not using your mine for mining purposes, you should not get title to it under a mining patent. Mr. HOSMER. And in addition to that, this reverter would only last for a period of 5 years or something like that. It wouldn't last forever. But it is stated that it would give additional protection to the Government in insuring that the land would be used for the purpose for which it was patented. Mr. ALEXANDER. According to that, then, it should protect the miner that is filing claim and is working it so that he could continue to hold it as a mining claim. Mr. MULTER. The bona fide miner who is acting in good faith should be protected, will be protected. Nobody denies that. Mr. HOSMER. Well, gentlemen, I do not want to leave you with a feeling that this committee is going to settle this problem of any changes in the mining laws that might be in process, because it will be considered additionally by the legislative committees of Congress. You should be on the lookout for those committee hearings and present your testimony there. I would also like to state that in connection with the problem of taxation, as it pertains to business in general, and including the mining industry, another subcommittee of the Small Business Committee will commence hearings in May on the general tax problem as it comes in relation to small business. The information that you have given us today and at our other hearings on that particular point will be furnished this other subcommittee. If you have any additional points you want to make before that subcommittee, you are of course welcome to do so. I want to emphasize this point as I have consistently done all day: we do not stop receiving information now that the hearing is over. We will receive anything in writing that you desire to place before us that is relevant to this inquiry, if you get it to us within a reasonable time. I want to thank you all for your courtesy and kindness to us, and your attention, and the information that you men working in the field have brought to us today. We sincerely hope that we can translate it into an answer to your problems. Thank you, gentlemen. The hearing is adjourned. (By direction of the Chairman the following is included in the record :) Mr. Jos. H. TAYLOR, Vice President, Peru Mining Co., NEW MEXICO MINING ASSOCIATION, Postoffice Box 309, Silver City, N. Mex. DEAR MR. TAYLOR: Enclosed herewith is the letter requested in your letter of April 13. In passing, and in view of the fact that this is far from being the first time you have represented the association, I doubt if the letter from me will be of much assistance to you. I think that your decision to attend the hearing in Denver is a fortunate one for the industry and the association. I am enclosing a copy of a letter just received from Julian Conover which I think may be of interest to you. Cordially yours, W. P. MORRIS, President. NEW MEXICO MINING ASSOCIATION, Hon. WILLIAM S. HILL, Chairman Denver, Colo. DEAR SIR: Mr. Jos. H. Taylor, vice president, Peru Mining Co., Silver City, N. Mex., has agreed to act as spokesman for the New Mexico Mining Association at hearings to be held by your committee in Denver on April 22 and 23. Mr. Taylor has accepted this assignment at our request and will appear before your committee as the authorized representative of the association. Yours very truly, WPM:pbl (Signed) W. P. MORRIS, President. RESOLUTION ON LEAD-ZINC CRISIS ADOPTED BY THE MORENCI MINERS UNION, LOCAL 616, OF THE INTERNATIONAL UNION OF MINE, MILL, AND SMELTER WORKERS Whereas we, the members of the Morenci Miners Union, local 616, of the International Union of Mine, Mill, and Smelter Workers and employees of the PhelpsDodge Corp., Morenci, Ariz.. regard with grave concern the current unstable metals situation. There we have seen that the metals crisis has brought layoffs in the great majority of the metals industry. We believe that the causes of the metals crisis are: 1. Monopoly control of the industry which had been widely extended to new foreign properties in recent years. Production from these new mines operated with low-wage labor is now displacing United States production. 2. Stockpiling which gave great profits to the monopolies, created artificial shortages, and boosted prices to record levels from which it was inevitable that they would fall. The artificial shortages also supplied the monopolies with an alibi for grabbing up new foreign mines. 3. Pressure on Western Europe to rearm has brought on a general economic decline in those countries and has shrunken the market for metals over there. The situation is being used to undermine established wages and working conditions. A real depression could result from such a policy; Now, therefore, be it Resolved, That local No. 616 of the International Union of Mine, Mill, and Smelter Workers at Clifton, Ariz., does hereby petition Congress, through its Representatives and United States Senators, to take remedial action along the following lines: 1. Support of all legislation for a bigger and better housing program, highways, new schools, hospitals, valley authorities, and such new public works that will greatly increase the domestic market for the metals we produce. 2. Adoption and support of legislation to treat with the problem of stabilizing the metals market. 3. Support of legislation to provide unemployed workers with direct assistance over and above present compensation standards without restrictions. Work toward a much-needed improved social-security plan. 4. Support of current movement to cut taxes, especially those taxes which are placing the load of the current crisis on the workers. 5. Support for an immediate and adequate wage increase. 6. Concrete steps toward international labor relations with unions in the metals industries of other countries, particularly in those areas exploited by the same companies who employ our members. 7. Legislation to broaden world trade in order to open up vast new markets for United States metals; and be it further Resolved, That copies of this resolution be sent to our Representative in Congress, Harold A. Patten; to Senators Barry Goldwater and Carl Hayden; to Chairman William S. Hill, of the Select Committee on Small Business of the House of Representatives of the United States; and to President Dwight D. Eisenhower. [SEAL] DAVID VELASQUEZ, President. HENRY G. MARQUEZ, Secretary. Box 1017, CLIFTON, ARIZ., April 21, 1953. HONORABLE GENTLEMEN: Lead and zinc properties in the United States are being shut down or having the operations curtailed in the midst of the greatest war spending in the history of our country. The crisis in the metals industry likewise has brought layoffs in brass, iron, and even copper. Unfortunately, some mine operators are attempting to shift the burden of the present crisis onto the worker. Some companies are using present crisis as an excuse to undermine established wages and working conditions, the result of which shortsightedness could only be an even greater slump. Our 1952 convention listed the following causes for the crisis in which the industry now finds itself: 1. Monopoly control which has been widely extended to new foreign properties. Production from these new mines, operated with low-wage labor, is now displacing United States and Canadian production. 2. Stockpiling which gave fantastic profits to the monopolies, created artificial shortages, and boosted prices to record levels from which it was inevitable that they would fall. The artificial shortages also supplied the monopolies with an alibi for grabbing up new foreign mines. 3. Pressure on Western Europe to rearm has brought on a general economic decline in those countries and has shrunken the market for metals over there. 4. The choking off of trade with countries where large potential markets for metals exist. Strong Government action is necessary to a. Protect the economic security of both employed and unemployed. b. Protect the interests of small, nonmonopoly operators. c. Widen domestic and foreign metals markets to increase consumption of lead, zinc, and other metals. Local 915 of the International Union of Mine, Mill, and Smelter Workers at Ray-Sonora, Pinal County, Ariz., does hereby petition Congress through its Representatives and United States Senators, to take emergency remedial action along the following lines: 1. Adoption of legislation to provide unemployed workers with direct assistance over and above present inadequate unemployment compensation standards. Removal of present restrictions and waiting periods. 2. Protection of small mine operations through passage of premium-price legislation. 3. Legislation to expand domestic metals markets through new public works, such as river-valley developments, highways, schools, hospitals, rural electrification, and last, but not least, housing and adequate sewage, an example of which exists in this very particular locality of ours. 4. Legislation to broaden world trade in order to open up vast new markets for United States metals. THE RANK AND FILE OF LOCAL 915, IUMMSW, By JACOB S. MERCADO, President. LOY ABRIL, Secretary. UNITED MINE WORKERS OF AMERICA, LOCAL UNION NO. 5936, WILLIAM S. HILL. HONORABLE SIR: I am writing to ask your support in the passage of H. R. 4294, to protect our coal industry from the flood of foreign-made products into the United States. Hoping for an early passage, I remain yours truly, THOMAS E. HODGSON, Recording Secretary, Local Union 5936, U. M. W. of A., Dacono, Colo. Mr. THOMAS E. HODGSON, APRIL 27, 1953. Recording Secretary, Local Union 5936 of the UMW of America, Dacono, Colo. DEAR MR. HODGSON: I appreciate your letter and the support you have expressed toward the legislation, H. R. 4294. I am very much interested in this legislation and assure you it will be a pleasure to help your organization in its program of protecting the use of our own coal over products of foreign countries. I shall see that Congressman Richard Simpson, the author of H. R. 4294, receives the recommendation of your organization, and that it is placed in the committee hearings. Very truly yours, WILLIAM S. HILL. DEER LODGE MINERS' UNION, LOCAL No. 834, INTERNATIONAL UNION OF MINE, MILL, AND SMELTERWORKERS, Garrison, Mont., April 23, 1953. The Honorable WILLIAM S. HILL, House of Representatives. MY DEAR MR. HILL: Attached is a resolution which was adopted by the Deer Lodge Miners Union. I was instructed to mail it to you. Sincerely yours, CHARLES J. HAM, Whereas lead and zinc properties in the United States are being shut down or having their operations curtailed in the midst of the greatest war spending in the history of our country. The crisis in the metals industry likewise has brought layoffs in brass, iron ore, and even copper. Unfortunately, some mine operators are attempting to shift the burden of the present crisis onto the worker. Some companies are using the present crisis as an excuse to undermine established wages and working conditions, the result of which shortsightedness could only be an even graver slump. Our 1952 convention listed the following causes of the crisis in which the industry now finds itself: 1. Monopoly control which has been widely extended to new foreign properties. Production from these new mines, operated with low-wage labor, is now displacing United States and Canadian production. 2. Stockpiling, which gave fantastic profits to the monopolies, created artificial shortages, and boosted prices to record levels from which it was inevitable that they would fall. The artificial shortages also supplied the monopolies with an alibi for grabbing up new foreign mines. 3. Pressure on Western Europe to rearm has brought on a general economic decline in those countries and has shrunken the market for metals over there. 4. The choking off of trade with countries where large potential markets for metals exist. Strong Government action is necessary to: (a) Protect the economic security of both employed and unemployed workers. (b) Protect the interests of small, nonmonopoly operators. (c) Widen domestic and foreign metals markets to increase consumption of lead, zinc, and other metals. Now therefore be it resolved: That Local No. 834 of the International Union of Mine, Mill, and Smelter Workers at Garrison, Mont., does hereby petition Congress, through its Representative and United States Senators, to take emergency remedial action along the following lines: 1. Adoption of legislation to provide unemployed workers with direct assistance over and above present inadequate unemployment compensation standards. Removal of present restrictions and waiting periods. 2. Protection of small mine operations through passage of premium-price legislation. 3. Legislation to expand domestic metals markets through new public works, such as river valley developments, highways, schools, hospitals, and rural electrifications. 4. Legislation to broaden world trade in order to open up vast new markets for United States metals. STATEMENT FOR SMALL BUSINESS COMMITTEE OF THE 83D CONGRESS, My name is Joseph H. Taylor, vice president and general manager of Peru Mining Co., 515 West Twelfth Street, Silver City, N. Mex., representing New Mexico Miners Association. men. A year ago the lead-zinc industry in New Mexico employed approximately 1,200 Some of these men were employed in the mills, some on the surface at the mines and some underground. Of these, exclusive of salaried employees, but 323 are now employed by the lead-zinc mines, of which but 135 are in production of lead-zinc ore. This means that approximately 900 men have been laid off or been forced to find other work. At present, about 500 of these are registered unemployed and are largely drawing unemployment compensation, but this compensation is for 24 weeks at $25 a week and within a few months this compensation will be completed at which time these men will be financially in trouble unless, in the meantime, they can find some work. The annual report of the New Mexico State Inspector of Mines for the fiscal year ending June 30, 1952, shows there were produced 13,205 tons of recoverable lead, valued at $4,707,499 and 50,629 tons of recoverable zinc, valued at $13,270,914. This is approximately 64,000 tons of metal valued at nearly $18 million. Of this $18 million, approximately 47 percent went for labor, which was spent largely in the area with merchants supplying food, clothing and household furniture. In addition, the employees bought automobiles, paid taxes and bought savings bonds. The payrolls now are reduced to 25 percent of the rate a year ago and this is seriously affecting business in the area. Six of the major mines in New Mexico have been closed or are operating on the basis of exploration and development. One mine is producing zinc-lead ore in connection with a development program. In addition, over the past years, our mill treated ores from more than 20 large and small mines, all of which have discontinued operations, thus cutting off more than 80 percent of the production. These small and large mines, which have discontinued production in the past year also employed men, most of whom are not included in the above figures for unemployment. The closed mines are now at a heavy expense to maintain conditions of equipment and keep the water pumped out. As time goes on the costs of maintenance will either be excessive or, lacking proper maintenance, the properties will gradually deteriorate, so that something should be done to get these mines back into operation as promptly as possible. In normal times, two-thirds of the zinc consumed within the United States is produced by our domestic miners and one-third comes from foreign sources. It is not our wish to prohibit the importation of zinc and lead but to control the importation and protect our domestic mining industry. It is my belief that this proportion is perfectly proper and we were glad to encourage importation of zinc while the price was 191⁄2 cents and the Emergency Lead-Zinc Committee cooperated with Congress in permitting lead and zinc to come in duty free when the price was 18 cents. From December 1951 to October 1952 imports of both metals increased 80 percent. At present, the very small tariff on zinc does not in any way protect the domestic zinc industry and now more than 60 percent of the zinc consumed in this country comes from foreign sources. If this continues, it is quite likely that many of the zinc mines will be permanently shut down and the Nation placed in a critical spot in the event of sudden need for lead and zinc. We have had a serious break in the prices of these metals with imports exceeding 60 percent of the domestic consumption in the past and when our domestic mining industry was forced to curtail or shut down, the foreign price was put up and domestic consumers were forced to pay excessive prices. A stabilizing import tax would be a good thing for the consumer by eliminating the fluctuating price and at the same time it would preserve our lead-zinc mining industry. To sum up, the excessive importation of lead and zinc from countries having low wage scales has had a disastrous effect upon the domestic mining industry. Hundreds of men in New Mexico are out of work. All lead-zinc mines in this State are closed or operating at terrible losses. This is becoming progressively worse and in an emergency, the cost of re-opening will be increasingly high. In our opinion, a stabilizing sliding scale import tax, such as H. R. 4294, is needed promptly to save the lead-zinc mining industry. |