Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-03-05
Senate Report Blasts
Gouging Of U. 5. on
Its Tin Purchases
BY the Associated Press

BY the Associated Press
Rapping what 1t called gouging
of United States taxpayers by tin
mine owners and SPECTATORS, a
Senate subcommittee has urged
the Government to stop buying tin
for its stockpile.
An Armed Services preparedness
subcommittee headed by Senator
Lyndon Johnson, Democrat, of
Texas. said in a report to the Sen
ate yesterday the price of tin has
scared more than $50 per cent
since the start of the Korean war.
THE American taxpayer is
weary of being gouged for the
privilege of obtaining from some
OF our nations allies the raw ma
terials with which he is expected
to supply the food and armament
needs of the non-Communist ma
lions in the event of another all
out war" the group said.
Control of most important tin
reserves. the report said, is in the
hands of a relatively few British
Dutch. Belgian and Bolivian cor
porations.
Cost Up Hundreds of Millions.
1t declared the cost of reaching
the national stockpile goal at the
present price will be hundreds of
millions of dollars more than at
pre-Korea prices.
The subcommittee contended
that the tin producers appear
more concerned about the pros
pect of future unstable tin sur
pluses than with the specter of
Communist aggression.
In 1850, in the face of our in
creased stockpile purchases. they
still turned out less than 10 per
cent as much tin as they had
mined in 1941," the report said.
LAS a result the price we have
had to pay not only for the stock
pile but for defense production
and civilian needs has scared to
record heights-more than two
and-a-half times what 1t was be-
fore Korea.
Spectators Also Active.
And SPECTATORS throughout the
world are pushing the price to
even still higher levels in reliance
upon continuing high United
States stockpile demands and con-
ttnued inadequate production"
The group urged the State De-
partment to call a conferene Of the
principal tin producing and con-
Stunning nations to seek an agree
ment on steps to increase produc-
ton. allocate the supply among
non-C Communist countries, and re-
duce the price.
Government officials. who pre-
ferred not to be quoted by name
told reporter that United States
representatives are not sounding
out other governments on the
possibility of some international
action concerning the tin situa-
ton.
Proposing that the tin markets
In Singapore, London and New
York be closed, the Senate SUBJ
committee said stable prices
should be negotiated among gov
ernments at reasonable levels
The subcommittee also recon-
mended that all buying of tin
from abroad for use both by in
dustry and the Government
should be done hereafter by q
single Government agency.
Officials told a reporter that the
Reconstruction Finance Corp. will
be made exclusive American buyer
of foreign tin, both for industry
and Government. They noted a
similar policy already has been
adopted regarding purchases Of
natural rubber, and that lower
rubber prices have resulted.
In addition to urging suspension
Of stockpile purchases until "rea-
sonable' prices are fixed by inter-
national agreement, the groups
recommendations included:
/. The State Department should
offer to cooperate with Bolivia
in making a detailed engineering
survey of Bolivian tin mines. If
these surveys show there is a
reasonable chance of improving
Bolivian output, funds should be
advanced to permit such improve
ments, with repayment to be made
in increased tin deliveries to the
stockpile.
2. The State Department should
urge other governments to set UP
inventory controls similar to those
now in effect in the United States
to prevent the boarding Of stocks
for speculative purposes.
8. 1t should propose to the
other large consuming nations
that they restrict non-essential
uses of tin.
4. Due to higher mining costs
in Bolivia. prices for tin originat-
ing in Malaga and Indonesia
should be rightly expected to be
lower than for tin from Bolivia
S. The State Department should
recommend that governments of
tin-producing countries take spe-
ciflc steps to promote increased
production
6. The United States should offer
assistance to the Indonesia11 gov
eminent in making an engineer
ing study to determine the reasons
for recent production declines.