Document 6BDg4DJJVKwKXKjbkRMwGBowR

LIA2V762 LEAD INDUSTRIES ASSOCIATION 420 LEXINGTON AVENUE NEW TONIC 17. N. T. October 27, 1947 To Kialng Hsaber* of the Lead Industrie* Attoola.ti.oat SUBJECT t CCMtiUyiCATIO?) F5C3i S2C.TSTASY OF THS INTERIOR Enoloted pie*** find copy of h letter reoeired by the Atto elation dated October 21, 1947, froca the Hoa, J. A. Xrug, Secretary of the Interior, TiaahlASton 25, 5, C., trhioh it * elf-explanatory. Very truly yourt. J / ff-jiwr.trip1- %\<icaitv\..x!iiTir'''|^^^H'-tW|ff^-*||,n*i|'ii!y.-.|>..i| J j i ., O''. TMM">".. r*'ri*"* 'jVT1. *'MI11 LIA21763 ***v <- -, i -------- r f^-fU--yr fljr=-ITr-f -ih.ryi.-~-r.-|.' fi,i.'r-iW--ihrr'--W - ~~v ~^r . ^ - _ -- .-.; r-~. ' -.if,.. >-.,- ' 'r-.y'.- COPT THE SECRETAST OP THE INTERIOR Washington 25, D. C. Ootober 21, 1947 My dear Hr, Zlagfeldi for many month* the ssrloui shortage of iron and. steel sorap ha* boon a feature of tho regular eeoaocoie and statistical report* Issued by the Bureau of Mines, De partment of th* Interior* The Department's special investigation* ncm being made at the President** request to determine what nay be safely and wisely applied 'to carry out th* Marshall Plan, show the iron and *teel sorap supply to be critical. All pos sible touross are being oalled upon to aid in supplying iron and steel rurnaoea with tho present requireaonts of more than two Billion gross tons of purchased scrap per month -- the highest rate in history, Tho present supply, however, is insufficient to permit th* steel industry to produoe steel at the anxious rat*. Consequently, Z am calling on the various mining associations in the United States to use every means poetible to imprest upon the mining ocopanis* the importance of moving promptly any machinery or equipment that constitutes potential sorap into consuming ohannels. Companies shipping eorap at this time will enjoy the highest prioe in history. This present eerap shortage is largely the outgrowth of four faotorst (l) The tremendous quantity of rteel which was sent out of th# United State# during the war in the fora of military equipment with virtually no compensating return of sorap, (2) ex ports of sorap totaling 14,7 million tons during the ixaediate prewar years 1955-59, (5) a general delay in supplying consumer requirements for steel produots whleh by forcing people to use produets longer, has retarded the normal flow of sorap from con sumers baok to steel plants, and (4) th* high rate of steel production tinea 1940. Some exported material exists in European countries in the form of obsolete military equipment and damaged industrial and civilian'construction but this eannot be trans ported to the United States for several month* because of an extreme shortage of transportation equipment in Euro -earn countries, especially Germany. The return of sorap produced by manufacturing companies In the United States it approaching a maxi mum rate and only small increases from this source may be expected in the future. Surplus ships are being aorappod at a rate of about 50,000 gross ton* per month whloh is believed to be a maximum. Dealer# are malting every effort to move sorap obtained frca obsolete mohinery, automobiles, buildings and othor sources and railroads ar# returning sorap at a high rate. It is believed that sorap aoeuaulation* frees faros aid homes have been largely exhausted, although small quantities continue to be oolleoted from these aourees* Th* consuming industries fsos th* most orltieal shortage 1e th* ensuing fall and winter months. Considerable tonnages of sorap are believed to exist in and around nines and quarries in th# United States end I aa appeeling to th# mining industry and its vari ous associations to toSee every posslblo step to aid in maintaining steel production at or above the present noar-oapaoity rat# by sending all available sorap material to market prcsaptly. In view of the impending shortage of ferrous sorap during th* ocmlng winter months, th* Notion would be greatly aided by s suooessful sorap drive from this souroe. An unsuseessful program will result in less steel being available for domestic requlreaent* and foreign ehlpaents. Mr. Robert Zlegfeld, Secretary, >ad industries Association, 420 Lexington Avenue, New TOrk, K. Y, Sincerely yours, // J. A. Krug Secretary of th* Interior* t