a major producer of nickel and cobalt for American consum] Actions of the Castro regime have seen that project shut down, the resultant loss of millions of dollars in invested American ca

The pending legislation also deserves special attention becau its potential effect for aiding small business. It directly coin with the spirit of the Small Business Act of 1958. Many small which have been closed down would be permitted to reopen. would put hundreds of miners back to work and help alleviat depressed conditions in the areas where the mines are situated, in Idaho and in other States as well.

In conclusion, I want to emphasize that the program of stabiliz payments provided by my bill will not, automatically, resolve al problems of the lead-zinc industry. There are tariff considerat now under study by the Ways and Means Committee. There's the matter of encouraging basic research in order to find new and thus open new markets for the metals. But the legislation believe, a good start in the right direction until a long-range stabi tion program can be worked out. I urge, therefore, that it be fa ably reported by this subcommittee.

As I said, I feel this legislation is vital to the small producer the State of Idaho. I noted that the chairman of the full commi Congressman Aspinall, wanted to make sure that the people who the large producers do not oppose this type of legislation. Let say for the benefit of the committee members that Mr. Schwab, is president of the Bunker Hill Co. in Kellogg, Idaho, has pa visit very recently to the Nation's Capital, and he told me he in full accord with what we are trying to do, even though this le lation will in no way benefit Bunker Hill and Sullivan or any the other large companies in north Idaho.

It will, however, in our State put back to work a very limited n ber of small producers, and that is exactly what we are attempting do because if we can scatter a few payrolls throughout the mining in north Idaho it will be very beneficial to the economy of the S as a whole.

While some of us really prefer to have the 5,000-ton limitation the legislation as it was introduced last year, I have agreed to along with the 2,000-ton limitation because it is imperative that get some legislation to assist the small lead-zinc producers.

With that, Mr. Chairman, I will yield back my time if I have a left and be glad to listen to other people who are here to test this morning.

Mr. EDMONDSON. I appreciate very much the statement of our d tinguished colleague from Idaho who has been in the front lines the domestic mining industry from the first day of her service h in Congress. I appreciate very much her participation in the sp sorship of this legislation.

Does anyone have any questions of any of our colleagues on t committee who have testified?

The gentleman from Colorado.

Mr. DOMINICK. Mr. Chairman, I would like to ask Mr. Montoya, I could, a question or two.

This situation with the decline of the lead and zinc industry h been going on for some time, has it not?

Mr. MONTOYA. Yes, it has.

Mr. DOMINICK. In fact, it started really, did it not, ever since we found that we were unable to compete pricewise with foreign imports? Mr. MONTOYA. Well, that is part of it, I would say most of it.

Mr. DOMINICK. So that this occurred really not only in this last administration but started even before that. This is the point I was making.

Mr. MONTOYA. Well, I might cite some figures for the gentleman. Mr. DOMINICK. I wish you would.

Mr. MONTOYA. That the U.S. mine output of zinc declined from 532,000 tons in 1957 to 412,000 tons in 1958, but increased to 425,000 tons in 1959. The production in 1959 was 3 percent higher than that in 1958, but production in both of these years was lower than in any earlier year since the great depression of the 1930's.

Mr. DOMINICK. Thank you, Mr. Montoya. I am sure, with your knowledge of the mining situation which you display so ably before us, that those of us who have been active in mining, which includes myself, I might add, realize that a temporary subsidy can sometimes create problems as well as benefits.

I wondered whether you or any of the others have given consideration to a long-term bill which would provide quota systems for our domestic miners so that a share of the domestic market could be retained for domestic production.

Mr. MONTOYA. We presented that problem before by proposed legislation. We appeared before the proper commission in the hopes that a quota system might be devised. We have done everything possible to try to stimulate the industry.

I will admit that legislation is not the complete panacea, but I think that it should be supplemented by administrative action also.

Mr. DOMINICK. Would you feel that a quota system provides a reasonable stimulant for the domestic industry?

Mr. MONTOYA. If it is an amendatory quota system, yes.

Mr. EDMONDSON. Would the gentleman yield at that point?

Mr. DOMINICK. Yes.

Mr. EDMONDSON. Is the gentleman talking in terms of a production quota assigned to different countries, or is he talking in terms of an import quota which we have, and have had in effect since October 1948, which has limited the amount of lead and zinc coming into the country? I wasn't quite clear in my own mind.

Mr. DOMINICK. I am talking about a marketing quota, but more stringent than one we have had in the past, which has been relatively fruitless in many industries, to be perfectly truthful.

Mr. MONTOYA. May I qualify my answer in view of the gentleman's allusion to a marketing quota. I believe there should be a quota on imports geared to stimulate our domestic industry. That would be my answer to the gentleman's question.

Mr. EDMONDSON. Thank you.

Mr. ASPINALL (presiding). Thank you very much.

The next witness will be one of our colleagues, a new colleague, Hon. Vernon W. Thomson of Wisconsin.

STATEMENT OF HON. VERNON W. THOMSON, A REPRESENTA IN CONGRESS FROM THE STATE OF WISCONSIN

Mr. THOMSON. Mr. Chairman and members of the committ may come as some surprise to you that this problem extends fro Southwest and West into the Middle West in the State of Wisc Lead and zinc mining in that area was one of the original acti of the pioneers who moved in with the fur trade after Marquett Joliet had come down the Great Lakes and down the Wisconsin to the Mississippi.

Mr. ASPINALL. Mr. Thomson, it might be of interest to y know that this committee is well aware of the lead and zinc dep in Wisconsin.

Mr. THOMSON. It has made a significant contribution to the omy of the State of Wisconsin from the time of the original pio there. It supplied the lead that was needed to help Abraham Li who came up there in 1832 to drive the Indians out of the Sta Wisconsin. It has long been an important industry. The first tal of the State of Wisconsin was at Belmont, Wis., because that the lead and zinc area of the State.

But for a long period of time the gradual encroachment of imp of these very vital defense minerals has curtailed the operation o lead and zinc industry in our State. I understand that industry resentatives expect to give you the statistics on the production and decline in that production in the State of Wisconsin.

For many years we have from our State made representation the Congress, to the Tariff Commission, to the State Department, to the White House. I was quite encouraged last fall, after the po veto of the fine step that was taken by this Congress to pass a that Mr. Kennedy said that he would appoint a Committee on sources and Resources Development to study the needs in this are well as others. And I am quite hopeful that after that Commis concludes its studies they will be willing in the executive departm to approve legislation that is enacted by this Congress.

We think that there is no hope in the escape clause. We th there is very little hope in the State Department, and that we m insist very vigorously in this Congress that some consideration given to these industries which are so vital to the economy of our c munities and to the defense of America, that they will be willing approve a bill which can be drafted by this committee.

So I am very hopeful. I submitted a proposal similar to the that was enacted last year and I am most hopeful that this commit will expedite its hearings on these matters and that we may successful.

Just this week in the paper from my home district there was t report of another 30 miners who have been laid off. In a town of S people that means 15 or 20 percent of the breadwinners, and the people are families who have historically, for generations, been mine in that area. And it is tragic to have such reports. So I join wi the other authors of these bills in urging a very determined effort enact legislation which will restore some stability to this industr We can't close mines down and open them up with crash program It is impractical and it is very expensive.

I think that a bill such as has been suggested in several forms here will provide a stability to the economy, it will be a guarantee of adequate minerals for defense; and in the long run it will be cheaper for the people of America to stabilize this industry than to follow a course which provides a feast or famine and great expense to the taxpayers to pursue such a policy.

I would like to ask, Mr. Chairman, in the event that the industry representatives do not present the statistics as they relate to the State of Wisconsin, that I may have the privilege of supplementing my statement with those statistics in this record.

Mr. ASPINALL. Unless there is an objection you shall have the privilege, providing the statement is approved by the chairman of the subcommittee and the ranking minority member. Hearing no objection, it is ordered.

I did not mean to be facetious when I interrupted you at the beginning, Mr. Thomson, but your predecessor was always on the job. He was a member of this committee, and he kept us very well advised as to the mining situation in the State of Wisconsin, particularly in his district.

Mr. THOMSON. I did not interpret your remarks, Mr. Chairman, to be facetious. I know how diligently and how long you and this committee have worked on this problem and I am aware that you are pretty well informed as to the needs in this area.

Mr. ASPINALL. We were very proud of our association with Mr. Withrow.

Are there any questions of Mr. Thomson?

Thank you very much.

Mr. DOMINICK. Mr. Chairman, I wonder if I could be recognized. Mr. ASPINALL. The gentleman from Colorado.

Mr. DOMINICK. I want to congratulate Mr. Thompson on his obvious knowledge and interest in the situation in his State, and also in the lead and zinc mining industry, but I want to pursue a little further, if I might, the matter I brought up with Mr. Montoya. What would be your feeling and your opinion of the advisability of trying to reserve for U.S. producers a share of the U.S. market in lieu of, or in addition to, a subsidy program such as we have here? Mr. THOMSON. I think the quota system as it is now operating is very inadequate because the decline in the production in Wisconsin has been progressive since 1958. This present method is not working. I am not sure that we can work out a quota system that would meet with the approval of the Congress and the administration. But I am very anxious to reestablish and retain a larger share of the market for domestic producers, and I think this matter of the whole program must be reappraised with a determined intention of giving some very legitimate and needed protection to American producers and Ameri

can wage earners.

Mr. DOMINICK. There has been comment among many of the people that I have talked to that the difficulty with a subsidy is that it creates a stimulus for opening of mines, development of mines, and marketing of the ore, and that the subsidy is always subject to being cut off, the subsidy is perhaps in many instances providing stimulus for the operation of uneconomical mines. What would be your comment on these criticisms?

Mr. THOMSON. I don't view this as a particular subsidy. I this as a stabilization program because I don't think the subsidy was provided or the stabilization that was provided in the bill 86th Congress was adequate to stimulate any unnecessary pr tion. But I think it would have been very helpful in reestabli some jobs in efficiently operated mines. It would have given some assurance of continuity of operation, and I don't consider in the nature of a subsidy, but a program to stabilize an industry is very vital to the welfare and defense of this Nation. Mr. ICHORD. Mr. Chairman.

Mr. ASPINALL. The gentleman from Missouri, Mr. Ichord.

Mr. ICHORD. I do agree with Mr. Thomson and Mr. Dominick some means, some way, should be made available for the dom producers to have a larger share of our consumption. I believe at the present time 50 percent of the lead that is being consumed i United States is imported.

I come from a great lead mining district, too, Mr. Thomson, w supposedly produces one-third of the lead mined in the United St But as I understand your bill and Mr. Edmondson's bill, my dis will not be benefited in any way by the legislation since we do only large producers. Of course, conditions in those mines are same as they are in the small mines, with approximately 50 per of the lead miners being unemployed at the present time, and lead mining area having been declared by the Department of L as a depressed area.

If a producer produces under 5,000 tons of lead or zinc and the ent price for lead is 11 cents a pound, your bill provides a direct ment to the producer in case of lead of 6 cents a pound-is that rig Mr. THOMSON. Yes.

Mr. ICHORD. I am wondering if you have any idea what effect bill will have on the present price of lead. Will it not put more on the market and as the supply increases the price will decrease cording to the law of supply and demand?

Mr. THOMSON. We are hoping it will put more domestic lead the market.

Mr. ICHORD. Certainly it would put more domestic lead on the m ket. But I am wondering how in any way my miners would be be fited by this legislation.

Mr. THOMSON. Well, testimony that was given by other auth of proposals here has suggested that these measures may not ben the big miners such as they might like to be benefited. But as I und stand their testimony they think that this is a proper beginning a that some of the large miners are in favor of this approach at t time.

Mr. ICHORD. What do you think of the bill Mr. Aspinall has troduced?

Mr. THOMSON. I am not going to testify to a specific bill. I wa to leave it up to this committee to work out a program that will acceptable to the Congress and to the administration and helpful this industry. I think that will be the responsibility of this co mittee to come out with a bill that will receive the support of t Congress.

(Representative Edmondson presiding.)