of industry representatives, including spokesmen for the small-mine operators of the region, for the largest mine operating in the tristate area, and for union workers both in the mines and in the related mills and smelters.

In one of the mines, I interviewed more than a dozen workers on the job in different phases of the mining operation.

I rate the overall situation in the tristate area as crucial on several counts: (1) A majority of the mines normally operated in the area and engaged in zinc and lead mining are now shut down. Many of the smaller mills are also shut down. Exact numbers will be supplied in thenear future.

(2) Several thousands of miners and millworkers have either been thrown into unemployment or into other lines of work, in many cases out of the tristate area. Unemployment compensation figures for the region fail completely to reflect the true picture.

(3) Miners remaining on the job in the few operations still going-including the area's largest mine-have seen their hourly pay drop an average of 47% cents in the last 6 months. This is due to the pegging of their wage scale to the price of zinc, which has fallen from the OPS ceiling price of 191⁄2 cents a pound to 11 cents a pound (far below actual cost of production for most operations in the tristate region).

(4) Most of the shutdown mines of the area are in constant danger of flooding, and must be pumped at high cost even while not operating (I talked with one operator, whose mine employs 130 men at full production and has been shut down since February, whose pumping cost alone totals $5,000 a month while not operating). Experts state that vast quantities of valuable ore will be lost to the Nation if flooding takes place, but operators advise they cannot afford to continue pumping many shutdown mines for additional months without operating income.

(5) Value of the tristate mines cannot be measured in terms of quantitative production alone (although the region has been the Nation's most consistently rich source of zinc for decades). As one of the few world sources of Prime Western ore, which has highly specialized uses in industry, the region is doubly important to the zinc production of the country.

(6) Lead-so essential to defense in the atomic age can only be mined efficiently in the area as a byproduct of zinc. Valuable lead ores are endangered. (7) The region has additional important utility to America's war potential, by virture of its relatively protected inland location, as well as the proximity of some of the Nation's greatest smelters, in Oklahoma and Kansas. This is an added reason why it must not be allowed to flood or be destroyed through economic disaster which would lose to the Nation the mining organization, skills, and equipment which might be vital in event of all-out war.

Industry representatives could undoubtedly add another dozen grounds for a "crucial" classification of the Tri-State region today.

What is the reason for crisis in the zinc industry, particularly in Oklahoma and the tri-state area?

A prime reason is undoubtedly mounting foreign imports, totaling over 450,000 tons in 1952. Representative Metcalf of Montana has pointed out that this import total is 49 percent above the 1951 figure, and the greatest tonnage brought into our country since 1943, during our peak war effort. Latest figures of United States Tariff Commission for 1952 shows a total zinc import of 639,000 tons, of which 599,000 tons were free; exports were 62,000; net-637,000 tons.

A tragic feature of the import situation is the fact that our country has stimulated these imports, through "floor plan" contracts of our Defense Minerals Procurement Agency under which our Government guarantees on foreign imports from some developments in Mexico, Peru and other foreign countries, prices 5 or 6 cents a pound above the prevailing United States market price on zinc. Some of these contracts still have 3 or 4 years to run.

Other reasons for the current crisis undoubtedly include temporary stockpile excesses in the industry early this year, arising in part from the steel strike of last year. Dumping of British surpluses of zinc has been reported a big factor.

Whatever the reasons, it is obvious that some solution must be found to save the situation.

I was pleased to find in Oklahoma, among representatives of both management and labor, a reluctance to urge further subsidies from the Government as an answer. Subsidies are regarded as an undesirable last resort.

Nor was it felt that further Government stockpiling will meet the tremendous problem, although some action along this line would undoubtedly help bolster

zinc prices-especially if restricted to domestic concentrates or metals made from domestic ores.

The proposal for a variable tariff, or so-called "sliding tariff," appeared to most representatives of the industry the most promising long-term solution to the problem.

Under this proposal, as discussed in our Oklahoma meetings, the tariff would vary with supply and market conditions of lead and zinc, being tied to a base price of somewhere between 14 and 16 cents on zinc, and imposing a sufficient duty on imported zinc to offset any price drop below this base.

It was the consensus of most of the small mine operators that zinc prices of approximately 16 cents were essential to profitable operation in their area.

They were particularly indignant-and rightfully so-that DMPA floor plan guaranties were providing that kind of return to foreign zinc mine operators, and not to them. Operator after operator told me of unsuccessful attempts to secure floor plan contracts for mine development in the Oklahoma area. This floor plan guaranties were simply not available for Oklahoma mines, according to my information.

As its title indicates, this is not a conclusive report, nor is it a complete one, on the Oklahoma zinc problem. Additional information and documentation will shortly be available, and will be supplied to the Congress and the White House. Immediate action to meet this urgent problem, however-both on grounds of national defense and economic well-being-is so imperative that this preliminary report is being supplied.

It is hoped that leaders of our Government will respond with action.

Hon. ED EDMONDSON,

House of Representatives, Washington, D. C.

THE WHITE HOUSE. Washington, May 11, 1953.

DEAR MR. EDMONDSON: I have had an opportunity to look through the material enclosed with your recent letter. This preliminary report on zinc mining conditions in Oklahoma and the tristate area contains statements that impress me with the seriousness of this situation.

A strong domestic mining industry is vital to national security and to the continued prosperity of our country. I hope that the administration may find a way of relieving the depressed conditions that prevail within many mining districts.

That problem, of course, is one of determining what course of action may accomplish this purpose without endangering other policies essential to the security and economic welfare of this Nation and other free-world countries. We must find a solution that is equitable to all concerned and I am encouraging the Congress and agencies within the executive branch to work toward that end. The Department of Interior in particular has been asked to devote its energies in this direction.

Your initiative in personally conducting these investigations is to be commended, and I hope that further enlightenment on his vexing problem will result. I will be glad to receive further facts as they are developed. Sincerely,

DWIGHT D. EISENHOWER.

The CHAIRMAN. Thank you very much for your very excellent statement.

(The following letter was later received from Mr. Edmondson:) CONGRESS OF THE UNITED STATES,

Hon. DANIEL A. REED,

HOUSE OF REPRESENTATIVES, Washington, D. C., May 22, 1953.

Chairman, Committee on Ways and Means,
House of Representatives,

Washington 25, D. C.

MY DEAR COLLEAGUE: On the recent occasion of my testimony before your committee during its hearings on the Simpson bill to impose limitations or establish variable tariff rates on foreign imports of oil and certain basic minerals, it was my understanding that you had already concluded your hearings on oil imports. For that reason, I confined my testimony on that date to the lead and zinc section of the Simpson bill.

On the basis of information which I have received from responsible leaders of oil exploration in my district I am convinced that there is also an urgent need for the oil import limitations provided in Congressman Simpson's measure. The tremendous increase in foreign imports of petroleum has already led to substantial reductions of crude production in our country, and further cuts in domestic production will be necessary during the coming months unless imports are restricted. As the Independent Petroleum Association of America has pointed out, this means less income to the domestic industry, less drilling, less reserves found, and less productive capacity. In short, less security as to oil. I will consider it a personal favor if you will take these views into consideration in connection with your committee's final decision on the Simpson bill, and it will be deeply appreciated if this letter can be made a part of the record of hearings on that bill.

With best wishes and kindest personal regards,

Sincerely yours,

ED EDMONDSON, Member of Congress.

The CHAIRMAN. I will now ask if the Honorable William A. Dawson is in the room?

We are delighted to have you here, sir, and we will be glad to hear your testimony.

Mr. DAWSON. I am glad to be here, Mr. Chairman.

The CHAIRMAN. If you will give your name and the capacity in which you appear for the record.

STATEMENT OF HON. WILLIAM A. DAWSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF UTAH

Mr. DAWSON. I am Congrssman William A. Dawson, Second District of Utah.

I have a prepared statement, Mr. Chairman. I have submitted some copies to the members of the committee.

Mr. Chairman, first of all I want to thank the members of the committee for giving me this opportunity of appearing in behalf of H. R. 4294. This bill holds out the hope of health to a sick and dying metal mining industry. The protection the law provides for the zinc and lead miner is needed immediately to relieve economic misery in thousands of homes in hundreds of mining communities. But, still more important, this protection is needed to maintain the productive capacity of this Nation.

I intend to keep this statement as brief as possible. But I also intend to take the opportunity to challenge some of the testimony which has been presented during the past few weeks before this committee.

Secretary of the Interior Douglas McKay, in his testimony before the committee, showed an honest concern for the present plight of the lead-zinc mining industry. But he questioned whether it is of such a nature as to justify using the term "ghost town" in describing some of our communities.

I wish the Secretary could visit our mining towns or had time to read my mail.

Let me tell the committee about Park City, Utah, which for more than half a century has poured its rich mineral deposits into the industrial bloodstream of the Nation. It has one industry-mining. It has one career employment-miners. It has one type of plant-a mine.

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Park City has been in trouble before. When industrial consumption of lead and zinc dropped to nothing in the depression, the mines closed.

But now consumption of these vital metals is at an alltime peak. Yet how has Park City fared since last June when foreign metalstheir production in some instances subsidized by the United States taxpayer-broke the lead-zinc price? I quote a typical letter-this from Father Patrick Cullen of Park City. There are a good many other letters that I am sure other witnesses can read, really to depict to you the plight of some of the communities in my district, and I think these witnesses will only add to what is said in this letter.

This is what Father Patrick Cullen has to say. By the way, he is a Catholic priest in that community. I quote:

Since then it has been a long period of dire distress for families, many of whom have moved away, abandoning homes they had bought through the years. Now Park City looks derelict--a ghost town, a shadow of its former self. It's a deserted village. Stores are smothered by debts because in lean times they give so much credit. Water and electric lines to houses have been taken up or cut off ***

That is Park City-once-great producer of vital strategic metals. It is the same story in nearly every lead-zinc mining town in the Nation. Almost a year ago, this country in effect started to export its lead-zinc mining industry. Unless early action is taken, we will never get it back.

Secretary of State John Foster Dulles also appeared before this committee. He made the following statement:

The present act (he refers to the present Reciprocal Trade Act) contains provisions which enable special measures to be taken to protect special situations such as may exist, for example, in relation to the lead and zinc industries.

I wish I could read into his statement the implication that he did admit there was a situation existing in the lead and zinc industry which needed attention. However, he did say "which may exist."

What are these provisions that Mr. Dulles cited as a ray of hope for the industry and its miners? I have written him, but as of this morning I have not received a reply. I assume, however, he was referring to the "peril point" provision in the present act. This protection is at its maximum 2.55 cents per pound on lead and 2.1 cents per pound on zinc. That is assuming that the "peril point" provisions were exercised and we got the maximum amount which could be allowed under the 1930 Tariff Act. That is not sufficient to alleviate the present crisis.

At this time I would also like to take an opportunity of cautioning the committee against being misled by certain self-designated spokesmen for the lead-zinc industry. I refer particularly to a telegram I received from the American Metals Co. of Illinois. And I am sure the same telegram was addressed to members of the committee.

After deliberately exaggerating the effect the passage of H. R. 4294 would have on the price of lead-zinc, the telegram states:

We join thousands of consumers of these metals in all industries in protesting against the proposed bills which would tend to restrict or entirely prevent importation of these vital metals.

This is nothing but bunk and hokum. The American Metals Co. speaks for the American Metals Co. Its concern is for its properties scattered throughout the world. This company received more in

dividends from South African mining companies that it listed as its operating income from wholly owned operations. According to its own annual report of 1952, it had 3,240 employees in the United States and 5,030 employees aboard-most of them miners in Mexico. This is self-interest speaking; not enlightened self-interest, just good, old-fashioned self-interest.

During the course of the long hearings on this bill, the chairman, Hon. Dan Reed of New York, has made the statement: "This country did not become great by exporting its payrolls." It has done that and more in the case of the lead-zinc industry. For here not only a payroll is involved. A continuation of the present law means that a vital strategic metal producing industry has been exported. Along with it goes our airplane plants, our armament factories, our bearing shops. For they, in effect, become as scattered throughout the world as the raw material producing industries upon which they depend.

The present law offers no relief to a very sick industry. Its future rests in the hands of Congress, and as a Member I do not intend to stand idly by and see it pass out of existence.

I thank you.

The CHAIRMAN. Does that complete your statement?

Mr. DAWSON. Yes, sir.

The CHAIRMAN. We thank you very much, Mr. Dawson, for your fine statement here.

Are there any questions?

Mr. SADLAK. Mr. Chairman, I would like to ask Mr. Dawson, how large a city was Park City?

Mr. DAWSON. It has a normal population of 5,000. At the present time it is down to about 2,200.

Mr. SADLAK. Thank you.

The CHAIRMAN. Mr. Dingell will inquire.

Mr. DINGELL. Mr. Dawson, I would like to ask you a question or two. Frankly, I confess being somewhat confused.

I have sat on this committee for many years. During the period of emergency-World War II, and since that time-we have been called upon by industry, manufacturers-and the mining industry agreed with it-to make concessions as regards the tariff on critically short supply of lead and zinc, time and again, and heard about the everlessening reserves of these metals in the United States, mining out, low-grade ores, and high costs of production.

We had to have batteries for our sixty-some million automobiles on the road, the new cars to be manufactured, the hundreds of thousands of miles of telephone cable, both above and underground, and a thousand and one other items that use that finished zinc or tin, or both, as an essential part of their industry.

Now suddenly the emergency is over, and we are going to tack on additional tariffs on foreign zinc and foreign lead. Just what can we expect of some of our neighbors, say, in Chile or other areas, from whence we get so much of our metal of the particular kind under discussion, when we make sharp outcries about the removal of tariffs, making concessions to stimulate this material being brought into this country, and then suddenly we want to keep them out.

I just cannot reconcile in my mind how you can make these pleas with these nations to supply this material, or how our manufacturers here can stand on one side one moment, arm in arm with the mining