The salaries of the Director and Assistant Director shall be $12,000 per annum and $10,000 per annum, respectively. In the absence of the Director his duties shall be performed by the Assistant Director. [(c) It shall be the duty of the Director, and he is hereby authorized (a) with the approval of the Secretary to make plans for, to issue directives to, and to develop an over-all pattern integrating the work and functions affected by this Act of departments and agencies of the executive branch of the Government now or hereafter concerned with the mineral policies of the United States in order to carry out the policies established in section 2 of this Act; (b) to perform the other functions hereinafter specifically authorized; (c) to carry out such other duties as the Secretary may direct; and (d) to prescribe rules and regulations for carrying out the purposes of this Act in the simplest manner. The Director shall be under the general direction of the Secretary of the Interior, whose duty it shall be to carry out the intent of the Congress with respect to this Act, as declared in section 2 hereof. [(d) The Director may select, employ, and fix the compensation of such engineers and other experts as may be necessary to carry out the purposes of this Act without regard to the civil-service laws and the Classification Act of 1923 and shall employ such other staffs as he may deem necessary. [SEC. 4. All of the functions of the Office of Premium Price Plan for Copper, Lead, and Zinc, pertaining to the administration of said plan are hereby transferred to the Division, together with all pertinent records, equipment, and such personnel of said Office as the Director may deem necessary and desirable to effectuate the purposes of this Act. [SEC. 5. To carry out the purposes of this Act development and conservation rayments shall be made hereunder to producers for newly mined ore and shall be made at such rates within the limitations defined in this Act so as to encourage development and exploration and make adequate allowance for amortization, depreciation, and depletion and shall include a reasonable profit to the producer based upon the values of the metals contained in the ore. Development and conservation payments shall be made only on ores of metals and minerals determined strategic or critical pursuant to section 2 (a), Public Law 520, Seventyninth Congress, chapter 590, second session. Depreciation allowances shall be computed according to the rules and regulations of the Bureau of Internal Revene, and it shall be a condition of the making of all such payments that recipients thereof shall pay no royalties on such portion of the amount received by the producer as is in excess of market prices. [SEC. 6. (a) Development and conservation payments for any particular metals or minerals contained in an ore shall be in addition to the average price received by the producer of the metal or mineral for the month in which mined: Provided, That no development and conservation payment shall be made to a producer when the price received by such producer plus such payment would exceed, for Copper 28 cents per pound, lead 18 cents per pound, and zine 18 cents per pound, and for other metals and minerals the highest price paid during the war years of 1942 to 1946, inclusive. These maximum limitations shall apply unless in the opinion of the Director special consideration is necessary for the stimulation of a particular project or for the production of a particular metal. [(b) All of the metals, minerals, and ores on which development and conservation payments are made shall be sold by the producers in the open market: Provided, That the President may by Executive order direct the Reconstruction Finance Corporation to purchase all such metals, minerals, and ores or any portion thereof. All metals, minerals, and ores purchased by the Reconstruction Finance Corporation pursuant to such Executive order shall be transferred to the national stock pile established pursuant to Public Law 520 (Seventy-ninth Congress, ch. 590, second session). [(c) The Bureau of Federal Supply of the Treasury Department shall reimburse the Reconstruction Finance Corporation to the extent of the current market price for all metals, minerals, and ores placed in the national stock piles under this section and such credits may be expended for purchases and development and conservation payments over and above the limitations imposed in section 7(a) hereof. [SEC. 7. (a) All disbursements, as authorized by this Act, shall be made by the Reconstruction Finance Corporation, and shall include purchases or payments for minerals, metals, and ores newly mined or recovered from mines and shall not exceed $100,000,000 in any one year. [(b) There is hereby authorized to be appropriated sums sufficient to carry out the purposes of this Act.] That it is the policy of the Congress that every effort be made to stimulate the exploration, development, mining, and production of certain metals and minerals by private enterprise to supply the industrial, military, and naval needs of the United States by providing for the development and conservation of those materials in order to decrease and prevent, wherever possible, a dangerous and costly dependence of the United States upon foreign nations for supplies of such materials. Sec. 2. (a) That the premium price plan for copper, lead, and zinc is hereby extended for a term of two years from June 30, 1947, in accordance with the provisions of this Act. (b) Notwithstanding any other provision of law, the Reconstruction Finance Corporation is authorized and directed to make subsidy payments for the fiscal years ending June 30, 1948, and June 30, 1949, with respect to copper, lead, and zinc, in the form of premium payments not to exceed in the aggregate $70,000,000 and not to exceed $35,000,000 in the fiscal year ending June 30, 1948: Provided. That (A) such premiums shall be paid on ores mined or removed from mine dumps or tailing piles subsequent to June 30 1947, and before July 1, 1949, though shipped and/or processed and marketed subsequently thereto; that (B) the premium price plan for copper, lead, and zino shall be extended until June 30, 1949. and (1) adjustments shall be made to encourage exploration and development work, (ii) premium payments for any particular metal contained in an ore shall be in addition to the amount received per unit by the producer of the metal, but no payment shall be made to a producer when the market price plus such payment would exceed the limits of the plan in effect June 30, 1947. which maximum limits shall not be reduced unless necessary in order to make individual adjustments of income to specific mines, and may be exceeded only when the Director shall determine special consideration is necessary for the stimulation of exploration of particular projects. Sec. 3. The Secretary of Commerce may select, employ, and fix the compensation of such engineers and other experts as may be necessary to carry out the purposes of this Act without regard to the civil-service laws and the Classification Act of 1923. Sec. 4. To the end that the provisions of this Act be carried out in the simplest manner, the Director of the Office of Premium Price Plan, with the approval of the Secretary of Commerce, shall prescribe rules and regulations governing the operation of the premium price plan, except with respect to the methods of disbursement of premium payments. All such rules and regulations shall be published in the Federal Register. Seo. 5. There is hereby authorized to be appropriated sums sufficient to carry out the provisions of this Act. Sec. 6. This Act shall be known as the "Premium Price Plan Act of 1947". Amend the title so as to read: “A bill to stimulate exploration, development. and production from domestic mines by private enterprise, and for other purposes." EXHIBIT 48 [H. Rept. No. 755, 80th Cong., 1st sess.] STIMULATING EXPLORATION, DEVELOPMENT, AND PRODUCTION FROM DOMESTIC MINES BY PRIVATE ENTERPRISE JULY 1, 1947.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. WELCH, from the Committee on Public Lands, submitted the following REPORT The Committee on Public Lands, to whom was referred the bill (H. R. 1602) to establish within the Department of the Interior a National Minerals Resources Division, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. The amendments are as follows: Strike out all after the enacting clause and insert in lieu thereof: "That it is the policy of the Congress that every effort be made to stimulate the exploration, development, mining, and production of certain metals and minerals by private enterprise to supply the industrial, military, and naval needs of the United States by providing for the development and conservation of those materials in order to decrease and prevent, wherever possible, a dangerous and costly dependence of the United States upon foreign nations for supplies of such materials. "SEC. 2. (a) That the premium-price plan for copper, lead, and zinc is hereby extended for a term of two years from June 30, 1947, in accordance with the provisions of this Act. "(b) Notwithstanding any other provision of law, the Reconstruction Finance Corporation is authorized and directed to make subsidy payments for the fiscal years ending June 30, 1948, and June 30, 1949, with respect to copper, lead, and zine in the form of premium payments not to exceed in the aggregate $70,000,000 and not to exceed $35,000,000 in the fiscal year ending June 30, 1948: Provided, That (A) such premiums shall be paid on ores mined or removed from mine dumps or tailing piles subsequent to June 30, 1947, and before July 1, 1949, though shipped and/or processed and marketed subsequently thereto; that (B) the premium-price plan for copper, lead, and zinc shall be extended until June 30, 1949, and (i) adjustments shall be made to encourage exploration and development work, (ii) premium payments for any particular metal contained in an ore shall be in addition to the amount received per unit by the producer of the metal, but no payment shall be made to a producer when the market price plus such payment would exceed the limits of the plan in effect June 30, 1947, which maximum limits shall not be reduced unless necessary in order to make individual adjustments of income to specific mines, and may be exceeded only when the Director shall determine special consideration is necessary for the stimulation of exploration of particular projects. "SEC. 3. The Secretary of Commerce may select, employ, and fix the compensation of such engineers and other experts as may be necessary to carry out the purposes of this Act without regard to the civil-service laws and the Classification Act of 1923. "SEC. 4. To the end that the provisions of this Act be carried out in the simplest manner, the Director of the Office of Premium Price Plan, with the approval of the Secretary of Commerce, shall prescribe rules and regulations governing the operation of the premium-price plan, except with respect to the methods of disbursement of premium payments. All such rules and regulations shall be published in the Federal Register. "SEC. 5. There is hereby authorized to be appropriated sums sufficient to carry out the provisions of this Act. "SEC. 6. This Act shall be known as The Premium Price Plan Act of 1947." Strike out the title and insert in lieu thereof: “A bill to stimulate exploration, development, and production from domestic mines by private enterprise, and for other purposes." EXPLANATION OF THE BILL The Committee on Public Lands has held extensive hearings on H. R. 2455, a bill similar to H. R. 1602, favorably reporting the same (Rept. 311 to accompany H. R. 2455) and recommending its enactment. It now seems to the committee that for reasons of expediency it is desirable to recommend the passage of a simpler measure at this time and that studies be made during the life of this act to determine if more comprehensive legislation over a longer period of time is desirable. The basis of the present bill is identical with H. R. 2455 and the hearings on that measure covered the present substance of this bill. The scope of H. R. 1602 as now amended merely is restricted. The discussion in Report No. 311 largely holds for the presently amended bill. The committee has reduced the life of the act from 5 to 2 years. It has been pointed out that less than 2 years would not be a fair test period for the operation of the premium-price plan during peacetime conditions. The strategics other than copper, lead, and zinc have been eliminated for reasons of economy. No new division or directorship is created under the amended bill and the administration of the premium-price plan is left in the Commerce Department where it now is. The Director of the Premium Price Plan, under the Secretary of Commerce, will be in sole charge of the administration of the plan and control by reviewing officers is eliminated. The war agencies of which these reviewing officers formerly were a part of now being liquidated. The ceiling on RFC expenditures is lowered to $35,000,000 per year. The committee wishes to repeat the statement made in its Report No. 311 that "encouragement of exploration programs especially is desirable and that those programs already in force should be expanded and extended," and it further feels that the methods now in use under Public Law 548 should be retained, improved, and expanded. The phrase "in the simplest manner" in the opinion of the committee will enable, at the discretion of the Director, the payment of maximum premiums to operators producing copper, lead, or zinc at a rate of only 500 tons of recoverable metal a year or less on an automatic monthly basis, without economic analysis along the lines suggested on page 51 of the text and in exhibit 2 of Senate Small Business Committee subcommittee print No. 6 entitled "Survey of the Nation's Critical and Strategic Minerals and Metals Program." In addition, other administrative simplification is desirable. It is believed the requirement that "payments for any particular metal con tained in an ore" will greatly facilitate the administration of the plan. Under the bill the maximum limits of payment specified in the act may not be changed except in unusual circumstances. As present authority to make premium payments expired at midnight June) 30, 1947, the committee earnestly requests the bill be passed with the greatest: expedition, although it is intended that in becoming law after July 1, 1947, its! provisions will apply to all ores mined during the interim lapse of the authority to make premium payments. EXHIBIT 49 [H. R. 1602, 80th Cong., 1st sess.] IN THE SENATE OF THE UNITED STATES JULY 22 (legislative day, JULY 16), 1947 Read twice and referred to the Committee on Public Lands AN ACT To stimulate exploration, development, and production from domestic mines by private enterprise, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it is the policy of the Congress that every effort be made to stimulate the exploration, development, mining, an production of certain metals and minerals by private enterprise to supply the industrial, military, and naval needs of the United States by providing for the development and conservation of those materials in order to decrease and prevent, wherever possible, a dangerous and costly dependence of the United States upon foreign nations for supplies of such materials. SEC. 2. (a) That the premium price plan for copper, lead, and zine is hereby extended for a term of two years from June 30, 1947, in accordance with the provisions of this Act. (b) Notwithstanding any other provision of law, the Reconstruction Finance Corporation is authorized and directed to make subsidy payments for the fiscal years ending June 30, 1948, and June 30, 1949, with respect to copper, lead. manganese, and zinc, in the form of premium payments not to exceed in the aggregate $70,000,000 and not to exceed $35,603,000 in the fiscal year ending June 30, 1948: Provided, That (A) such premiums shall be paid on ores mined or removed from mine dumps or tailing piles subsequent to June 30, 1947, and before July 1, 1949, though shipped and/or processed and marketed subsequently thereto: Provided, That with respect to manganese ore (1) no payment shall be made to a producer when the base market price plus such payment would exceed $1 per unit (twenty-two and four-tenths pounds) of contained metallic manganese, (2) payments shall be made only on marketable ores or concentrates containing in excess of 35 per centum metallic manganese; that (B) the premium price plan for copper, lead, and zine shall be extended until June 30, 1949, and (i) adjustments shall be made to encourage exploration and development work. (ii) premium payments for any particular metal contained in an ore shall be in addition to the amount received per unit by the producer of the metal, but no payment shall be made to a producer when the market price plus such payment would exceed the limits of the plan in effect June 30, 1947, which maximum limits shall not be reduced unless necessary in order to make individual adjust ments of income to specific mines, and may be exceeded only when the Director shall determine special consideration is necessary for the stimulation of exploration of particular projects. SEC. 3. The Secretary of Commerce may select, employ, and fix the compensation of such engineers and other experts as may be necessary to carry out the purposes of this Act without regard to the civil-service laws and the Classification Act of 1923. SFC. 4. To the end that the provisions of this Act be carried out in the simplest manner, the Director of the Office of Premium Price Plan, with the approval of the Secretary of Commerce, shall prescribe rules and regulations governing, the operation of the premium price plan, except with respect to the methods of disbursement of premium payments. All such rules and regulations shall be published in the Federal Register. SEC. 5. There is hereby authorized to be appropriated sums sufficient to carry out the provisions of this Act. SEC. 6. This Act shall be known as the "Premium Price Plan Act of 1947." JOHN ANDREWS, Clerk. [SUBCOMMITTEE NOTE.-This bill, as amended from the floor of the House to include manganese, was passed by the Senate without amendment and submitted to the President. The President vetoed the bill by withholding approval after Congress adjourned.] EXHIBIT 50 [S. Rept. No. 709, 80th Cong., 1st sess., Calendar No. 746] STIMULATING EXPLORATION, DEVELOPMENT, AND PRODUCTION FROM DOMESTIC MINES BY PRIVATE ENTERPRISE JULY 23 (legislative day, JULY 16), 1947.—Ordered to be printed Mr. MILLIKIN, from the Committee on Public Lands, submitted the following REPORT [To accompany H. R. 1602] The Senate Committee on Public Lands, to whom was referred the bill (H. R. 1602) to stimulate exploration, development, and production from domestic mines by private enterprise, and for other purposes, having considered the same, report favorably thereon without amendment and with the recommendation that the bill do pass. By amendment offered from the floor of the House and adopted, the bill extends the premium price plan to manganese. Comformably to the language of the bill respecting manganese, the Senate committee adopted the explanation of the bill as carried in the report of the House Committee on Public Lands, which is hereinbelow set forth in full and made a part of this report. "The Committee on Public Lands has held extensive hearings on H. R. 2455, a bill similar to H. R. 1602, favorably reporting the same (Rept. 311 to accompany H. R. 2455) and recommending its enactment. It now seems to the committee that for reasons of expediency it is desirable to recommend the passage of a simpler measure at this time and that studies be made during the life of this act to determine if more comprehensive legislation over a longer period of time is desirable. "The basis of the present bill is identical with H. R. 2455 and the hearings on that measure covered the present substance of this bill. The scope of H. R. 1602 as now amended merely is restricted. The discussion in Report No. 311 largely holds for the presently amended bill. "The committee has reduced the life of the act from 5 to 2 years. It has been pointed out that less than 2 years would not be a fair test period for the operation of the premium-price plan during peacetime conditions. "The strategics other than copper, lead, and zinc have been eliminated for reasons of economy. |