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Show Joker in Silver Decree May Curtail Mines in Utah MINT DELIVERY DATE TO CAUSE SMELTER JAM Gold Act Link Viewed as Move to Return Issue to Congress Possible immediate curtailment curtail-ment of some silver mining operations in Utah was seen Tuesday by leaders in the mining min-ing industry as result of the provision in President Franklin D. Roosevelt's Saturday proclamation procla-mation requiring that silver be delivered to the government mints by June 30. The hardship, It was pointed out, would bs wrought on the Industry through glutting of smelters and refineries, re-fineries, the uncertainty resulting from the effect of the proclamation as it now standi expiring June 10. Seen As Mokei What mining and smelting men " looked upon as a "joker" In the proclamation was the fact that the president tied Into his proclamation the gold reserve act. which expiree June 30. thua necessitating an act of congreas to extend it. Some leaders saw in this an attempt at-tempt to throw the responsibility of the silver-purchase price Into the lap of congress, they contending Vhat the authority contained in the amendment to the agricultural adjustment ad-justment act would have been sufficient suf-ficient to allow the president to make the proclamation effective a full veer. . While most spokesmen for ths In-' In-' dustry appeared to have been taken by surprise by the half-year character char-acter of the proclamation, they appeared ap-peared to be disposed to make an Immediate investigation to learn Just where ths industry stands and what steps can be taken to protect this vital western industry. An sp-peal sp-peal to congress wss seen aa one way out of ths uncertainty. Beea Threat One of those who saw ths threst ef "slmost lmmsdiste curtailment" of operations wss Gloyd M. Wiles, vice president and general manager of the Park City Coneolldated Mining Min-ing company. "We might hsve to curtail produc-I produc-I tlon almost Immediately If some way is not found to get our ore accepted by the smelters." hs told Ths Telegrsm by telephone from ! Perk City. "Ths smelters srs crowded now. I the refineries will be crowded, snd I they are not going to pay us 4.4 1 cents an ounce unless they are sure they will be able to get that price from the mint We are hoping that something can be done to keep the price stable until June, to allow us a breathing apell until something permanent is worked out." F. S. Mulock, general msnsgsr of the JJnited Ststes Smelting, Refining Re-fining snd Mining compsny, said: I "It is svldent that silver csn not h' delivered to the mint the asms dsy thst ths miner delivers the ore 1 to the smelter. However, the situa- tion is not far enough along to knnw what action might bs tsken. "It requires from- six weeks to two months to process and ship sliver, sli-ver, delivered at the mint. Moat o( tha compsnies here refine their (Contlnitt on P.e. Tttn.) I Column On. I EDICT MAY CURB ' MININGJN UTAH (Coetlnaea From Pu Oi ra In the east, delivering It at the Philadelphia mint. Something Definite "It does seem reasonable, however, how-ever, that tha price ahould be on a mine data basis rather than a delivery de-livery basis, as the mine date basis Is something definite. The conditions con-ditions made under the proclamation proclama-tion result In uncertainty that Is a hardship on ths Industry." George W. Snyder, prominent sliver sli-ver mining operator, aaid: "Many leadera in the industry feel that the preeldent has sufficient authority under the amendment to the agricultural adjustment act to proclaim tha price of silver affective affec-tive for a year. They feel that he wants to put tha problem In the lap of congress. "As the proclamation stands now, ft threatens to hava the effect of curtailing silver mining by, say, April IS, owing to the length of time required for processing and shipment. ship-ment. No Stability "It meant that there is no stability to the silver mining induatry with the knowledge that they can operate for, aay, three and one-half montha. Under theee circumstances planning Is difficult. A. G. Maekensle, secretary of the Utah chapter of tha American Mining Min-ing congress, expressed the opinion opin-ion that the situation would be clarified early in this session of confrsas. Is Futile "Obviously, if silver Is not acceptable ac-ceptable at tha mint, tha silver price proclamation is futile. I do not think ths preeldent would make a proclamation that ha knew would not work, and he may ask congress to renew the gold reserve act "Personally, I feel that the president presi-dent had sufficient authority out-aide out-aide the gold reserve act, but he may have wanted to be safe when he alluded to alt three acts the silver purchase, ths amendment to the AAA and tha gold reserve In his proclamation. "It ahould be pointed out that the present stock of silver that coming under the proclamation ef- fectlve In 138 is not concerned with ths new proclamation, that all ailvar mined last year will ba acceptable at tha mint "Tha administration apparently wants extension of the gold reserve act, as Secretary of the Treasury Henry Morgsnthau has requested that it ba extended." James Ivers, vies president and general manager of the Silver King Coalition Minea company, aaid, "I think tha whole thing is going to be up In ths air until ths language of the proclamation Is clarified. 1 "The discussion csnters around whether the language of tha proclamation proc-lamation vitiatee the earlier statement state-ment by the U. S. treaaury department depart-ment that silver mined up to midnight, mid-night, December 31, l3t, would ba accepted. "If the silver has to ba in tha mint by June 30, the stocks on hand at smelters will not be able to get through. Thus I think that ths vagueneas and uncertainty growing out of the proclamation threatena to reault In curtailment of silver production." |