Mr. PETTIS. No questions.

Mr. BURLESON. Thank you very much, sir. Mr. DECAULP. Thank you, Mr. Chairman. (App. A and B referred to follow :)

APPENDIX A-LIST OF MEMBERS OF ANTIFRICTION BEARING MANUFACTURERS ASSOCIATION, 1970

The Abbott Ball Co., West Hartford, Conn.

Aetna Bearing Co., a Textron Division, Chicago, Ill.

American Roller Bearing Co., Pittsburgh, Pa.

The Barden Corp., Danbury, Conn.

Brenco, Inc., Petersburg, Va.

The Fafnir Bearing Co., Division of Textron, New Britain, Conn.

The Federal Bearings Co., Inc., Poughkeepsie, N.Y.

Federal-Mogul Corp., Detroit, Mich.

FMC Corp., Link-Belt Bearing Division, Indianapolis, Ind.

Freeway Washer & Stamping Co., Cleveland, Ohio.

General Bearing Co., West Nyack, N.Y.

Hartford-Universal Co., Division of Virginia Industries, Inc., Rocky Hill,

Conn.

Hoover Ball & Bearing Co., Ann Arbor, Mich.
Industrial Tectonics, Inc., Ann Arbor, Mich.

Keystone Engineering Co., Los Angeles, Calif.
L & S Bearing Co., Oklahoma City, Okla.

Marlin-Rockwell, Division of TRW Inc., Jamestown, N.Y.

McGill Manufacturing Co., Valparaiso, Inc.

Messinger Bearings, Inc., Philadelphia, Pa.

MPB Corp., Keene, N.H.

National Bearings Co., Lancaster, Pa.

New Departure-Hyatt Bearings Division, General Motors Corp., Sandusky, Ohio.

New Hampshire Ball Bearings, Inc., Peterborough, N.H.
Norma FAG Bearings Corp., Stamford, Conn.

Orange Roller Bearing Co., Inc., Orange, N.J.

Pioneer Steel Ball Co., Inc., Unionville, Conn.

Rex Chainbelt, Inc., Bearing Division, Downers Grove, Ill.
Rollway Bearing Co., Inc., Syracuse, N.Y.

SKF Industries, Inc., Philadelphia, Pa.

Smith Bearing Division, Garwood, N.J.

Sterling Commercial Steel Ball Corp., Sterling, Ill.

The Superior Steel Ball Co., New Britain, Conn.

The Timken Roller Bearing Co., Canton, Ohio.

The Torrington Co., Torrington, Conn.

Winsted Precision Ball Corp., Winsted, Conn.

APPENDIX B

PRODUCTION, EXPORTS, IMPORTS, AND DOMESTIC CONSUMPTION OF BALL BEARINGS, BY TYPE AND SIZE, 1969

Note: This tabulation does not include (1) ball bearings from Canada for assembly into automobiles. Total of these (ball and roller bearings) in 1969 was $3,419,678; (2) unground (nonprecision) ball bearings. Totals believed to be small.

Source of data: U.S. production-Department of Commerce, BDSA preliminary data. Exports-Bureau of Census data on value of exports has been used as a base. It has been assumed that exports are subdivided by size in the same ratio as domestic production. Imports-Bureau of Censes data.

Mr. BURLESON. The next witness is Mr. Edward M. Rhodes, special consultant to American Sprocket Chain Manufacturers Association. We are glad to have you, Mr. Rhodes. I see you have brought samples.

STATEMENT OF EDWARD M. RHODES, SPECIAL CONSULTANT, AMERICAN SPROCKET CHAIN MANUFACTURERS ASSOCIATION

Mr. RHODES. I thought you might like to know what a sprocket chain looks like.

Mr. BURLESON. Proceed, Mr. Rhodes. If you wish to file your own statement you may do so.

Mr. RHODES. We ask that our written statement, which we have filed with the committee, be included as a part of the record.

Mr. BURLESON. Without objection, it is so ordered.

Mr. RHODES. In my oral testimony I should like to condense and summarize.

My name is Edward M. Rhodes. I am a founder and past president of the American Sprocket Chain Manufacturers Association. I was active in the sprocket chain business for 26 years with Rex Chain Belt, Inc. At present I am consultant for the association.

The American Sprocket Chain Manufacturers Association is a voluntary nonprofit association. The 12 member companies of ASCMA, and a number are represented in the hearing room today, account for substantially all of the domestic production of sprocket chain. We have chain plants in Connecticut, Illinois, Indiana, Massachusetts, New York, North Carolina, Ohio, Pennsylvania, Tennessee, and Wisconsin.

This statement is limited to the types of sprocket chain known as transmission roller chains, and leaf chains, which are covered by American National Standards Institute Standards B29.1, B29.3, B29.4, B29.5, and B29.8.

These types of chains are known as roller chain. Roller chain built to these specifications range from quarter-inch pitch to chains which can weigh over 60 pounds a foot and have a breaking strength of half a million pounds.

Seven U.S. companies, all members of ASCMA, account for all the roller chain manufactured in the United States. A 15-year history of U.S. production assembled by ASMCA, is given on page 3 of our written statement.

Roller chain manufactured in the United States in 1969 weighed 65 million pounds. totaled $90 million, and employed 4,850 people. These production figures are illustrated on page 5, figure 1, of our written statement.

In units, domestic roller chain has average 63 million pounds annually for the past 5 years. The U.S. production peak was in 1966 at 68 million pounds, and has been below this ever since even though the economy has grown in this period. But imports of roller chain, shown on page 4 of our written statement, in tabular form, have grown rapidly throughout this whole period. In the last 14 years domestic production has grown less than 50 percent, from 44 million pounds in 1955 to 65 million pounds in 1969. But in these same 14 years, imports

have grown from one and a half million to 22 million pounds, a 1,360percent increase.

Now, where is all this roller chain used? You probably first saw a roller chain on a bicycle where it is used to transmit power from the pedals to the rear wheel. Later on you may have seen chain in a bottling plant or dairy or on a power shovel or lift truck. Roller chains are used as an essential component part of a multitude of machines, from photographic, radio, and office equipment to agricultural combines for harvesting wheat or corn and for picking cotton, to huge slings for handling hundred-ton forgings.

Typical military uses for roller chain include aircraft, both combat and cargo, military trucks, tanks, all sorts of naval craft, amphibious vehicles, missile launchers, military construction equipment and supply depots. All these require chain.

To feed troops we need food processing and packaging equipment and water purification machinery. To clothe them, cotton gins, spinning mills, looms and sewing machines. And to house them, construction equipment of all kinds. Saw mills and woodworking machinery are required. In hospitals, elevators and even X-ray equipment use roller chain.

To transport men we need trucks, automobiles, locomotives, commercial aircraft. To move material, lift trucks and hoists. All these use roller chain.

And to build military and strategic equipment takes roller chain for machine tools, for industrial furnaces and ovens, industrial machinery, automatic assemblying machines, material handling equipment.

To provide and transport raw materials and fuels, coal mining and processing, ore mining machinery. Steel mills, oilfield drilling, cement mills, all depend on roller chain.

So to maintain U.S. productive facilities replacement chains are essential.

The largest market category for roller chain is agricultural implements. Chain drives and conveyors are used on machines for seeding, fertilizing, mowing, harvesting, handling, conveying and elevating almost every farm crop-grains, fruits, and vegetables.

Our human foods as well as feed for cattle and poultry are again handled after harvesting on chains or chain driven machinery when they are prepared and packaged.

Another large market for chain is construction equipment. Power cranes, shovels, ditch diggers, concrete mixers, gravel plants all use chain.

Road building machinery, from earth moving to final paving, depends on chain conveyors and chain drives.

But the replacement market is the largest of all. Chain drives can be selected to outlast the equipment on which they operate, but many applications of roller chain are made on a "limited life" basis to save space, weight, and original cost. On these limited lift applications, which include construction, agricultural, and most mobile equipment, the chains must be replaced from time to time during the life of the machine, just as new tires and batteries must be installed in an automobile occasionally.

Roller chain is essential to the U.S. economy. In all these machines roller chains are the tendons that connect the muscles, the power source, with the fingers that grasp and twist and lift and carry and turn and position. Roller chains wear out and must be replaced if the equipment is to function.

In an emergency we must continue to have the ability here at home to produce chain and to design and build chainmaking machinery. This capability cannot be created overnight. For example, it takes 4 to 6 years experience after college to train a designer of chain machinery. We think it is essential that the United States maintain a strong chain manufacturing capacity. Roller chains are indispensable in our economy.

Now we in the industry have seen what happened to bicycle chain. In 1948 U.S. manufacturers produced over 14 miles of bicycle chain every working day for the domestic market. But imports, first from Europe and then from Asia, damaged this domestic production so much so that 10 years later, in 1958, U.S. production went from over 14 miles a day to about half a mile a day. Today, U.S. production of chains for bicycles is practically zero. All but one manufacturer has abandoned this item completely. The special machinery to produce chains for bicycles has been junked or dismantled.

It is too late to do anything about bicycle chain, but we can profit from our bicycle chain experience because today we see the same import trends in the whole industry that we saw 20 years ago in bicycle chain. The growth of imported chain as a percent of the total U.S. chain market-that is, U.S. production plus imports-is given on page 3748 and illustrated on page 3749 of our written statement.

In 1955 imported chain amounted to only 3.3 percent of domestic consumption. Last year in 1969 imported chain was over 25 percent of U.S. usage of roller chain, more than 712 times the 1955 percentage. This means for every 3 pounds of chain that we made here in the United States we imported 1 pound.

If this trend continues, if imports continue to take over more and more of our domestic market, U.S. plants will not be able to support our needs in an emergency.

We need chains not only for essential military and strategic equipment but for feeding and housing our civilian population and our military forces.

In our business we have a saying that you need chains wherever wheels turn. We won't be able to meet these needs domestically if the entire chain industry continues this way and goes the way of bicycle chain.

Our statement is intended to furnish the committee with current and accurate information as to the impact of imports on one small but vital segment of American industry. It is not intended to present a legal or political analysis of all the various trade proposals pending before the committee. But we want to state our general position as to three of those proposals:

First, we strongly endorse the proposal advanced by both the administration and Chairman Mills to liberalize the escape clause and to make relief against injury caused by imports more readily available. We think relief should be available when an industry can show that imports have played a substantial role in causing or threatening injury.

Second, we urge that serious consideration be given to the enactment of omnibus quota legislation. It may be that some form of potentially available, across-the-board, quantitative restrictions on imports is the only practical way to stave off the further injury that threatens not only chain manufacturers but many other producers of important industrial products.

Third, and less controversial, we favor amendment of the AntiDumping Act of 1921 to make relief against dumping more practically available. It appears likely that many foreign chain sales in the United States are at prices below those in the home market. To provide a realistic procedure for obtaining relief in the event that further studies confirm our assumptions, we urge enactment of legislation which would eliminate significant weaknesses in the 1921 statute.

We appreciate the opportunity to present this testimony, Mr. Chairman.

(Mr. Rhodes' prepared statement follows:)

STATEMENT OF EDWARD M. RHODES, SPECIAL CONSULTANT, AMERICAN SPROCKET CHAIN MANUFACTURERS ASSOCIATION

I. This statement is presented by the American Sprocket Chain Manufacturers Association (hereinafter referred to as ASCMA). The ASCMA is a voluntary nonprofit trade association comprised of U.S. firms and corporations engaged in the design, manufacture, and sale of sprocket chains for the mechanical transmission of power and for conveying and elevating. The 12 member companies of ASCMA account for substantially all of the domestic production of sprocket chain, and have chain plants in Connecticut, Illinois, Indiana, Massachusetts, New York, North Carolina, Ohio, Pennsylvania, Tennessee, and Wisconsin. ASCMA speaks on behalf of the industry in matters of general concern, such as the establishment of standards for chains and sprockets.

II. Description of roller chain: This statement is limited to the types of sprocket chain known as transmission roller chains (and leaf chains) as covered by American National Standards Institute Standards B29.1, B29.3. B29.4. B29.5. and B29.8. These types of chains are known in the trade as "roller chain" and will be referred to as such hereinafter.

Seven U.S. companies, all members of ASCMA, account for all the roller chain manufactured in the United States.

Statistics on domestic production of roller chain are assembled by ASCMA and represent all or substantially all of the roller chain produced in the United States of America.