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STATEMENT OF ROBERT L. TRESCHER. CHAIRMAN, TRADE DEVELOPMENT COUNCIL
Mr. Treschek. Mr. Chairman and members of the committee, my name is Robert L. Trescher and I am testifying on behalf of the Chamber of Commerce of Greater Philadelphia in support of the extension of the Reciprocal Trade Agreements Act.
I would like to offer in evidence a written statement which expresses the position of the chamber of commerce.
This statement was prepared by Mr. Myles Standish who is the executive director of the trade development council of the Chamber of Commerce of Greater Philadelphia.
I should like to make it plain that I am not testifying as an expert. I am here simply to tell you what the chamber of commerce is, who it represents, and what its position is in this matter of the extension of the Reciprocal Trade Agreements Act.
The Chamber of Commerce of Greater Philadelphia is probably the oldest, in the United States. It was organized about 1800. It now consists of 1,700 members. Those members run the gamut of virtually all commercial interests from banking through candymaking, manufacturing, exporting, importing, food processing, virtually everything you can name.
The Chamber of Commerce of Greater Philadelphia is by no means limited to Philadelphia proper. It embraces part of Delaware, the focal point of which would lie Wilmington.
It embraces the southeastern portion of Pennsylvania, the focal points of which would be Philadelphia and Chester.
It embraces part of southern New Jersey, the focal points of which would be Trenton and Camden.
Now the stake of that area in exports and imports, foreign trade generally, I think can perhaps best, be, highlighted by mentioning justS or 4 points.
First, the port of Philadelphia is second in the Nation in total foreign trade cargo movement and first in import cargo.
Second, over half the cargo moving through the port of Philadelphia is in foreign trade.
Third, the economic life and welfare of the city of Philadelphia and the entire Delaware Valley area is directly connected with the port.
Next, two-thirds of all industrial workers in this area are employed by companies which either buy materials or sell products abroad.
Finally, practically all of our retail merchants, large and small, sell products, either grown or manufactured abroad.
Now, against this backdrop, the chamber of commerce has authorized me to come down and testify that it, representing that large complex of commerce, is heartily in support of the extension of the reciprocal Trade Agreements Act.
Its trade development council, which is 1 of 6 councils that functions within the chamber, has given the act careful consideration and it unanimously adopted a resolution supporting the extension.
Then the board of directors, which is a large organization very representative of all the industries in the port of Philadelphia area, acted upon it and it too, unanimously adopted a resolution favoring the extension.
I think it appropriate to add that the city council of the city of Philadelphia also adopted a resolution urging support for the extension of the Reciprocal Trade Agreements Act.
The only other point. I would like to make is that I am confident that our chamber of commerce, in urging support for the act, is not thinking solely in terms of Philadelphia.
I know that its members feel that it is a good thing for the Nation as a whole.
They do not fear competition. They are strongly confident that our genius, our business genius in this country, can meet foreign competition.
They favor the extension for the 5-year period.
Thank you very much, sir.
Senator Frear. Senator Carlson?
Senator Bennett. I suppose the witness will offer his full statement for the record.
Senator Frear. It will be made a part of the record in full.
Thank you for that very fine statement, although brief.
Mr. Trescher. Thank you.
(The statement in full is as follows: )
Statement Of The Chamber Of Commerce Of Greater Philadelphia Presented By Robert L. Trescher, Chairman, Trade Development Council
Pounded in 1801, the Chamber of Commerce of Greater Philadelphia has over 1,700 industrial, commercial, banking, transportation, and service companies as members. The membership is drawn primarily from the Philadelphia metropolitan area, which is composed of the eight industrial and commercial counties of Bucks, Chester, Delaware, Montgomery, and Philadelphia in Pennsylvania, and of Burlington, Camden, and Gloucester in New Jersey. In addition, several outstanding industrial and commercial companies of New Castle County in Delaware are chamber members.
The decision to support a 5-year liberal extension of the Reciprocal Trade Agreements Act was taken in accord with this chamber's bylaws. The matter was first studied and unanimously adopted by the board of governors of the trade development council of the chamber. This policy and action was then unanimously approved by the board of directors of the entire chamber.
Resolution No. 275, passed on June 5, 1!).">8, by the Council of the City of Philadelphia is attached to this statement to demonstrate that the Chamber of Commerce of Greater Philadelphia is not alone in supporting II. R. 12501. Religions groups, labor, and women's organizations from this area have also voiced their approval of this legislation to their Representatives in Congress.
"resolution No. 275
"RESOLUTION Memorializing the 85th Congress of the United States to enact II. R. I25K1, a bill which would extend the authority of the President to enter into trade agreements under section 350 of the Tariff Act of 1930, as amended, and for other purposes
"Whereas the port of Philadelphia is second in the Nation in total foreignaid cargo movement, and first in import cargo; and
"Whereas over half the cargo moving through the port of Philadelphia Is in foreign trade: and
"Whereas the economic life and welfare of the city of Philadelphia and the entire Delaware Valley area is directly connected with the port; and
"Whereas two-thirds of all industrial workers in this area are employed by companies which either buy materials or sell products abroad; and
"Whereas practically all of our retail merchants, large and small, sell products either grown or manufactured abroad; and
"Whereas the city of Philadelphia is historically and traditionally a leading center for international peace, and that peace is threatened by barriers to international trade, such as high tariffs, import quotas, and similar restrictions: and
"Whereas the national leaders of both of our great political parties have urged all American citizens interested in our national welfare to support the bipartisan reciprocal-trade program, which for almost a quarter century has been the keystone of our foreign-trade policy: Therefore
"Resolved- by the Council of the City of Philadelphia, That we hereby memorialize the Members of the 85th Congress of the United States to enact H. R. 12591, a bill which would extend the authority of the President to enter into trade agreements under section 350 of the Tariff Act of 1930, as amended, and for other purposes, which is now before the House of Representatives for consideration.
"Resolved, That certified copies of this resolution be forwarded to the Speaker of the House of Representatives, the President pro tempore of the Senate, the Members of Congress representing Philadelphia, and the United States Senators representing Pennsylvania.
"This is a true and correct copy of the original resolution passed by the Council of the City of Philadelphia on the 5th day of June 1958.
"james H. J. Tate, "President of City Council. "Attest:
"nathan Woi.fman, "Chief Clerk of the Council."
The port of Philadelphia officially includes the navigable portion of Delaware Ray and River from the Atlantic Ocean to Newbold Island. Along the shores of that waterway are the port facilities of Wilmington and other communities in Delaware; Chester, Philadelphia, Morrisville, and others in Pennsylvania: and Trenton, Camden, and others in New Jersey.
In 1957, just over 100 million tons of cargo moved in and out of this great port, making it second in the Nation in total cargo movement. Approximately one-half of that movement was in foreign trade, with inward cargo making this port the first in the United States for volume of imports. Two hundred and twenty regularly scheduled steamship lines, the largest railroad in the United States, and 2 other major lines, 350 regularly scheduled highway transport lines, and 9 national and international airlines reach out to connect this huge shipping district to all parts of the United States and the world.
In addition to its own immediate area, the port of Philadelphia serves the great steelmaking and industrial complex of western Pennsylvania, eastern Ohio, and northern West Virginia which has Pittsburgh as its capital. The highly industrial Central States and the agricultural Midwest to the Rocky Mountain's also send their products through the port to all parts of the world. For example. the following table shows the volume of grains, coal, and manufactures which moved through the port in export in the postwar years 1946-57 for a grand total of 58,447.558 tons.
'The hulk of these coal exports were Pennsylvania anthracite.
It is natural that around the port of Philadelphia district should grow up many trades, services and industries which are dependent upon foreign trade for their livelihood. With the depletion of Minnesota's Mesabi Range reserves of high-grade iron ores, the American steel industry has been forced to seek out and develop sources of these ores outside the United States. Imports of iron ore represent only 18 percent of our national requirements but most of these imports arrive in this port and are processed in increasing quantities in the district The port handles varied other imports including manganese, chrome, nickel, tin, bauxite, cryolite, fluorspar and gypsum in its extensive and modern discharging facilities. These ores and minerals are vital to our national economy and are either not found in commercial quantities in the United States or, if found, supplies are insufficient to meet demand.
During the first quarter of 1958, approximately 12.5 percent of our national requirements of crude petroleum were imported. Of this total, slightly more than half arrived in the port of Philadelphia for refining in the important concentration of refineries of adjacent Pennsylvania, Delaware and New Jersey. This concentration represents about 9.6 percent of the total national refining capacity and is a consumer of domestic as well as foreign crude.
Ready access to steel fabricating plants, electrical and mechanical machinery producers—and important paint factories—have permitted the shipyards at Wilmington and Camden to build and repair commercial and naval vessels of all sizes. One of the oldest and most important United States naval shipyards is also at Philadelphia. The Camden yards, the largest privately owned in the Nation, are now proudly building the nuclear steamship Savannah—the first atomic-powered cargo vessel which will, along with the electric generating plant now under construction in American factories for domestic as well as foreign buyers, demonstrate that the United States is leading the world in the peaceful use of atomic energy.
The port district Is one of the Nation's principal food processing areas. As the third largest candymaking center in the United States, the Philadelphia area imports large quantities of cocoa, sugar and flavorings. Canned and prepared foods are exported throughout the world. These food processors draw heavily upon fruit, vegetable and poultry farmers of the three adjacent States for their basic primary materials.
While the carpet industry is diversified throughout the Atlantic and Gulf States, the Philadelphia area is perhaps the largest single concentration. Much of the carpet wool (which is not produced iu appreciable quantities in the United States) and jute which must be purchased abroad, enters the country through this port and is processed by carpet factories in the area. The local leather, bagging and twine industries, also of national importance, import and process hides and skins, sisal, henequen and jute which are not found in the United States in the desired commercial quantities.
The Philadelphia area is rapidly becoming the electronic center of the United States. In addition to many products for the American home and homeowner, this industry makes a major contribution to our Nation's modern weaponry through designing and building electronic components and systems for naval vessels, aircraft and guided missiles. For this growing and vital industry, critical raw materials such as mica, tungsten, tin, nickel, chrome and shellac, must be brought from abroad. On the other hand, the foreign trade of these manufacturers is expanding as the standard of living of foreign consumers rises. A similar situation exists for the industrial chemicals and pharmaceutical manufacturers who combine to make the Philadelphia port district a major chemical producing area of the United States.
Professional and scientific instrument and equipment makers, including surgical, medical and dental, make this area one of the most important in this field in the country. Their products are sought by foreign buyers. Of similar skills and with comparable foreign markets are the area's tool and die makers, particularly those serving the American and foreign automotive vehicle producers.
Foreign trade is important as well to the economies of the States of Pennsylvania, Delaware and New Jersey, all of whom have communities, industries and agriculture making up the port of Philadelphia district. The United States i>epartment of Commerce has recently Issued reports on surveys of the impact <k foreign trade upon each of those States; some of the salient points made by those reports are:
Pennsylvania, the survey revealed, has 8 major manufacturing classifications which had a proiwrtionate share in the total United States exports for 1956
27629—«8—pt. 1 45
of $764.7 million. In the 1956-57 marketing year Pennsylvania's agriculture had a proportionate share of $45.5 million.
The specific companies mentioned in the Pennsylvania report as engaged in foreign trade span the industrial spectrum and were from small in size to industrial giants. The communities in which these companies have factories are diffused throughout the Commonwealth of Pennsylvania, from Washington. Pittsburgh and Erie in the west—to Morrisville, Philadelphia and Chester in the east. Pennsylvania, which ranks as the first State in the Nation in the production of metal and mineral products, and second in the total value of manufactured goods, exports its produce throughout the world. In turn, many of those factories are dependent upon foreign sources for raw materials. The State's food processors similarly look abroad for sources of both supply and sales.
Delaware has an important stake in our national foreign trade. While small territorially, it is the home of the world-famous du Pont Co. which, together with the Atlas Powder Co. and the Hercules Powder Co., exports large quantities of various chemical products and cellulose and procures a wide variety of raw materials overseas. The American Brake Shoe Co., the Carrier Corp., and the National Vulcanized Fibre Corp. are also singled out by the United States Department of Commerce report as having important export business. The well-known packing firm of Libby, McNeill & Libby draws on Delaware agriculture, according to the report, to export canned meats, fruits and vegetables, and, in turn imports flavorings and seasonings.
Delaware's proportionate share of the total United States exports in 195»i was $27.9 million of which 5 industrial groups exported an estimated $25.1 million.
On the subject of agriculture, the report shows exports broken down into the following groups (State's proportionate share of United States exports):
Poultry products $1,158, 000
Dairy products 486, 000
Fruits and nuts 195, 000
Livestock products 1C9, 000
New Jersey has 8 principal industrial groups which had a proportionate share in United States exports for 1956 of $573.7 million. Its agriculture in the 1956-57 marketing year had a proportionate share in excess of $14.9 million. The highly diversified, widespread industry of this State exported electrical machinery, communications equipment and a wide variety of electrical equipment and consumer products. New Jersey's important industrial chemical and pharmaceutical industries draw upon foreign sources of supply for raw materials and export their products throughout the world. The world-famous food processors in the Garden State export appreciable quantities of their products and, in turn, are dependent on overseas sources for varied ingredients.
This chamber of commerce believes that the above evidence points clearly to the direct interest of the port of Philadelphia district, and of the 3 States of Pennsylvania, Delaware and New Jersey, in a continuing reciprocal trade program as contained in II. R. 12591. The bill provides adequate protection for those industries which are vital to the national security.
The chamber is conscious of an obligation by the Nation to those workers and companies whose employment and business is hurt by foreign products allowed into the United States as part of the overall national foreign economic and trade policy. To fulfill that obligation, the chamber urges the Congress to give full and early consideration to S. 2907, H. R. 9505 and other pertinent legislation so that temporary relief of an investment nature may be justly accorded to those hurt in the national interest.
On the matter of foreign competition, the chamber believes the American industry on the whole is more than qualified to meet foreign competitors on price and quality. Such competition will, in the long run, prove no different than normal competition within and between domestic industries. Further, such competition can be expected to sharpen the technical and managerial skills, cost consciousness and general efficiency of American manufacturers.
The chamber opposes high tariffs and import quotas because they do more harm to the majority of American exporters (merchants or manufacturers) than they afford seeming benefits to the handful of American manufacturers they would protect. Further, reasonably lowered tariffs enable the countries to