Hon. HENRY M. JACKSON, AMERICAN MINING CONGRESS, Washington, D.C., November 16, 1973. Chairman, Committee on Interior and Insular Affairs, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: We have seen, and are highly appreciative of, the in. clusion in S. 1570 of a priority for fuels for use in the exploration, development, and extraction of fuels as well as transportation of such fuels. Under your leadership, and in accord with the Mining and Minerals Policy Act of 1970, the Senate Interior and Insular Affairs Committee and the Congress have determined that the national economic prosperity and national security base are conditioned upon a paramount national policy of the fostering, promotion and development of a sound domestic mining industry. The mining industry now finds it extremely difficult to maintain current capacity because of the critical shortages of the supplies necessary to do the job of supplying the mineral needs of the nation. For example, the current supply shortages of roof bolts, diesel oil, ammonium nitrate, electrical cable, and certain machinery and replacements parts are of such an order of magnitude as to threaten imminent shutdown of much of the mining industry. You have previously recognized the need for certain mineral priorities, as contained in S. 1570, but due to the interdependence of the industry those priorities must embrace the mining of all minerals. As you know, metals such as copper, lead, and zinc, etc. are basic to all industry, and minerals such as phosphate, potash, and sulfur are vital to produce fertilizer for food production. Therefore, we respectfully solicit your good offices in seeking amendment of S. 2589 so as to provide for a priority treatment in mining of all minerals by the allocation of residual fuel oil and refined petroleum products in such amounts and in such manner as may be necessary for the maintenance of exploration for, and production, processing and extraction of, minerals, and for required transportation related thereto. We are also communicating with Senator Fannin and Senator Hansen with respect to this matter, and we most urgently solicit your help. With warmest personal regards always, I am J. ALLEN OVERTON, Jr., President. AMERICAN SIGN AND INDICATOR CORP., Spokane, Wash., November 23, 1973. Hon. HARLEY O. STAGGERS, tives, Washington, D.C. DEAR CONGRESSMAN STAGGERS: Further to my letter of November 21, 1973 (copy attached), we are hopeful that no mention of "lighted advertising" will appear in the House version of the Emergency Energy Bill. In the event the House Bill does contain language similar to that in the Senate Bill, we recommend the following underlined language be inserted in the section relating to Emergency Fuel Shortage Contingency Plans: ... restrictions against the use of fuel or energy for nonessential uses such as lighted advertising (except public service information devices such as clocks, thermometers, calendars, weather and news) and recreational activities; We believe that this action is certainly in the public interest and respectfully request your committee's consideration of our recommendation. Sincerely, LUKE WILLIAMS, Jr. [Enclosure.] AMERICAN SIGN AND INDICATOR CORP., Hon. HARLEY O. STAGGERS, November 21, 1973. DEAR CONGRESSMAN STAGGERS: I am enclosing a copy of a wire which we sent Senator Jackson and others relative to the language in the Senate version of the Energy Bill which we feel will impose a drastic burden and penalty against the business community far beyond the electrical advertising companies. In support of this I am enclosing a copy of a letter I received from a sign company in Oregon that describes the penalty imposed on this business and other businesses because of the arbitrary decision by Governor McCall. It should be noted by the Congressional leaders that Governor McCall's decision had such a dramatic and negative impact on the business community in Oregon that he rescinded the order against illuminated advertising last Tuesday. If the House does concur with the Senate version of the Energy Bill relative to illuminated advertising displays, we respectfully request that it be better defined and that it specifically exclude clocks, thermometers and public information devices. We have voluntarily disconnected all of the illuminated displays in conjunction with our public service displays and they were exempt from restrictions in Oregon because of the vast number of people benefiting from this public service. We have reduced the hours of operation which has reduced the energy consumption by from 25-48%. More than 100 mililon Americans are using the time and temperature public service displays throughout America each day, which are generously sponsored by more than six thousand financial institutions across the country, and the amount of energy they use is miniscule. We believe that this action is certainly in the public interest, and respectfully request your consideration of this request. The over 15,000 truck drivers of the household goods movers must have energy legislation providing for authority for fuel rationing of diesel fuel. As irregular route carriers, we do not possess fuel terminals. Our drivers must have opportunity to buy diesel fuel at retail at every point in the U.S. Allocations at wholesale does not help. Our ability to provide service to military and civilian household goods and high value products will be downgraded unless a rationing system is authorized. This is an urgent request that rationing authority be included in pending legislation. Senator HENRY M. JACKSON, ELMER H. OSTERMEYER, Vice President-General Manager. JOPLIN, MO., November 12, 1973. DEAR SENATOR JACKSON: I am writing you about the energy situation because you and the Senate Interior Committee, that you chair, have been concerned and are trying to do something about it. The President recently requested authority to develop and produce from the Naval Oil Reserve at Elk Hills, California. This would be dangerous, I think, as this reserve was set aside years ago as an emergency reserve to be used in case of war. It shouldn't be used in a domestic energy crisis. Another request was that controls should be voluntary. This energy crisis is serious and should have mandatory controls with stiff penalties. We tried voluntary in price and wage controls and it didn't work. We also tried it on fuel oil. A government report released this week indicates that fuel oil exports in 1973 will drastically surpass 1972 despite a serious shortage in America. A cost of living council study indicates that 53.3 million gallons of fuel oil will be exported during 1973, a 284 per cent increase over 1972. Another request was to let the administration tap the Highway Trust Fund to help mass transit companies in the larger cities. This congress just tapped this trust fund this year for that. I think it would be far better and benefit all Americans most to use some of this Highway Trust Fund to help finance an energy research and development program. This energy situation is very serious and should be figured on a long time proposition. Why not, at this time, start cutting down on the large, powerful motors being used in passenger automobiles, which guzzle the gasoline. Maybe our research could come up with a gasoline substitute. Very sincerely, [Telegram] EDWARD C. SNYDER. Senator HENRY JACKSON, PUEBLO ROCK WOOL Co., Pueblo, Colo., November 14, 1973. Reference Senate bill 2589. Senator Moss is submitting an amendment to substitute a new section 306 to referenced bill. Substitution is in essence his Senate bill 861 about which we have corresponded previously. We believe Senator Moss's approach of an incentive is the best way to accomplish improved insulation, glazing, caulking and humidification on existing homes. Strongly urge your support of this provision. MARION E. DREW, General Manager. Hon, HENRY H. JACKSON, ROADSIDE BUSINESS ASSOCIATION, Minneapolis, Minn., November 12, 1973. Committee on Interior and Insular Affairs, Washington, D.C. DEAR SENATOR JACKSON: The Roadside Business Association representing sign users, highway advertising companies and manufacturers of outdoor advertising which primarily give directional information to motorists on rural highways about lodging, food, gas, attractions, and similar services of interest to the traveling public, voted at it's annual meeting last Friday to urge all Roadside Business Association Members to voluntarily reduce usage of electrical energy by 25% during the current emergency. Although the electrical usage by Roadside Business Association Members represents only a fractional part of 1% of the total energy consumed, Roadside Business Association takes this action as a means of fully cooperating to meet the natural energy crisis and of encouraging other voluntary programs. Sincerely yours, RICHARD BORDEN, President. GOVERNORS STATE UNIVERSITY, Park Forest South, Ill., November 14, 1973. Hon. HENRY M. JACKSON, DEAR SENATOR JACKSON: Enclosed is a copy of the original draft of an article which will appear later this week in the Perspective section of The Chicago Tribune. Since writing this initial article on the energy crisis, I have expanded considerably on my concept of a two-tier system of energy resource allocation. If you and your committee would like to hear more about the operation of this concept as I envisage it, I would be happy to submit a copy of a second article which I have prepared or to speak before your committee. The concept includes industry, automobiles, households and businesses. Sincerely, LOWELL W. CULVER, University Professor, College of Business and Public Service. P.S.-You may not remember my name, but we met at the U.N.-Goldberg dinner held at the Olympic Hotel in Seattle several years ago. I was then a professor at Pacific Lutheran University in Tacoma. THE ENERGY CRISIS AND THE LESS AFFLUENT: THE CASE FOR A TWO-TIER SYSTEM OF ENERGY RESOURCE ALLOCATION (By Lowell W. Culver, University Professor, College of Business and Public Service, Governors State University Seldom has our nation in peacetime been faced with an issue of such far-reaching potential for disruption of our economy and lifestyle than the present energy crisis. The kinds of action taken by the national government in the coming months will, in large measure, determine the extent to which these disruptions can be minimized. One possible strategy is a two-tier system of energy resource allocation. Shortages of scarce commodities and the resulting inflation tend to affect different income levels unequally. The greatest sufferers will be the poor and those with moderate incomes, who also require fuel for heating, electricity for lighting and cooking and gasoline for their automobiles, if they in fact own one, unless a system which causes a sharing of the burden is developed. Without such a system, those that can afford gasoline, electricity, fuel oil and natural gas at any price will continue to obtain what their lifestyles require, as others are priced out of the market. In effect, those who have contributed most to the energy crisis through their phenomenal consumption of energy resources would suffer least. The free market becomes a very unfair allocator of scarce basic resources, when some must suffer while few restrictions are placed on others. A two-tier allocation system, similar to that operating for gold, would allot a certain portion of the energy resources at a price all can pay, with any excess beyond this available at prices determined by the free market. Let us assume that a determination is made which allots 40 gallons of gasoline to each family per month at a price of 40 to 45 cents per gallon for regular blend (with the basic price depending on the locality) and a somewhat higher price for premium. Beyond this would be a secondary market for which price would be the only regulator. The price of gasoline in this secondary market would be close to the basic price in the initial phase of rationing, unless the initial price included a heavy federal tax. Otherwise, the price would be allowed to fluxuate with the availability of gasoline. Prices in this secondary market could conceivably rise to $1.00 per gallon, while the basic rate remained relatively stable. In effect, the secondary market would subsidize the first, so that all elements of society would be able to afford at least the basic allotment, and a growing shortage would not be a detriment to the less well-off. The basic allocation could, of course, be altered according to changing circumstances. Moreover, consideration would have to be given to travelling salesmen, families in which these are two or more full-time employees, doctors and farmers who would conceivably be granted larger basic allotments. Since gas would be available "at a price," no black market should develop. Moreover, if the less affluent wish to sell their gas coupons at a profit. so much the better for them if they are able to add to their limited income in that way. A major problem might develop if there is insufficient gasoline for the second market. Some form of regulation of the petroleum industry will be necessary to insure that artificial shortages are not created. Gradually, people will shift to smaller automobiles and alternative systems of transportation, more efficient systems will be developed for industry, appliances will become more efficient and, hopefully, new sources of energy will be forthcoming. The alternatives to a two-tier system are not pleasant. Gradually rising prices for gasoline will eventually deny certain elements of our society use of their automobiles. Moreover, serious dislocations in business and industry will occur if only the affluent can afford to drive automobiles. Thousands would be laid off in the auto, tire and auto parts industries; shopping centers geared to the automobile, drive-in theaters and the fast-food trade, among others, would be severely hit if alternative systems of transportation are not made available. Indeed, not only the less affluent have a stake in a system which affords an equitable distribution of the fuel shortage burden. A similar pricing mechanism should be extended to other energy sources: fuel oil, electricity and natural gas. A determination would be made of the basic energy needs of a specific household, based on location, size of family, type of heating and cooking, etc., for which a basic rate would be paid. In most cases this basic rate would be that which is presently in existence in the locality in question. Any use of energy beyond this basic determination would be paid for at gradually increasing rates, rather than the increasingly lower rates as is now the practice, which provides no incentive to conserve energy. The surcharge would not accrue to the utility initially, except to pay for increases in the cost of fuel at its source. A fund would be established from the increased revenues to stabilize the basic rate over a period of years. Such a system would, for the first time, create definite incentives to the more efficient use of our limited energy resources through disincentives to the wasters of energy, and at the same time insure that all share in the burden of the energy crisis. [Hand delivered telegram] AMERICAN CAN CO., November 13, 1973. Hon. HENRY M. JACKSON, Understand Oregon Senator Hatfield will attempt to amend emergency energy bill today to impose restrictions on non-returnable beer and soft drink cans and bottles. The can industry, one of our Nation's most important, would be devastated if the Hatfield amendment should be adopted. 60.000 jobs and $10 billion would be taken out of our Nation's economy by the Hatfield amendment. It is therefore crucial to the canmaking industry and to the food and beverage packers we supply, that you oppose the Hatfield amendment when your emergency energy bill is under Senate consideration. Senator Hatfield suggests that banning nonreturnable containers will save energy-he is wrong. American consumers rarely return returnable containers more than two to four times. A returnable container will conserve energy only if it is returned fifteen times. The study cited by Senator Hatfield is based on a fifteen trip return ratea trippage return rate that exists in only a few places in the United States. Also, the energy consumed in the process of returning containers to the marketplace offsets the perceived energy savings in the returnable system. Please oppose the Hatfield amendment. Senator Hatfield's bill can be the subject of hearings before the Senate Commerce Committee next year. It would be disastrous to decimate the can industry through an amendment to emergency legislation. H. S. HOWARD, Jr., President. Front Royal, Va., November 12, 1973. Hon. HENRY JACKSON, U.S. Senate, Washington, D.C. DEAR SENATOR JACKSON: In the November 5th issue of Travel Trade there appeared an article concerning your sponsorship of S. 2589 which proposes certain measures to combat the oil shortage. Of concern to the travel industry is the statement in the news article that included in S. 2589 is a provision to ban "advertising to induce increased energy consumption." While the travel industry can and will support a national 50 MPH speed limit and other provisions of this bill, we feel a literal interpretation of any ban on travel advertising would really get carried away by the bureaucrats charged with preparing administrative criteria to enforce the law. It could mean you could not distribute or even display-travel folders. Much less do any other type of advertising. In a talk with Bill Toohey, President of Discover America Travel Organizations this morning. Mr. Toohey advised it was his understanding this section of S. 2589 was aimed at the major oil companies and their advertising. Mr. Toohey did admit there was a danger of some bureaucrat running amuck with the law once it was on the books, however. |