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Show f V IUV LAU VALU1 SMELTS rucis (pn m. IN IILVEK LEAD. pr corns in IAN NAN ) Ipn UNO lp IN) VOL. 1 8. NO. 49. . HJIU GOLD tUii LJJ& Ol'l'y HVta mUmA) NAN Features Mining, Oil, Financial One Year $2.50 Salt Lake'City, Utah December 5, 1947 . Salt Lake Mining Stocks Post Heavy Trading During 1947 Looking Ahead By GEORGE S. BENSON President Harding College Searcy, Arkansas An Echo Testifies President Truman recently suggested, that price controls might have to be used to meet he present emergency. Here is a bit of history. It is an echo rom government-manage- d economy that keeps on testifying to he ill effects of government-manage- d economy. the war the government During prices kept of crude oil at an abnormal low. This column called attention to that fact then, indicating there would be a future shortage of oil. operators and small companies find most of the new pools and sell much of the crude oil. But prices during the war from buying kept, wild-catte- rs adequate equipment It didnt pay. Machinery and wages kept going up, but the price of oil was held low. Instead of buying new rigs for new wells, oil men removed old rigs from low producing wells that would have been kept in production if the price of oil had been favorable. IIow to Stall Industry There was less searching for new fields, because oil prices were set out of line with cost of labor and machinery. The risk was too often a losing proposition. This unwise control continued so long that a grave shortage developed in oil field equipment, in oil well pipe lines, and even in refineries. Now we are reaping the harvest. Many will go cold this winter. Gasoline may be short in some areas, and industrial fuel scarce. One big operator said to me during that period: To help win a war I am operating present equipment at full capacity. But I am making only about 1 of 1 per cent profit on my investment Consequently, I am not spending new money for expansion of my business. A man cant risk his capital when there is of 1 per only a chance of cent profit even if the venture proves entirely successful, and 100 per cent loss if it fails, as many of them do in the oil Wild-c- at . Lead Demand Continues At High Level Operators to Meet With Standard Oil to Build Refinery at Salt Lake Consumers continued to ask for more lead for December than producers were able to supply, with result that the market ended the week with the metal in a tight position, says a recent Engineering and Mining Journals market report. However, producers appeared to be content with stabilizing the price structure at the prevailing quotations of 15 cents New York and 14.80 cents St Louis. At present the tone of the market is strong. Sales for the week amounted to 14,643 tons. The U. S. Commercial Co. disposed of 881 tons of lead alloy scrap brought here from Japan. The average price realized on the lead-ti- n antimony alloy was 16.011 cents a pound f.o.b. Staten Island. Common lead of foreign origin was unchanged last week at 14.25 cents f.a.s. Gulf ports. Demand for prime western and special high grade was fairly active last week. The undertone was firm, with the domestic market unchanged on the basis of 10.50 cents East St. Louis. Foreign metal again brought 10.125 f.a.s. Gulf ports. The October statistics of the American Zinc Institute placed production at 71,745 tons of slab zinc against 67,867 tons (revised) in September. Stocks at the end of October amounted to 138,568 tons against 136,574 tons a month previous. The statistics now reveal that a total of 63,411. tons of zinc was transferred to government account in months of August and September. In inthat dustry circles it was felt will go metal eventually this into the stockpile. As a result of this move, stocks on hand were reduced from 183,718 tons at the end of July to 136,574 tons at the end of September. . - Also, there is a distinct difference between an absorption plant and a cocktail bar. . . Evidence of a rapidly expanding oil industry in Utah and was apparent this week with announcement surrounding-state- s by Standard Oil Company of California of' plans to build a new five million dollar refinery at Salt Lake. Construction of the refinery followed a decision to construct a new $5,000,000 oil pipeline from the Rangely oil field in Colorado to Salt Lake. The two projects will have a total cost of about $10,000,000. Daily Capacity F. C. .Eastman, district manager for Standard, said the reThere is every reason to anof finery. unit would consist further increases in the ticipate crude oil distillation and facili- price of crude oil. ties for handling and processing That is a conclusion bound to 25,000 barrels, of crude oil per be reached by those who review day. Products will include gas- the facts contained in a recent as oils oline heating and fuel comprehensive study by the well as a limited number of other American Petroleum Institute. items. The study does not deal with The construction program is designed so that the refinery fa- prices or prospects of price incilities in all probability will be creases, but it does summarize available when the new Range- graphically the present condition hard-pressof the industry ly pipeline is ready tothedeliver Coloto supply the greatest demand its first crude oil from in history. rado field. A summarization of the study Pipeline is as follows: The Company reported that Demand for oil products is surveys of the pipeline are pracnow greater .than it was. in any tically complete and that full-sca- le year during the war when miliconstruction will begin in needs were tremendous. the spring or when pipe is avail- tary Gains Refining able. United The States oil industry Mr. Eastman said no site for refining more than the new Salt Lake refinery op- is now' barrels of crude oil per eration had been selected as yet. to the average of compared day were site Negotiations for the wartime the year of 1945 peak reported under way. barrels of 4,711,000 per day, and the Company spokesmen said to the prewar average of 3,861,-0initial refinery program is only barrels long-ranper day in 1941. the beginning of a The ability of the industry interto serve the program oil production, mountain area as well as the to expand crude fa. transportation and refining Northwest, including Boise, Spo- cilities limited is by quickly kane and Walla Walla. many shortages including steel 'The Grand . Couny Oil Com- and other materials. Temporary shortages of fuel pany, a California concern, has moved in equipment for drilling oils and gasoline may be exan oil test about a mile south- pected in certain localities, parwest of Crescent Junction, Utah. ticularly those in the East Coast st regions, if pubRigging up is now in progress. Aa and lic was built consumption continues at its road to the location week agp by county road crews. present rate. An abnormally cold The test is on the Mountain States (Continued On Page 4) lease. Increase in Crude Oil Price Looms . ed 000 00 . ge Mid-We- Sec Krug leaders of the Representative mineral industries of the nation have . been invited by the. Interior Department to meet with Secretary .of the Interior J. A. Krug, on Friday, December 12, to establish a National Minerals Advisory Council, with a view to advising the Secretary on the policy and program relating to the mineral supply position of the United States. The invitations have been sent to 31 individuals in all th major branches of the mineral industries who have a broad knowledge of the problems involved. The selections were made on both a geographic and commodity basis, so that the Council would be representative of all sections of the country and of both large and small companies in the extractive and processing, phases in the fields of ferrous metals, nonferrous metals, and nonmetallics. The Council is beingtheld to a limited number of individuals, but it is anticipated that the group will subdivide itself into commodity committees to work out specific problems in those fields and to coordinate their efforts with the various related industry committees advising the Munitions Board. In almost identical letters to Council nominees, the Interior Department wrote: As you know, Secretary Krug has been planning to oran industry advisory ganize committee to assist him on the mineral problems which face the Interior Department and the nation. The problems in this field have become pressing, and he desires to be competently advised in his actions in this regard. Furthermore, the Department has extensive programs in the mineral field which should, perhaps, be extended, but certainly improved. ! . . - - Sad Picture Now On November 12 Oscar L. of InChapman, Under-secreta- ry Petold the American terior, troleum Institute in Chicago: We face critical times, critical for all of us, and for the competitive freedom of the petroleum industry. This winter for the first time in its peacetime history, the oil industry will be unable to meet the full needs of the American people. Is there any chance tor a young man to start at the bottom and work up in this busi- . ness? Not much. contractors." Were drilling . It Isnt so much what a woman says that hurts; its the num- ber of times she says it. Metal Mining Industry ol Utah IT" I |