rather dramatically in the last war, and we did not want to get caught twice in the same way. So there has been a lot of study since the last war, both by private and public agencies. The Munitions Board has been at work on it for 20 years. So that when we started a year ago we had a good picture of all the possible shortages we might meet, and we began at once an attempt to supply those shortages and to build up stock piles of certain things which we knew in advance could not be developed, or we thought we knew in advance they could not be developed in the United States in sufficient quantities. So we began the acquisition of stock piles in antimony, asbestos, chromite, graphite, industrial diamonds, manganese ore, mica, quartz crystals, tin, and tungsten ore. In addition to that, the effort has been supplemented by buying through Government funds in some manner or another minerals like copper and zinc which are not designed primarily for stock piles, which might be called revolving stocks, which will go into industry about as fast as they are received. This effort has been pushed as vigorously as we know how, but up-to-date we are very far short of the stock piles which we think are necessary for an emergency. I may say that funds became available for this effort by the Government too late, shipping conditions were already disturbed, and the requirements of industry had already begun to expand rapidly.

Senator O'MAHONEY. Well, it is several years since Congress passed what it believed to be the strategic minerals bill.

Mr. LEITH. The money, Senator, did not actually become available until late in 1939 and early 1940. Even then the full amount was not available, so the buying program did not really get under way until early in 1940 and fully under way until after the middle of 1940. Senator O'MAHONEY. When that buying program began, what were the minerals which were sought?

Mr. LEITH. The list that I have just given you.

Now, I should like to indicate generally the nature of this effort that has been made. While we are far short of the goal, considerable progress has been made, and I think every possible source has been considered, together with all the means that we could think of, to get a better result than we have now accomplished.

In the first place, we have used the field studies of the Bureau of Mines and the Geological Survey. They have had 25 to 30 parties each in the field studying all possible domestic resources of these various materials. They have reported to us continuously on their results. In fact, in some respects we have helped plan the work of these parties. As information has come to us of possible developments in the West, we have immediately raised the question with the Geological Survey and with the Bureau of Mines, and they have usually been able to bring in for us prompt answers on questions of that sort. We have also, through the Bureau of Mines, encouraged and endorsed and helped to get funds for experimental processes of various kinds and for pilot plants which would make available some of the low grade and marginal ores which we knew existed in this country. There has been quite a variety of activity of that sort. In manganese, for instance, the Bureau of Mines is spending a fund of $2,000,000 allotted by Congress to the study of various methods of securing manganese from low grade deposits, and a large volume of such work is now going on.

In addition, I might mention that the Bureau of Mines Statistical Service has been of the utmost use in this situation. It has been enlarged at our request, and we use it daily and continuously. The work of these two Washington organizations has been most effective and most useful. They have covered that ground west of the Mississippi River very thoroughly. They have a large volume of work now under way, and we want it to go forward.

Secretary Ickes yesterday urged that adequate provision be made for the carrying on of this work and for its enlargement. We would like to endorse that request as a definite part of this war effort. I do not mean to endorse any particular sum he might have asked for. I do not know what it will cost. But, at least, we want adequate funds for what we regard as a very essential, vigorous effort.

Furthermore, we have caused to be organized by the National Academy of Sciences a technological committee to study processes in various minerals for the greatest recovery of low grade and marginal deposits. This committee was organized in the middle of last summer. It has been enlarged from time to time and now consists of more than 80 members, all of them picked men from the various industries concerned. This committee has reported to us on manganese processes, tungsten processes, chromite processes, and processes for manufacturing tin, and so on. The tin smelter in Texas today is being built to operate according to processes recommended by this committee.

A large number of the projects which this committee has considered and recommended apply to western ore mines. This work, I may say, supplements that of the Geological Survey and the Bureau of Mines. They have worked continuously with the Geological Survey and the Bureau of Mines and in most cases have had representatives of the Bureau of Mines and the Geological Survey on the different committees tackling these questions.

So, in effect, we have enlarged this technological service and covered just about all there is in the country in the way of talent to study this subject.

In addition to that, we have had, of course, the benefit of the work of the various State surveys and the engineers of the power commissions. Then, too, many railroads, chambers of commerce, and industrial associations have had specialists on the job, who have brought in a vast mass of information. With that as a background, we have then recommended procedure, so that the work could go forward on specific projects approved by these various organizations. I may say in advance that already we have counted up something like 45 enterprises west of the Mississippi River that are the outcome of the kind of review work that I have indicated, all of which have been recommended and endorsed by the O. P. M. We have under consideration many more which will come in just as fast as we can get the information. I may say that, in total, we have probably examined several hundred possibilities west of the Mississippi River. With this information at hand, then, we have gone to the R. F. C. for whatever help is necessary to bring out the minerals. The R. F. C. has operated through the Metals Reserve and Defense Plant Corporations. They have made many contracts for ores on a long-time basis and at prices which would bring these ores out. I may say that, generally speaking, the R. F. C. has not set the prices for these ores

which are now coming out of the West or are planned to come out of the West. They have gone to the people concerned. They have studied the situation and have asked these people how much money would be necessary to bring a certain amount of ore out. They have accepted that price and made a considerable number of purchase contracts on the 3-year basis to bring out the material. In some cases they have made direct loans; in other cases they are actually furnishing the money for the plant construction.

Senator O'MAHONEY. What is the distinction between those two methods? You say in some cases they have made direct loans, and in other cases they have furnished the actual money.

Mr. LEITH. In some cases they make loans to companies just as loans; in other cases they have just stepped in and owned the plant. For instance, the R. F. C. owns the tin smelter out and out; it is a Government enterprise.

Senator O'MAHONEY. It is owned and operated by the Metals Reserve Corporation, is it?

Mr. LEITH. Yes. The actual construction and operation was delegated to another company, but only on a management-fee basis. They are doing exactly the same thing in another case. The Government is spending money for the chromite plant out in Montana, but Anaconda is opening up the property, is building the plant, and will operate it simply on a management-fee basis, without profit. Senator O'MAHONEY. Who is operating this tin plant?

Mr. LEITH. The Dutch company.

Senator O'MAHONEY. Dutch Shell?

Mr. LEITH. No; Dutch Billiton, of the Dutch East Indies.
Senator O'MAHONEY. Where is its headquarters?

Mr. LEITH. In the Dutch East Indies; but they are people who have had vast experience in smelting these ores, and after reviewing 'the whole situation

Senator O'MAHONEY (interposing). In view of the occupation of Holland by Hitler, do you know to what extent this company is, at least, under the power of the German Government?

Mr. LEITH. Well, I think all the indications are that the Dutch East Indies are trying to defend themselves against the Germans. At any rate, that question has been carefully investigated by the R. F. C., and they are satisfied with the good faith of this Dutch company.

Major HEISS. I do not think there is any question at all, Senator, that the Axis Powers have no control over the Dutch tin smelting outfit; they have cleared out entirely, sir.

Senator O'MAHONEY. Why was it necessary to turn an enterprise of this intimate character over to a foreign company?

NO AMERICAN EXPERIENCE WITH TIN SMELTING

Mr. LEITH. We had no tin-smelting enterprise in this country. We did not have the talent, experience, or the process. When the question came up of building a tin smelter, we were overwhelmed with proposals of all sorts. There were perhaps 15 or 20 different processes put up by different people, some of them just in the laboratory stage, none of them established on any commercial basis. We turned this

61550-42-pt. 1——9