Evening star., 1949-04-20
House Unit Backs Bill
To Reimburse Mines
For Sfockpile Losses
E Chris Mothisen

A piece Of legislation intended
primarily TO relieve certain dis
tressed mine operators Of the
World War II period could have
an important bearing on the Ma
tion's strategic material supply
situation in the event Of q new
emergency.
This is the opinion Of the House
Judiciary Committee.
The bill involved has been ap-
proved by the committee and now
Is awaiting action in the House.
It was introduced by Representa-
tive Engle, Democrat, of Califor-
mia.
It's title describes it as q meas
ure ito amend the Contract Set
tlement Act of 1914 so as to
authorize the payment Of fair
compensation to persons contract
ing to deliver certain strategic or
critical materials or metals in
failure to recover reasonable
costs"
Cost Not Known.
While recommending passage.
the committee has admitted 1t
does not know how much the leg
islation would cost the Govern
ment In settlement Of claims. 1t
also has acknowledged that the
bill would provide a special sort
of aid to a particular class OF war
contractor. But, the committee
has pointed out, a similar measure
was approved after World War /.
More than 100000 in claims
were paid under 1t.
This situation gave rise to the
present legislative proposal:
Prior to and during the early
stages of the war. the Govern
ment said to mine operators, In ef-
feet:
I'VE are faced with . critical
supply situation in certain stra-
tegic minerals. We need all you
can give us. and we'll make 1t pay
for you to work diggings that
wouldn't return a profit in normal
times. The Bureau Of Mines will
help you find new deposits. The
War Production Board will give
you priorities for additional equip
ment."
Specifications Stiffened.
Then. when the submarine
menace was reduced, the Govern
ment curtailed its domestic pro-
curement program.
In the case of manganese, re-
newed availability of higher grade
foreign ores prompted an upward
revision of the quality specifica-
tions. Operators who had been
mining submarginal deposits were
obliged to abandon them. Small
operators who had been furnishing
manganese of the old minimum
grade could not afford to invest il
the extensive equipment needed
for more exacting refining.
The House committee recognized
that it would be suggested these
unfortunate operators merely sue
cumbed to a normal business risk
and had no basis for expecting
the Government to write a check
for their losses.
On the other hand. the COM
mittee pointed out in its report.
There is no doubt that
most, if not all, of those who would
benefit by this bill were induced
to engage in the activities result
ing in their present losses because
of official representations OF au-
thorized Government agents"
Looks to Future Situation.
The committee contended some
thing more important than paying
for an uncertain amount of loss
suffered during the last war is in
volved:
I'VE further are of the opinion
that to deny relief to these claim
ants would imperil the position of
the Government were another
emergency to arise requiring i'm
mediate supplies of the critical
materials here involved. Niggardly
treatment now of their claims
would undoubtedly persuade them
against re-engaging in the same