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Sec. 11. That the Secretary of the Interior, with the approval of the President, is authorized from time to time to enter into contracts for necessaries for periods of not exceeding two years, to purchase, to store, to provide storage facilities for, and to sell necessaries at reasonable prices to be fixed by the Secretary of the Interior, with the approval of the President: Provided, That if any minimum price shall have been theretofore fixed pursuant to the provisions of section thirteen of this act, then the price paid for any such articles so purchased shall not be less than such minimum price: Provided further, That nothing in this act shall be construed to authorize entering into contracts under this act after the termination of the war except for the purpose of selling, storing, or otherwise disposing of property on hand, or such as may be necessary to protect the Government on its guarantees under section thirteen. Any moneys received by the United States from or in connec. tion with the disposal by the United States of necessaries under this section may,

in the discretion of the President, be used as a revolving fund for further carrying out the purposes of this section. Any balance of such moneys not used as part of such revolving fund shall be covered into the Treasury as miscellaneous receipts.

SEC. 12. That whenever the President shall find it essential to the successfu prosecution of the war to secure :un adequate supply of necessaries lie is author ized, through the Secretary of the Interior, to requisition and take over, for use or operation by the Government, any undeveloped, insufficiently developed or operated, or idle mineral land or deposit, mine, smelter, or plant and to develop operate, or cause the same to be developed or operated in such manner and through such agency as he may direct. That hereafter during the existing state of war, the Secretary of Agriculture is authorized, under regulations to be prescribed by him, to permit the Interior Department, or any other department, board, or commission of the Government to take from the national forests such minerals as may be needed in the prosecution of the war. Whenever the Secre tary of the Interior, with the approval of the President, shall determine that the further use or operation by the Government of any such mineral land, deposit, mine, smelter, or plant, or part thereof, is not essential for the successful prosecution of the war the same shall be restored to the person entitled to the possession thereof. The United States shall make just compensation, to be determined by the Secretary of the Interior, approved by the President, for the taking over, use, occupation, and operation by the Government of any such mineral land or deposit, mine, smelter, or plant, or part thereof. If the compensation so determined be unsatisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined and shall be entitled to sue the United States to recover such further sum as added to said seventy-five per centum will make up such amount as will be just compensation, in the manner provided for by section twenty-four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. Compensation provided for in this section shall be paid from the appropriation made by section seventeen of this act. The Secretary of the Interior, with the approval of the President, is authorized to prescribe such regulations as he may deem essential for carrying out the purposes of this section, including the operation of any such mineral land or (leposit, mine, smelter, or plant, or part thereof, the purchase, sale, or other disposition of articles used, manufactured, producerl, prepared, or mined therein, and the employment, control, and compensation of employees. Any moneys receiveil by the United States from or in connection with the use or operation of any such mineral land or deposit, mine, smelter, or plant, or part thereof, may, in the discretion of the President, be used as a revolving fund for the purpose of the continued use or operation of any such mineral land or deposit, milie, smelter, plant, or part thereof, and the accounts of each such mineral land or deposit, mine, smelter, plant, or part thereof, shall be kept separate and distinct. Any balance of such moneys not used as part of such revolving fund shall be paid into the Treasury as miscellaneous receipts.

SEC. 13. That whenever the Secretary of the Interior, with the approval of the President, shall find that an emergency exists requiring stimulation of the production within the United States, its insular possessions, Territories, and District of Columbia of any one or more necessaries, and that it is essential that the producers of any one or more of such necessaries shall have the benefits of the guaranty provided for in this section, he is authorized, with the approval of the President, from time to time, seasonably and as far in advance as practicable, to determine and fix and give public notice of what, under specified conditions, are reasonable guaranteed prices, in order to assure such pro

ducers a reasonable profit. The Secretary of the Interior shall, from time to time, establish and promulgate such regulations, with the approval of the President, as he shall deem wise in connection with such guaranteed prices, and in particular governing conditions of delivery and payment and differences in price for any of the several specified necessaries. Thereupon the Government of the United States hereby guarantees every producer of these specified necessaries that, upon compliance by him with the regulations prescribed, he shall receive for any necessaries produced in reliance upon this guaranty within the period, not exceeding two years, prescribed in the notice, a price not less than the guaranteed price therefor as fixed pursuant to this section. Such regulations shall prescribe the terms and conditions upon which any producer shall be entitled to the benefits of such guaranty. When the President finds that the importation into the United States of any of these necessaries produced outside of the United Staes maerially enhances or is likely materially to enhance the liabilities of the United States under guaranties of prices therefor made pursuant to this section and ascertains what rate of duty added to the then existing rate of duty, if any, on each of the necessaries and to the value of each of the necessaries at the time of importation would be sufficient to bring the price thereof at which imported up to the price fixed therefor pursuant to the foregoing provisions of this section, he shall proclaim such facts, and thereafter there shall be levied, collected, and paid upon each of these necessaries, when 'imported, in addition to the then existing rate of duty, the rate of duty so ascertained; but in no case shall any such rate of duty be fixed at an amount which will effect a reduction of the rate of duty upon any of these necessaries under any then existing tariff law of the United States. For the purpose of making any guaranteed price effective under this section, or whenever he deems it essential, in order to protect the Government of the United States against material enhancement of its liabilities arising out of any guaranty under this section, the Secretary of the Interior, with the approval of the President, is authorized also, in his discretion, to purchase any of these necessaries for which a guaranteed price shall be fixed under this section, and to hold, transport, or store, or to sell, dispose of, and deliver the same to any citizen of the United States or to any Government engaged in war with any country with which the Government of the United States is or may be at war, or to use the same as supplies for any department or agency of the Government of the United States. Whenever and wherever it is in his judgment necessary for the effective prosecution of the war the President, through the Secretary of the Interior, is authorized and empowered to establish rules for the regulation of and to regulate the method of production, sale, shipment, distribution, apportionment, or storage thereof among dealers and consumers, domestic or foreign. And moneys received by the United States from or in connection with the sale or disposal of necessaries under this section may, in the discretion of the President, be used as a revolving fund for further carrying out the purposes of this section. Any balance of such moneys not used as part of such revolving fund shall be covered into the Treasury as miscellaneous receipts.

SEC. 14. That whenever the President shall find that limitation, regulation, or prohibition of the use of any of these necessaries is essential in order to ussure an adequate and continuous supply of necessaries, or that the national security and defense will be conserved thereby, he is authorized, from time to time, to prescribe and give public notice of the extent of the limitation, regulation, prohibition, or reduction so necessitated. Whenever such notice shall hare been given and shall remain unrevoked all persons shall, after a reasonable time prescribed in such notice, conform to the order providing such limitation, regulation, prohibition, or reduction. Any person who willfully violates The provisions of this section, or who shall violate any rule or regulation made under this section, shall be punished by a fine not exceeding $5.000, or by imprisonment for not more than two years, or both.

SEC. 15. That every person who willfully assaults, resists, impedes, or intereres with any officer, employee, or agent of the United States in the execution

any duty authorized to be performed by or pursuant to this act shall upon conviction thereof be fined not exceeding $1,000, or be imprisoned for not more than one year, or both.

SEC. 16. That the sum of $500,000 is hereby authorized to be appropriated it of any moneys in the Treasury not otherwise appropriated, to be available until June thirtieth, nineteen hundred and nineteen, for the payment of all mipenses of carrying out the provisions of this act, including personal services,

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traveling and subsistence expenses, the payment for rent, the purchase of equipment, supplies, postage, printing, publications, and such other articles, both in the District of Columbia and elsewhere, as the Secretary of the Interior may deem essential.

The maximum salary to be paid under the provisions of this act shall not exceed the rate of $4,500 per, annum for any scientific, technological, or administrative service, and shall not exceed the rate of $1,800 per annum for any clerical or other subordinate service.

SEC. 17. That for the purposes of this act the sum of $10,000,000 is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, to be available as a revolving fund during the time this act is in effect: Provided, That no part of this appropriation shall be expended for the purposes described in the preceding section : Provided further, That itemized statements covering all purchases and disbursements under this and the preceding section shall be filed with the Secretary of the Senate and the Clerk of the House of Representatives on or before the twenty-fifth day of each month after the taking effect of this act, covering the business of the preceding month, and said statements shall be subject to public inspection.

SEC. 18. That employment under the provisions of this act shall not exempt any person from military service under the provisions of the selective-draft law approved May eighteenth, nineteen hundred and seventeen.

SEC. 19. That the President shall cause a detailed report to be made to the Congress on the first day of each regular session of all proceedings had under this act during the year preceding. Such report shall, in addition to other matters, contain an account of all persons appointed or employed, the salary or compensation paid or allowed each, the aggregate amount of the different kinds of property purchased or requisitioned, the use and disposition made of such property, and a statement of all receipts, payments, and expenditures, together with a statement showing the general character and estimated value of all property then on hand and the aggregate amount and character of all claims against the United States growing out of this act.

SEC. 20. That if any clause, sentence, paragraph, or part of this act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof, directly involved in the controversy in which such judgment shall have been rendered.

SEC. 21. That words used in this act shall be construed to import the plural or the singular, as the case demands. The word “person ” wherever used in this act shall include individuals, partnerships, associations, and corporations. When construing and enforcing the provisions of this act, the act, omission, or failure of any official, agent, or other person acting for or employed by any partnership, association, or corporation within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such partnership, association, or corporation as well as that of the person.

SEC. 22. That the provisions of this act shall cease to be in effect at the end of six months after the existing state of war between the United States and Germany and between the United States and Austria-Hungary shall have terminated and the fact and date of such termination shall be ascertained and proclaimed by the President; but the termination of this act shall not affect the exercise of such authority and power herein granted, as shall be necessary to speedily wind up the affairs of any enterprise already entered upon or to carry out any guaranty or contract made pursuant to the terms thereof, and such termination shall not affect any act done, or any right or obligation aceruing or accrued, or any suit or proceeding had or commenced in any civil case before the said termination pursuant to this act; but all rights and liabilities under this act arising before its termination shall continue and may be enforced in the same manner as if the act had not terminated. Any offense committed and all penalties, forfeitures, or liabilities incurred prior to such termination may be prosecuted or punished in the same manner and with the same effect as if this act had not been terminated.

Passed the House of Representatives April 30, 1918.
Attest:

SOUTH TRIMBLE,

Clerk. The CHAIRMAN. The committee has met this morning for the purpose of considering the bill (H. R. 11259) to provide further for the

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national security and defense by encouraging the production, conserving the supply, and controlling the distribution of those ores, metals, and minerals which have formerly largely been imported, or of which there is or may be an inadequate supply.

This bill passed the House on day before yesterday, and our meeting now is for the purpose of considering the bill and any other matters that may come before the committee.

Senator SHAFROTH. Mr. Chairman, the bill which I have before me is marked “Union Calendar 190, House of Representatives,” I will ask whether this bill, as it is printed here, is the same as that which passed the House.

The CHAIRMAN. It is not. The bill that passed the House has not been printed for distribution. I imagine there were a few errors in it and they had to refer it to the House, but I expect to get the printed bill this afternoon. That is the bill as originally introduced, but some of the amendments as adopted in the House are not in the bill that you refer to and have in your mind.

The committee will hear first Mr. H. H. Lamson.

STATEMENT OF HORACE HOLDEN LAMSON.

The CHAIRMAN. Mr. Lamson, what is your full name?
Mr. LAMSON. Horace Holden Lamson.
The CHAIRMAN. With what firm are you connected ?

Mr. LAMson. The John S. Lamson & Bros., 347 Madison Avenue, New York.

The CHAIRMAN. What is your buziness? Mr. LAMSON. We have been importers and dealers in manganese ores and asphaltums for 65 years.

The CHAIRMAN. The committee would like to have you tell us about the business, as you are familiar with it, in regard to mancanese ores in this country, and the importation of them, and also the production in this country.

Mr. LAMSON. Well, I will say, Mr. Chairman, that I do not know exactly how to address the committee, because I do not think that I have ever been before a Senate committee at any former time. All I can state is from a practical standpoint.

I do not know the full meaning of this bill or what it is going to amount to. I do know that there is not enough high-grade—what is called high-grade ore from an importer's standpoint-to cover anywhere near the demand for it. There is a great deal of low-grade ore, such as would go into the making up of spiegeleisen and ferroManganese. The high grade comes from Caucasus, and some of it comes from Japan. Practically all of the high-grade ore that is coming in by importation at the present time—that is, 85 per cent of the ore—is coming from Cuba, and the consumption of that ore is only forty or fifty thousand tons, and it does not cut much figure as gainst the other ore, which, I understand, is something like 800,000 tons a year.

There is a great deal of ore in the mines of the United States, and here are plenty of mines that can be developed in the United States on the lower grade ore, what you would call practically chemical ore.

great many manufacturers of dry batteries who formerly had to

have 85 to 90 per cent ore, had to take the 80 per cent ore. The result has been that the finished product is not nearly as good as formerly.

Now, it is an important proposition, I should say for the Government, as well as anyone else, because, as I understand it, these batteries are used in ambulances, and are used largely for flashlight batteries for Red Cross work, and it seems to me that some provision ought to be made to allow, anyway, a certain quantity of high-grade ore to come into the United States, because the production is not here; we have never been able to produce it. For instance, I have handled practically the entire output of the Crimora mine, which is one of the biggest producers. Last year I think we had something like five carloads of high-grade ore. That is a pretty small production. That grade would run about 84 to 87 per cent Mn0,, not metallic—I do not figure on metallic when I am speaking of highgrade ore. I do not handle the lower grade ores at all, those that run low in iron and low in copper, because if there is too much copper in it it short circuits in the battery trade, it would short cir- ! cuit the battery.

Dr. MANNING. Mr. Chairman, I suggest that Mr. Lamson make clear the difference between chemical ore and metallurigcal ore.

Mr. LAMON. I should say that metallurgical ore would be used for spiegeleisen and ferromanganese, Ferromanganese would be used in paints and varnishes and dry batteries, and high-class trade of that kind, and in making up some metals, and in also making up potassium permanganate, which they have asked me to come down and tell about, of getting the copper out of that product at the present time. But there are a number of manufacturers who are just starting to make it, and it is almost impossible to tell what the consumption of manganese will be for that purpose. I know two or three new concerns that have just started to make potassium permanganate. It is almost impossible to get at that until they have had some experience and know what quantities they use. I am not a chemist, and only know this from a practical standpoint; that is all, and the uses to which manganese has gone for years. It is also used the high-grade ore--very largely in the glass and bottle trade. For instance, I have shipped to a glass and bottle concern some manganese that came from the Middle West. It was some of the Phelps & Dodge ore, and they came back to me and complained very much, saying that the ore was not right, that they had to use just twice as much as they did of the high-grade ore, and at the price manganese ore is to-day it, of course, makes a great deal of difference to them.

The CHAIRMAX. Do you know about how much manganese ore is used in this country per year?

Mr. LAMSON. Of all grades of ore?
The CHAIRMAN. Yes.

Mr. LAMSON. I should say somewhere in the neighborhood of 800.000 tons.

The CHAIRMAN. And of that amount how much do we produce ?

Mr. LAMSON. I do not know; I saw those figures not a long while ago. I think we produced something like 300,000 tons last year although I could not tell you accurately about that. I have not been. interested enough in the lower grade of ore to go into that matter

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