STATEMENT OF HON. JOSEPH M. MONTOYA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW MEXICO, ACCOMPANIED BY ROBERT C. McCONNELL, ADMINISTRATIVE ASSISTANT, ON BEHALF OF BOTH HIMSELF AND HON. THOMAS G. MORRIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW

MEXICO

Mr. MONTOYA. Mr. Chairman, I would like to say, by way of preface to the joint statement Mr. Morris and I have prepared, that New Mexico, like Nevada and the other lead and zinc producing States, has been suffering because of the decline in mining of these minerals. Now that decline is attributable, as well we all know, to the import policies of the previous administration, and I am hopeful that this administration and the Congress will take cognizance of the fact that in these areas there are many people unemployed.

I know in New Mexico, as a result of the decline in mining caused by import policies, our State welfare department has had to assign surplus commodities to these people.

I also know, as a matter of personal experience or knowledge, that the children in these areas who are attending school, representing children of unemployed miners, sometimes go to school with torn shoes or wornout shoes, and they cannot even pay the small amount that is required for their noonday lunch. As a result the State has had to subsidize these children so that they will have a proper diet.

The situation is very alarming when you get close to it, and it shocks anyone with any sense of humanity about him to know that their condition is attributable to the fact that the lead and zinc mining industry has been on the decline.

If we will review the statistics on lead and zinc mining, we will find very clearly that domestic production has been decreasing, whereas foreign production has increased on these two minerals. When that situation arises I think that is the time for the Congress to do something about it.

Now, we hear about nationalism in all of these countries that produce minerals, and we fail to assert our own nationalism to a point where we must nourish our declining economy, the decline of which is attributable to these factors which I have mentioned. Now, may I read our joint statement:

Mr. Chairman and members of the committee, we appreciate very much the opportunity of appearing before this committee this morning in connection with what we believe will be concerted efforts this year to stabilize the zinc and lead industries in our country and alleviate the grave situation in these industries which has been increasing with the passing of the last several years. The chairman of this subcommittee, Mr. Edmondson of Oklahoma, has worked as devotedly as humanly possible to obtain cooperation from previous administrative departments over the last few years, but, as we all know, his efforts and the coordinated efforts of our delegation from New Mexico and delegations from other western mining States have been without fruition; in fact, these efforts have been wholly frustrating, to put it in the mildest sense.

We are grateful for the promised new look not only by the Congress but new administration as well. As the chairman knows, a number of us had salutary and lengthy conference in the last few weeks with the newly app Assistant Secretary of the Internor for Mineral Resources, John Kell we left the conference with a definite impression that a searching and analysis of the entire, overall situation facing these industries today be made, and it would be exhaustive in every possible respect. Needless we are grateful to Secretary Udall and Assistant Secretary Kelly for courtesies and deep interest which was so plainly expressed in that m Mr. Chairman, you introduced H.R. 84 during the early part of this of the Congress and after consultation with you we introduced similar H.R. 2505 and H.R. 5271. The general purposes of these bills and other s bills which have been introduced are before your committee this mornin they are intended, as you know, to make a step forward in establishin maintaining a program of reasonable stabilization payments to small do producers of lead and zince ores. We believe at this point that we mention that the highly respected chairman of the full committee, Mr. As has also introduced comprehensive legislation which likewise is directed t the stabilization of these important industries. The bill he introduce been referred to another committee because in part it would provide fo quate tariffs and import taxes aimed toward another step in trying to st our own lead and zinc industries in this country which we all agree is of importance and consideration. May we also say at this point that both have also introduced similar legislation after consultation with the chai We are reluctant to unnecessarily impose upon the time of this com with a lengthy statement, but we would like to express our profound that something positive and unequivocal is now in order if we are to p industries on their feet and in the long run accomplish the much needed tive of assuring development, increased production, substantial growth in fields and, of importance, a searching program of exploration which has so badly needed for so many years. We do not come before this committe morning with any thought that either type of bill which we have mentione be a millennium or a complete solution, but we are hopeful through the certed and devoted efforts of the Congress and the administration that w formulate positive approaches which will alleviate one of the most distr situations in our great country. Most certainly, this committee, the a istration, the miners, the producers, the employers, and the employee count upon our wholehearted support and efforts in every respect.

Testimony will be presented to this committee in these hearings with re to national figures concerning not only the low ebb of production but als low ebb of employment. We will not go into the national picture in any detail in this statement, but we do believe it is important to emphasize the Tariff Commission only last fall unalterably, through the medium of fully compiled statistics, greatly strengthened our convictions as to the cally depressed statistics concerning both zinc and lead in this country pages 2 and 3 of the report submitted by the Tariff Commission to the dent it is pointed out that U.S. mine output of zinc declined from 532,000 in 1957 to 412,000 tons in 1958, and although there was a slight increa 425,000 tons in 1959, production in these years was lower than in any year our gravest depression in the early 1930's. Further, the U.S. mine outp lead declined from 338,000 tons in 1957 to 256,000 tons in 1959, and this duction in 1959 was the lowest on record since 1899. Gentlemen, we sinc believe that these figures speak for themselves, and the Tariff Commission r squarely places these industries in a most precarious and untenable positio am sure that this committee is familiar with the findings and recommenda of the Tariff Commission, with the subsequent unsatisfactory actions take the executive department, and this committee, we are sure, is also familiar the outcome of legislative recommendations.

We would sincerely appreciate a few moments more, if we may, in poin out the severe impact of this depressive condition in New Mexico. The zine lead industries were of prime importance to the economy of our State many years, and this was particularly true from 1948 to 1952 when the ag gate production on an average of both industries approximated almost $12 lion a year. There were in the neighborhood of 1,200 men employed in t

industries in New Mexico in 1952. In subsequent years because of the rapid decline in metal prices and increased imports, our zinc and lead production dropped 55 percent which, gentlemen, is a most sizable figure economywise when we take into account not only the size of our State but the fact that we can hardly be considered as an industrial State.

We think we can advisedly argue that both industries were virtually closed down well over 2 years ago, and the localities affected, particularly Grant County, lost the principal source of tax revenue. We think it is significant to note that the Employment Security Commission of New Mexico as recently as a few days ago reported after exhaustive research that mining job openings alone had dropped 23 percent just from last year. We believe this committee is familiar with previous testimony by both of us to the effect that in the counties affected we have had countless families on breadlines similar to those of the 1930's, and we say this not figuratively but literally since Government records will show that commodities such as dried eggs, powdered milk, and other basic subsistence needs had to be channeled into these areas time and again. As a matter of fact, those areas never received enough commodity assistance to anywhere near meet their needs, and it is a sad plight indeed in this great country that such situations should exist, which situations, of course, are wholly incomprehensible to the loyal Americans suffering the plight first hand.

We strongly contend, and we believe rightfully so, that coordinated efforts to alleviate these grave conditions and stabilize these industries through workable, long-range programs fall directly within the intents and purposes of our new President in his efforts to meet headon the most challenging problems connected with distressed and depressed economic conditions in our country. We not only implore but we importune this committee, the Congress, and the administration to most seriously and most expeditiously try every means at their collective disposal to face and resolve what does not have to be an insurmountable crisis. Again, we most earnestly and sincerely offer all of our humble efforts toward the attainment of those objectives.

Without further burdening the committee but, in conclusion, paying my sincere compliments to the gentleman from Oklahoma for being a leader in this fight, and to the gentleman from Colorado for espousing our cause during his service in the Congress and lending us a hand at all times as chairman of the committee and as a member of the committee.

Mr. EDMONDSON. We are very pleased to have your statement, and the appearance of our two distinguished colleagues from New Mexico. Both Mr. Montoya and Mr. Morris have, I think, done a wonderful job of representing the mining industry and in fighting for improved conditions for the miners. We appreciate your being here.

The gentleman from Colorado.

Mr. ÅSPINALL. Mr. Chairman, I would like to compliment the Members from New Mexico for their interest in this matter. They have always been most helpful and constructive. However, I want us all to understand that there are certain limitations on all legislation. This bill is a start as far as this session is concerned. We don't know what the total bill may come to before we get through with it. But this bill was originally drawn for the last session. Some of the benefits which have been

gested by our colleague, Mr. Montoya, perhaps e so helpful to his State and my State, as he

is will not put the 4,000 people who are to work and it will not take care of a lot V Mexico. It will take care of some of of the most difficult decisions we have to e of legislation.

L

As I understand it, Mr. Montoya, you would like to have a b like to have legislation, which would give as much help as possi the depressed mining areas in the United States. Isn't that rigl Mr. MONTOYA. Absolutely.

Mr. ASPINALL. That is, small producers especially?

Mr. MONTOYA. Yes.

Mr. ASPINALL. You would like to see to it that these small which mean so much to your State, and the rest of the States of of us, are put back into operating condition.

Mr. MONTOYA. Yes, that is correct.

Mr. ASPINALL. And if this bill does not do it at the present you would like to see that done?

Mr. MONTOYA. Yes. The most we can say about this bill is it presents a start in the right direction and the bill has prov within its four corners which come close to finding acceptability Congress.

Mr. ASPINALL. Of course, I think one of the things though th must be very careful about is that we must not mislead our people by a certain piece of legislation we are going to give a lot of he them when the help may be limited. All I want to have you adv on is whether or not you wanted this bill so amended so that i these benefits for all of the lead and zinc industry of the United S

Mr. MONTOYA. I would naturally like for the bill to go further it does, and I think we all would who are interested in mining an welfare of the mining industry. But we also have to conside mood of the Congress and the mood of the administration in tryi strike, if not a medium, an acceptable approach.

Mr. ASPINALL. Do you think our people will understand it at if we help a certain group and do not get help to other groups may be similarly located as far as their economic well-being is cerned?

Mr. MONTOYA. Well, they understand our total sympathy fo industry and they also understand that sometimes it is very diffic devise a complete solution.

(Discussion off the record.)

Mr. ASPINALL. Thank you very much.

The gentleman from New Mexico is a member of the Appropria Committee, I believe, and a very able member of that comm When the gentleman refers to acceptability in the Congress, I an idea he is thinking in terms of the Appropriation Committ well as other aspects of the Congress, and one of the great virtu this bill which I have not been able as yet-I am very hopefulhave not been able as yet to locate for any other piece of legislati is that it has been demonstrated to be acceptable to some of the figures on the Appropriations Committee who will have to pas what money is appropriated for this program.

If our chairman and others on the committee-and I am read join them—are able to convince those figures to go along with a la appropriation for this program, I will be together with them in front ranks, I can assure you.

We also have another member here now who is a sponsor of the islation before the committee. I would like to recognize the ger woman from Idaho.

STATEMENT OF HON. GRACIE PFOST, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF IDAHO

Mrs. ProST. Thank you, Mr. Chairman. I wish to join my colleagues in commending you for your excellent summary of the legislation now before this Mines and Mining Subcommittee. And my thanks, also, to Chairman Rogers and to Mr. Aspinall, the distinguished chairman of the Interior Committee, for arranging early hearings on this most important piece of legislation.

Members of this committee, I know, will recall that similar exhaustive hearings were held on this legislation 1 year ago this month. Congress later saw fit to vote favorably on the legislation in the closing days of the session. But the measure died shortly afterward from a familiar malady-the Presidential pocket veto. The new occupant of the White House has indicated he looks with more favoron this measure to aid our hard-hit domestic lead-zinc industry, and I am earnestly hoping, therefore, that it will see final approval.

Survival of the small domestic lead-zinc producer is at stake, and action is needed on this legislation at the earliest possible date. Further delay will only mean the steady worsening of an already bad condition.

As a Member of Congress representing one of the leading leadzinc producing States in the United States, and as a member of this committee, I urge favorable consideration of H.R. 84 by my colleague, Congressman Ed Edmondson, and my own bill H.R. 4003, along with four other similar bills.

Idaho lead-zinc mines last year-and this means in general the large companies, for most of the small mines have closed-produced 41,080 short tons of lead and 37,240 tons of zinc. This was down considerably from the previous year, mainly because of a costly 7-month strike which closed operations of the Bunker Hill Co. in Shoshone County in my district. That strike, fortunately, has now been settled and the mines are now back in full production.

But where Idaho now has largely big lead-zinc producers, it must be borne in mind that there was a total of 56 mines operating in the State and producing less than 500 tons only 5 years ago. During the same year, 1956, there were six mines producing between 500 and 1,000 tons; three between 1,000 and 2,000; two between 2,000 and 3.000; and four between 3,000 and 4,000. This means, in other words, that a total of 73 mines operating in Idaho in 1956 could be benefited by this legislation.

Domestic lead production last year, of 244,000 tons, according to preliminary estimates by the Bureau of Mines, was the lowest in 61 years. Zinc production stood at 432,442 tons, slightly better than the 416,965 tons mined the previous year, but still far below the level of previous years.

Mr. Chairman and members of the subcommittee, I believe it is imperative that we encourage the domestic production of these metals as an overall part of our defense program. Recent events abroad have proven to us the fallacy of looking to other nations to provide us with basic, strategic materials for our factories. Witness, for example, what happened to the Moa Bay Mining Co. in Cuba. It was set up with the help of the previous administration and was to become