free-world production, therefore, became on the order of 55 to 60. So there was the excess. Mr. HOSMER. Do you see in the present dumping, since you are the only producer in the country, essentially, or 95 percent of the production, a pattern of an attempt by the international cartels to put you out of business, or is this just an economic situation? Mr. JOHN BRADLEY. I can't help but feel there must be that attempt, yes. How real it is, you don't know. But when you are put out of business, you start thinking about everything. These gentlemen here asked me to explain reproduction costs. I thought I made that point clear, that the cost-I shouldn't say reproduction, but getting back into production and new production, worldwide, we gather from everybody else, should be around 40 cents a pound, but in our case somewhat higher. Mr. HOSMER. You say that your capacity is essentially 20 percent of the country's requirements. Is that the peacetime requirement, 10,000 tons, or the wartime requirement of 40,000? Mr. JAMES BRADLEY. That is the peacetime requirement. Mr. HOSMER. In other words, your capacity is 10,000 tons a year. Mr. JAMES BRADLEY. No, it would be roughly 3,000 tons. Mr. HOSMER. That would be at 50 cents a pound, that your requirements would be satisfied, and your total output taken up, is that right? Mr. JAMES BRADLEY. Well, we are not sure, because as I say, we would have to redetermine all of our costs. Mr. HOSMER. If that 50-cent figure were right? Mr. JAMES BRADLEY. Yes, if that 50-cent figure was right. You are speaking of Yugoslavia. We did not mention that among the principal suppliers. Out of approximately 13,000 tons of imports, Yugoslavia shipped in 803 tons of metal, but most of that came in at the time when it hurt the market very much because they were willing to take anything they could get for dollars. Mr. HOSMER. You painted a pretty rosy picture of this substitute just of germanium. But, as a matter of fact, the requirements are for very small amounts even to satisfy the transistor requirements of the whole country. So that wouldn't help much, would it? Mr. JAMES BRADLEY. We are given reason to believe by the Batelle Memorial Institute that is doing the research, that this might develop into a very wide use, because there are many places where you can use this new compound where germanium cannot be used. Mr. HOSMER. Isn't it a fact that the amount in a transitor is very small? Mr. JAMES BRADLEY. Yes, it is about two-tenths of a gram. However, there are many other uses besides transistor. The whole field is still in its infancy. Mr. RIEHLMAN. It certainly is in germanium, isn't it? Mr. JAMES BRADLEY. Yes. The use has been held back partly because of price and partly because of limited availability and partly because it will not function at high temperature. Mr. RIEHLMAN. Have you any other questions? Mr. McCULLOCH. I would like to have an explanation of your statement on page 2 that there has been in effect a drastic reduction in industrial inventories of antimony when the price has been at such a low level. How can you explain that? Mr. JAMES BRADLEY. Well, that is a matter of consumer psychology. When they see the price going down, they hold back buying and dig into their inventories for their own use, hoping to get a lower price, eventually. Mr. MCCULLOCH. How long do you think that is going to continue? Mr. JAMES BRADLEY. Well, that is a problem. It can only go so far, and then the whole market will reverse, and make a sharp reverse the other way. That has been the history of the antimony market. It seems to go in cycles of approximately 2 years. It is really a feast-orfamine market. Mr. McCULLOCH. And when these inventories are exhausted and you are not in a position to help supply the need, then the price is going to shoot skyward. Mr. JAMES BRADLEY. Yes, sir. And the Bolivians are having trouble. So it looks like it might be a very serious situation even in peacetime. Mr. McCULLOCH. I have asked this question of a good many witnesses, and I would like to ask it of you because I think it is of considerable importance: Is it your studied and sincere judgment that this relief which you have recommended in the long run will not cost the American people more than doing nothing or maybe not as much? Mr. JAMES BRADLEY. That is correct, sir. We believe that if there could be some continuity of production in this country, it would make a cheaper antimony over a period of years for the consumers. Mr. McCULLOCH. And that is your unselfish opinion on that? Mr. JAMES. BRADLEY. Yes, sir. Mr. HOSMER. I noticed there is a good deal more production of most of these other metals in the United States than in the case of antimony. Is that due to the rarity of the metal in the natural state here, or the fact that it has not been a market that has been profitable enough for more firms to get into? Mr. JAMES BRADLEY. Well, it is due mainly to the fact that it is such an unstable market and there is no relative tariff protection. Mr. HOSMER. Do you know whether or not there are deposits in this country that are available and could be used to get us anywhere near our domestic requirements? Mr. JAMES BRADLEY. There are many deposits in this country, but it would be very difficult to get us near our requirements. I think we are also going to be dependent to a large degree on foreign sources, unfortunately. Mr. HOSMER. I want to ask the same question of you as I did the previous witness. What percentage of your requirements do you think it would be wise for us to strike at from a national security standpoint? Mr. JAMES BRADLEY. Well, that is difficult to say. We are so heavily dependent on overseas sources. Last year overseas supplied about twothirds of our material. Mr. HOSMER. Of necessity, then, stockpiling would be more important in connection with this metal than some of the others? Mr. JAMES BRADLEY. Yes. We sincerely believe that, partly because the wartime requirements just about tripled and also because it is more difficult to obtain the regular sources. Mr. McCULLOCH. I understand that you have been doing, and probably are in a position to do, some custom smelting? Mr. JAMES BRADLEY. Yes, that is correct. We have not done any custom smelting but we have thought about it. Our smelter is now shut down. If we opened it up on our own accumulated in-process material, we would be in a position to do some custom smelting. I might also mention, and I think I mentioned it, that we have a very flexible plant and can handle all types of antimony ores. It is recognized by Government agencies as a key defense facility for that reason. Mr. McCULLOCH. I was going to ask had you been doing custom smelting. That was the first question. But do you know whether or not the very small producers have had any complaints against the smelters for excessive charges or takers or whatnot? Mr. JAMES BRADLEY. No, I think their only complaint is a lack of market. Normally the market for antimony and 50 percent ore is about one-half of the going metal price. But the antimony market is usually abnormal. Either there is not enough to go around or just the opposite. Mr. McCULLOCH. You know of no small producers who have charged or feel that they are at the mercy of the smelters? Mr. JAMES BRADLEY. Well, no, sir. I have not heard that. Actually, there is no production and nobody is shipping to the smelter at the present. In the case of antimony ore, their selling price to a smelter would be dependent upon the competitive foreign ore price. It is not based on a smelting charge like lead or zinc, it is simply paying so much for the antimony in the ore. Mr. RIEHLMAN. Mr. Counsel, have you any questions? Mr. HINTON. No, sir. Mr. RIEHLMAN. Mr. Bradley, you have certainly brought to us a very important and interesting subject. I don't want to lead you to believe that we are going to be able to solve it, but we hope that we may be able to pass on some information to those who are going to make a very thorough study, I hope, in the next few months, of our whole program of foreign trade and reciprocal trade programs, with the hope of making some changes and bring about an entirely different balance than we have at the present time, and which would help our own domestic industry. We surely will use the information you have given us in the best possible way. Mr. JAMES BRADLEY. Thank you. Mr. RIEHLMAN. And we thank you for your contribution, Mr. Bradley. (The following letter was later received for the record:) Re Supplemental Statement on Antimony. BRADLEY MINING CO., San Francisco, Calif., May 5, 1953. Chairman, House Select Small Business Committee, Washington, D. C. DEAR SIR: Enclosed is a statement in supplement to my testimony on antimony before the House Select Small Business Committee mining hearing in San Francisco, Calif., on April 25, 1953. This statement gives a more detailed answer to the committee's question on the following subject: Estimated consumption of primary antimony in new uses. The consideration shown by the members of the committee at the San Francisco hearing for the problems of the small mining industry was greatly appreciated by all concerned. Yours very truly, JAMES P. BRADLEY. SUPPLEMENTAL STATEMENT BY JAMES P. BRADLEY ESTIMATED CONSUMPTION OF PRIMARY ANTIMONY IN NEW USES In elaboration of my answer to the question put to me by the committee on the above subject, I wish to add the following statement: The estimated ultimate United States annual consumption of primary antimony in the most important new uses being developed can be summarized as follows: Application Antimony as a replacement or Estimated ultimate United States annual consumption of primary antimony Electronics (Antimony-aluminum and other Germanium, silicon, selenium. antimony compounds). Plating New metallurgical uses.. New development, not a replace- Tons Nickel. 5,000-10, 000 5,000 It is important to note that the above new uses for primary antimony (new antimony from mine production) will be in addition to the normal United States peacetime consumption of primary antimony (15,000 tons annually) and in addition to the United States wartime requirements for primary antimony (40,000 tons annually at World War II peak rate of use). Secondary antimony (antimony recovered in the form of lead scrap and in discarded storage batteries) is reused mainly in storage batteries and in other antimonial lead products and cannot be used in the above new applications where antimony of high purity is required. Furthermore, it is not possible to make use of secondary antimony in the most important present uses for primary antimony (particularly in nonmetallic products which account for the greater part of the consumption of primary antimony). The new antimony developments have important civilian as well as military applications and I am submitting the following additional information : Electronics-Antimony-aluminum and other antimony compounds1 It is estimated that the consumption of antimony in the fast-growing elec tronics field may eventually reach 1,000 tons per year or more. The possible applications are in rectifiers, transistors, photoelectric devices, etc. In addition to the research being sponsored at the Battelle Memorial Institute by the Bradley Mining Co., investigations of antimony-aluminum (and other antimony compounds) are being carried on by other private companies and also by agencies of the United States Government. The main reasons for the great industrial and governmental interest in the newly developed antimony-aluminum compound (and other antimony compounds) are as follows: (1) The growing need for transistor and rectifier materials that can operate at high temperatures-this need being particularly critical in the case of military aircraft and guided missiles. The work to date indicates that antimony-aluminum may be superior to both germanium and silicon for high-temperature operation in electronic devices. (2) Low cost of antimony and aluminum (both metals sell for under 50 cents per pound) as compared to $350 per pound for germanium and about $600 per pound for high-purity silicon. (3) Due to the higher melting point of silicon, the indications are that the processing of antimony-aluminum will be simpler than for silicon. (4) Limited availability of germanium. There is also a possibility that antimony-aluminum may prove superior to selenium for use in rectifiers (this is a large tonnage field). Plating The Bradley Mining Co. is sponsoring research at the Battelle Memorial Institute on the use of antimony as a plating material on zinc-base diecastings. Successful plating techniques have been worked out and exposure tests are now 1 Compounds of antimony with cadmium, gallium, indium, zinc, etc., are also being investigated. Some of these compounds show very interesting possibilities. being prepared. The preliminary results show that antimony plating may prove to be more satisfactory than nickel plating on zinc-base diecastings. The use of nickel in plating is currently being restricted by the Government and the quantity of nickel allowed for this purpose does not produce satisfactory plating. Due to these restrictions and in view of the present and indicated future shortage of nickel, the automobile companies and others in the plating industry have been trying to develop satisfactory substitutes for nickel in plating work. Various materials have been tried, but antimony appears to be the most promising substitute. While others are investigating the use of antimony as a plating on steel, the work at Battelle is being confined to the development of antimony as a plating material for zinc-base diecastings. New metallurgical uses Current investigations indicate an eventual large consumption of antimony as an alloying constituent to import useful qualities to some of the new metals under development. Mr. RIEHLMAN. We will take a recess for a few minutes. (Brief recess.) Mr. RIEHLMAN. Before I proceed to call the next witness, I would like to reiterate what I said this morning at the opening of this hearing, which is this: that if there is anyone here whose name we do not have on the list to appear as a witness, who has anything that he or she would like to say with respect to the problems that are being presented here today, we will try and give you a chance to do it. If we do not have the time and you have statement that you would like to file with the committee, it will be put into the record and given the same consideration as though you made an oral presentation. So please do not hesitate to contact anyone of the members of our counsel for the permission of putting that into the record. If you do have them and they are here at this time, I would appreciate your presenting them to us and we could glance through them and counsel could see whether there might be some pertinent questions that we might like to ask. Is there anyone present that has a statement that they would like to file at the conclusion of the hearings whose name we do not have here? I think this gentleman back here discussed it with me. We will be very happy to have your statement, sir. Is there anyone else? All right, we will proceed to call the next witness, who is Mr. Fay Bristol. STATEMENT OF FAY I. BRISTOL, PRESIDENT, OREGON MINING ASSOCIATION, GRANTS PASS, OREG. Mr. BRISTOL. My name is Fay I. Bristol. I am the president of the Oregon Mining Association. I employ 14 men in Red River, Oreg. I do have a chrome mine that now employs 2, and when the weather improves maybe we will have 8. Mr. RIEHLMAN. Do you have a prepared statement? Mr. BRISTOL. I would like to read it for the record, and I would like to read it leaving out a few words and incorporating others. Mr. RIEHLMAN. Your problem is with chrome? Mr. BRISTOL. Yes, sir. Mr. RIEHLMAN. All right, you may proceed. Mr. BRISTOL. Mr. Chairman, a little background on chrome production I feel will be in order. The world's first production came |