406 CONFERENCE ON NATURAL BEAUTY 



the faster movement of old cars to scrap processors. I refer to my own 

 industry. Third, the need for research to promote use of automobile 

 scrap. Fourth, the provision of loan funds to speed installation 

 of modern equipment and adaption of new techniques; and, fifth, 

 the elimination of restrictive influences on the quick movement of old 

 cars to scrap yards and to the steel mills. 



President Johnson in his message on natural beauty said, "Eco- 

 nomic incentives may be needed to bring a solution to the junk car 

 problem." 



We agree. This is our suggestion for the steel industry. Use the 

 tax structure now existing. Give mills and foundries an opportunity 

 to write off a greater proportion of the cost of using automobile 

 scrap. For example, if a steel mill buys prepared auto scrap for $25 

 a ton, it could be allowed to write off as a cost of raw material the $25 

 plus another $5 or $ 1 0. This could be applied as a credit before taxes. 

 It would be granted only if auto scrap consumption at the mill ex- 

 ceeded that of the selected base year. 



We have talked with Lukens Steel, one of the major steel com- 

 panies and, incidentally, an integrated mill, about this approach. 

 They told us unofficially, if such an incentive program was offered, it 

 would encourage them to consider how they could increase the use of 

 auto scrap. 



Ugly, unlovely, old cars are a resource and should not be wasted. 

 No sound economy can be built, no nation can flourish if it wastes 

 its resources. The ultimate and real solution to this problem lies in 

 getting old cars back into the scrap cycle faster and in larger quanti- 

 ties than ever before. 



Mr. OWENS. The eyesore problems connected with junk auto- 

 mobiles, in our opinion, have so many facets that no single approach 

 will provide the final solution. The search for the answer thus 

 requires the concerted efforts, not only of the auto wrecking industry, 

 but also government working with the groups involved. 



It is on these joint efforts that I would particularly like to concen- 

 trate my remarks. 



From a public policy standpoint, we start with the premise that the 

 conservation of natural resources is a desirable end. Economic 

 solutions are preferable to those which are wasteful or costly, even 

 though the latter may provide an easy, quick answer. The dumping 

 of cars into the ocean or the burying of compressed car scrap are 



