Show Utah Ufah Mine Man Cites Need of Copper opper Tariff By Robert W. W Bernick Some persons in Utah are directly employed in ir the mining smelting smelting- or milling milling- of nonferrous metal ores By far the majority are engaged engaged en en- in processing of copper dug from the great open pit at Bing Bing- ham Editors Editor's note This is the first of a series of articles summarizing summarizing summarizing izing opinion of leaders in the mining industry in Utah on ef effect effect ef ef- feet of tariff regulations on the economy of the intermountain area It is to these people that Otto Herres vice president of Combined Metals Reduction Co and veteran of many a tar tariff f battle in Washington Washington Wash Wash- ington issued a warning Monday Failure to impose the 2 cents a pound import tax on copper by June 30 can mean loss of wages loss of jobs and loss of markets in the United States for the domestic domestic domestic do do- copper industry he said Mr Herres believes belie there is siu suf sufficient suf evidence now for prediction prediction prediction tion that the six-day six work week in western pits will vill shortly be a athing athing athing thing of the past past partially partially as a a. aSee aSee See Page 7 Column 1 ie Man Cites bites Need of Copper Tax Tex One from Page I e f resent t flow of cope cop- cop present presen te e states fromy from United y e 4 maid that this work t fold uld result in a 23 I home pay for fords I Ids home i n in ds y C maIms employ employed cd industry copper leS le s 1 Ret Kc UC t s l inor toP toof in to inoC a decline d by fed P it would I or of oC copper opper for railroads Revenues re 1 on tax tov Mr Herres I j food originally placed t ic as c cop as P r in ore blister I matte e and nd scrap in tf 3 1932 at 1932 at the rate of 4 cents a I pound I It became inoperative during the war with the government virtually vir vir- the sole purchaser of copper opper II The tax was suspended effective April 30 30 1947 1917 by congress And effective Jan 1 1948 the stale stoic department negotiated a tariff treaty reducing it one-half one under the reciprocal trade agreement law The reduced tax did not take effect however because congress had passed the present suspension suspension suspension sion law Jaw and copper continued flowing in freely from dollar- dollar hungry countries in competition with domestic pm production I The suspension law of 1947 was scheduled to expire on March 31 31 of last y year ar Despite objections of some in the domestic copper mining mining- industry the law was extended extended ex ex- tended 15 months to June 30 1950 Right after this second suspension suspension sion Mr Herres notes the copper market in the United States went went into a deep slump Prices fell to toa a new low independent mines closed and the six-day six week was was was' cut to five by larger companies These same large firms commenced commenced commenced com com- stockpiling of blister and refined copper they could not sell Slump In copper accompanied a general g leveling off of business activity in the country Mr Herres noted nOlea Leveling Lc Off Such a leveling off period will again be before the country in the not too distant future he predicted And on the basis of 1949 1919 figures fig of the U. U S. S Bureau of Mines foreign foreign for for- eign n production of copper is now noty exceeding foreign demand by tons a year As the minerals yearbook for 1948 1943 19 5 puts it of the excise excise ex ex- cise ta tax on copper imported into the country virtually no foreign metal was consumed in the United States prior to the war the imported imported imported im im- im- im ported copper being treated under bond and thus not subject to payment payment pay py ment of the tax 25 Increase The yearbook noted that during h the war the tax was ineffective and immediate result of or its suspension suspension suspension sus sus- pension in 1947 was a Ii 25 increase Increase in In- crease in imports of copper and more important a 67 hike luke in refined copper imports imports im im- im ports for 1948 Unlike flow under the prewar bonding system this c cop copper o p p per e r mostly went to American consumers consumers consumers con con- sumers in competition with primary primary primary mary domestic production During 1919 1949 it is estimated imports imports im urn- ports increased 5 over 1948 The argument about the import tax also is before congress again gain Mr Herres Berres explained Fabricators in the east want cheaper copper Advocates Ad of reciprocal tariffs on products of the United States cite cile the plight of hungry dollar i I foreign countries who only have jone one market marl market et America I But the mining executive makes these thes points I I 1 The domestic industry y already I I has lost part of its American marI market market mar mar- marI ket to foreign competition I I 2 American copper producers are aie ar capable of or satisfying all hll of the normal native demand demand but but it will come at a I higher gher price because better belter wages are paid here and transportation costs are aie higher 3 of or the tax does I not mean complete loss Joss of Ameri meri- American merican can marJ markets els to foreign n producers It does docs act as a brake toward a Sl flood of copper which could start prices tobogganing a again w wit with i t Ii h consequent unemployment and further market loss Same 4 I dont don't believe that any American I has a quarrel with policy of helping other countries back on their feet but those who tho cry that these countries have no other othel place to sell but to America must remember th the west is in the same position We Ve have no other place to sell I either but to the cast And we buy eastern manufactured goods g with the money we get bet from our raw materials He says when the choice comes I down between the American breadwinner breadwinner bread bread- winner winner- and aid through lower tariffs tariffs tariffs tar tar- iffs to foreign countries we should t take ke care caie of or our own f first |