, American Retail Coal Association, 858 First National Bank Building, Chicago, Ill. Mr. PICKETT. The following policy statement was adopted at the March 4 meeting of the conference: The rising tide of foreign residual fuel oil imports poses a critical threat to the basic industries of this Nation and those employed therein. This excessive importation jeopardizes the military and domestic economy of the Nation This overall and continuing adverse impact of foreign residual fuel oil importations requires immediate action by the Congress. The prejudicial effect of this oil importation has been felt on national, State, and local levels, governmental and industrial, and accordingly it is agreed that all interests should immediately consolidate their efforts with a view to securing prompt remedial action by the Congress. We who are present pledge ourselves to effectuating these purposes. Concern over the foreign residual fuel oil problem has become so great that 24 Members of the Congress have introduced bills provid ing for a quantitative limitation on such imports. I submit a list of those for the record, and ask that it be included at this point. The CHAIRMAN. Without objection, it is so ordered. (The list referred to follows:) SPONSORS OF LEGISLATION TO LIMIT IMPORTATIONS OF FOREIGN RESIDUAL FUEL OIL INTO THE UNITED STATES Senator John Sherman Cooper (Republican), Kentucky- Congressman Cleveland M. Bailey (Democrat), West Virginia, 3d Congressman Howard H. Baker (Republican), Tennessee, 2d District. Congressman Robert C. Byrd (Democrat), West Virginia, 6th District. Congressman James S. Golden (Republican), Kentucky, 8th District Congressman Thomas E. Morgan (Democrat), Pennsylvania, 26th Bill No S. 1092 H. R. 2870 H. R. 2917 H. R. 2922 H. R. 2924 H. R. 2927 H. R. 2951 H. R. 2957 H. R. 2966 H. R. 2967 Congressman Robert H. Mollohan (Democrat), West Virginia, 1st Congressman Carl D. Perkins (Democrat), Kentucky, 7th District___ H. R. 2973 Congressman John P. Saylor (Republican), Pennsylvania, 22d District____ H. R. 2983 Congressman Edward J. Bonin (Republican), Pennsylvania, 11th H. R. 3061 Congressman Melvin Price (Democrat), Illinois, 25th District__- H. R. 3092 H. R. 3098 Congressman Carl Elliott (Democrat), Alabama, 7th District__ Congressman Will E. Neal (Republican), West Virginia, 4th District_ Congressman Wm. G. Bray (Republican), Indiana, 7th District. H. R. 4321 Mr. PICKETT. We are particularly glad to note that the same limitation principles contained in those bills are to be found in section 13 (a) (2) of the Simpson bill which is now under consideration. H. R. 3169 H. R. 3176 H. R. 318 H. R. 3317 H. R. 3912 It is my purpose to demonstrate that legislation is the only effective answer to the problems facing the industries adversely affected by excessive residual oil imports. Statements to the contrary notwithstanding, there are no effective administrative remedies available to us. In his testimony, the Secretary of the Interior said— Neither the coal industry, nor the petroleum industry, nor the lead and zinc industry has taken advantage of [the] escape clause mechanism— provided in the Trade Agreements Extension Act of 1951. Others have raised the same question. While it is true that relief could be sought through Tariff Commission procedures, it is more important to understand that no relief could be obtained that would in any way represent a solution to our problem. First, Tariff Commission investigations usually require 1 year to complete, whereas it is imperative that we secure immediate remedial action. Second, since President Truman, in making the 1952 trade concession to Venezuela, made the determination that the tariff rate in effect as of January 1, 1945, was 10 cents, the Tariff Commission would be limited by law to recommending an amount 50 percent above that figure, a total of 1534 cents. That amount is wholly inadequate to afford the necessary protection. Third, even if full restoration of the 1932 rate of 21 cents were possible, it would not solve our problem because the foreign oil producers and importers can absorb that amount without noticeable effect upon either the price or volume of imports. Fourth, language in the present law makes it impossible for us to justify action by the Tariff Commission because the escape clause remedy must be predicated upon a showing that the damage results from the trade concession complained of. The damage we have suffered has not been due to a trade concession, as such, but is the result of the great volumes of imports which have been flooding the country since 1948, irrespective of whether the applicable tariff rate is 514 cents, 1012 cents, or 21 cents. It is obvious, therefore, that legislation is the only answer. Special legislative action has been necessary to protect the sugar, dairy, cotton, and wheat producing industries. The Congress thus determined that Tariff Commission procedures were not adequate to protect those industries. We are confident the facts of our case merit the same congressional consideration as that granted those other vital segments of the national economy. Therefore, the question raised by Secretary McKay really answers itself-the coal, petroleum, lead and zinc industries have not availed themselves of the so-called administrative remedies because they are of no practical value to these industries. The record of the 1950 hearings before the Neely subcommittee of the Senate Committee on Labor and Public Welfare, and the Steed subcommittee of the House Committee on Education and Labor, contain extensive factual data showing the injurious impact of foreign oil imports upon the economy of the United States. The problem was serious then. It is far more so now. That will be demonstrated by the testimony of management and labor spokesmen from the industries affected. They will give you the details on the economic impact of excessive imports, outline specific damage done to the indus |