General imports (receipts) of metallurgical and ceramic grades of fluorspar into the United States 1952, in short tons 1 3, 328. 64 Philadelphia... 12, 232. 16 Philadelphia.. Italy To Laredo. Arizona.. Arizona.. Arizona.. Arizona.. El Paso.. Arizona.. Arizona. El Paso.. Arizona. 3, 141.60 Grand total. 132, 870. 08 1 These tonnages, a total of 28,026.88 tons, come from Fluoruros, South America. 2 Less than 1⁄2 ton. Source: U. S. Department of Commerce, Foreign Trade Rept. No. 666 Bureau of the Census. The data and figures given above show the damage being inflicted on the domestic economy by the imports of foreign-produced fluorspar. It impairs the capital investment of the fluorspar industry, retards prospecting, exploration, and development of new fluorspar areas. Experienced engineers, miners, and concentrating men will be idle and the distress will extend to equipment manufacturers, supply houses, transportation industries and economy of the States and counties in which domestic fluorspar is produced. Imports in excess of our economic needs always result in confusion and disturbed economic conditions, as sales agents and foreign producers with costs much below American standards are tempted to sell their fluorspar for any price obtainable in order to get rid of it. On the basis of all the data, information and evidence given above, it is clearly shown that the continued excessive importation of foreign fluorspar is having a substantially injurious effect on the industry and economy connected with it. Reports have come quite recently to me that a new trade treaty has been, or is being negotiated between the United States and Mexico, in which the United States will agree to cut its duties on imported Mexican fluorspar to one-half of the present figures and Mexico will agree to cut its export duties on fluorspar to one-half of the present figures. The result will be that Mexican fluorspar, particularly the metallurgical grade will cost about $5 less to put onto the American market. Also railroad freight proposed SWFB, proposal 62916, dated January 6, 1953, provides for milling-in-transit arrangements at Rosiclare, Ill., and Marion, Ky., on carload shipments of fluorspar from Rio Grande River crossings from Mexico applicable on traffic destined to stations in central and truck-line territory, subject to a transit charge of 114 cents per 2,000 pounds subject to 175-B increase. The Southwestern Lines approved the proposal in February 1953, and it will be published in Illinois Central Railroad Tariff 98–J as outlined in proposal 62916. The effective date is May 1, 1953. The result will be that Mexican fluorspar moving to Rosiclare, Ill., and/or to Marion, Ky., for blending or other milling purposes will incur about $5.50 per ton less freight charges than obtain at present in moving over the same routes to the ultimate consumers in central and truck-line territory; this is simply another measure to deluge the domestic fluorspar industry with a flood of Mexican fluorspar imports. The fact that America is the most prosperous of nations has been made possible by business large and small making a profit, paying good wages and reinvesting for a prosperous future. In the interest of the Nation's economic welfare and security the need for prompt and decisive action is most urgent. In conclusion, permission is asked to file this report with the committee and it is further requested that this material be incorporated in the printed record of these proceedings. EXHIBIT B General import receipts of acid-grade fluorspar into the United States, 1953, in short tons 1 Less than 1 long ton. Source: U. S. Department of Commerce, Foreign Trade Rept. No. 666, Bureau of the Census. Mexico West Germany General import receipts of metallurgical and ceramic grades of fluorspar into the United States, 1953, in short tons Italy Spain Total 10,976.00 3, 410. 40 439.04 Arizona. 1, 377.60 Philadelphia. 474.88 3, 426. 08 Philadelphia. Maryland. 1, 144. 64 Philadelphia. 15, 674. 40 1953-January. February Subtotal.. 9, 289.76 1,377.60 Source: U. S. Department of Commerce, Foreign Trade Rept. No. 666, Bureau of the Census. 3,900. 96 2, 082. 08 26,650. 40 The CHAIRMAN. Thank you for a very fine statement. What is the grade of these imports in quality compared to what we are mining in the United States? Mr. CLOONAN. For metallurgical fluorspar, which is used in the steel industry, the purchase specification is 85 percent calcium fluorspar and 5 percent silica. For the acid grade which is used to manufacture aluminum, ninety-eight and a half and about 1 percent silica or impurity. The CHAIRMAN. How would that compare with your own that you are producing? Mr. CLOONAN. Well, it compares favorably. It is about the same. It is mined and concentrated and it has to be cleaned in to those grades before it is marketable or can be used by the industry. The CHAIRMAN. Let me see if I have this statement correct. Where you were talking about the percentage of increase where only 35 percent of our domestic fluorspar was shipped in from outside the United States in 1951, you said 70 percent. Mr. CLOONAN. Seventy percent was imported in 1952, which shows the increase in imports. The CHAIRMAN. But you did not show there what the increase was in the use of fluorspar in the United States. Did we increase the use of it any? Mr. CLOONAN. The use was not very much higher. The CHAIRMAN. In other words, what you mean by higher, the consumption remained practically the same? Mr. CLOONAN. The consumption remained practically the same. Mr. CLOONAN. That is right. The CHAIRMAN. Then the next question I have was on page 5. You make a very interesting statement there, about the middle of page 5, or near the bottom, when you mention a railroad freight proposal. But you do not say whether it has been concluded or not, or whether they have decided to give them that rate. Mr. CLOONAN. It says here the effective date is May 1, 1953. Mr. CLOONAN. It is on page 5. The CHAIRMAN. It is not any proposal, then. That word should be railroad freight decrease or increase. Mr. CLOONAN. It is a decrease; that is right. The CHAIRMAN. Did any of your group appear in Washington? The CHAIRMAN. That is the result you got? Mr. CLOONAN. That is right. The CHAIRMAN. Mexico is in bad shape financially, right? We tried to get some labor from down there and that is not the way they talked. We used to go 250 miles to pick them up and now they say we will have to go 900. We might have had a little reciprocity here if you had asked the Agricultural Committee. Mr. CLOONAN. Apparently they put them to work down there. The CHAIRMAN. They take them farther away from the line, so the airplanes can charge more. Then they say that is the agricultural people's fault. That is wonderful, isn't it? Well, we get into some funny situations. |