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Show Page 2 WESTERN MINERAL SURVEY II rain - KXW8 CIBCULATIOM Street Phone KM Curtia BL, Denver ALplne ADVEHTISIXQ Dl Box 360S 49 Belt Lake City, Utah 2402 Curtia Bt., Denver ALplna Entered ae eecond daaa matter at Salt Lake City, Utah, under Act ol March 3. 1079. Subacrlptlon rates: for one year. 43.00 That Big River Co. To Drill Unearned Raises Cause Inflation Well At U. S. Steel Chairman States Horn-Powd- er 4-Com- 431 Church 3402 Friday, November 23, 1956 THE WESTERN MINERAL SURVEY 5:00 for two yearn; Pleaae mention Wee tern Mineral Survey when writing to advertisers. Adver Using rates on application. L. M. HILL Editor All news appearing in the Western Mineral Survey la obtained from sourer believed to be reliable but no responsibility la assumed for accuracy of atatementa. Reproduction of any material from this publication must have written permission from the publisher. Report Urges Strict Safety Code At Plant Roger M. Blough, chairman of the board of United States Steel Corporation, today called upon Americas free press to assume leadership in attacking inflation, which he described as a common enemy of small business and big business that strike both with equally dev-atatin- g effects. A most important aspect of that undertaking, Mr. Blough said, should be the creation throughout the nation of an awareness that inflation is intensified by unearned wage increases wage increases that are greater than increases in productivity. He defined productivity as encompassing not only output per man-hou- r but also the cost of improved machines and materials for more (efficient production. Mr. Blough urged the attack on inflation in an address to the fall meeting here of the National Editorial Association, which is composed of some 5,400 publishers and editors of newspapers. Asserting that the steel industry, as a principal victim of Inflation, had consistently tried to resist it, Mr. Blough declared that no one union, no one company, and no one industry ca halt inflaan Strict safety measures must be taken at the Vitro Uranium Co. plant, 600 W. 33rd South, Salt Lake City, to prevent any recur- tions march. rence of an accident there Oct. 28 Every hew wage agreement which claimed the life of one is signed in any major industhat man. becomes the floor upon which try This was the gist of a report the next union pyramids its demade by the Utah State Indus- mands for a still higher wage," And we have trial Commission, in which seven he continued. were measures learned that rising steel prices do specific safety not cause inflation listed. they are the result of inflation. .The commission report said that In outlining inflations impact hydrogen sulfide gas was responsion the enterprise of which he is Otis ble for the death of Williams, 45, and the illness of Ray Pearce, the chief executive officer, Mr. plant employes who were over- Blough reported: come by; inhalation of the gas. That in the past 15 years U. S. Recommendations of the report, Steels costs per employee hour prepared by V. G. Pett, state rose at an average annual rate of metal mine inspector, called for almost 9 per cent compounded, control measures to keep the and its employment costs alone by plant free from such gas, presence 8 per cent a year on the same of artificial breathing apparatus, basis, while actual productivity and special Instructions to em- increased by only 2 per cent annuployes regarding the use of pro- ally. This means, he said, that s of every wage intective and rescue equipment. crease that U. S. Steel has voluntarily or under pressure granted over the past 15 years was unMine earned, in the sense that it could not be met out of increased productivity, even if all the benefit of the higher productivity went to three-quarter- Plans Nevada Deep Drilling At Ford Properties U. S. Steels employees. That in the same period Steel prices were increased by only an average annual rate of a little under 5 per cent, and U. S. Steels profit margin dropped from 9 per cent of sales in 1940 to 9 per cent in 1955, the latter figure being only the 26th best in the corporations history, despite Radiore Builds Access Road for New Operations MOAB, Utah, Radiore Explor- ation., Nevada corporation headed by James R. Downing of Moab, launched another uranium development this week. Downing said Radiore Exploration began construction Monday s Nov. 19) of of a mile of new road in the Colorado river canyon southwest of Moab. Vith completion of the road, owning said, two new drifts will ie started. three-quarter- The new program is a joint Win-nemucc- a, Assays on veins that have been cut have been very encouraging. Showing at depth will greatly enlarge the value of the mine. It is understood that the property is now under option. ven-ur- e of Radiore Exploration and Radiore Uranium Corp., a Utah company which Downing also heads. Chief mountain property is owned by Industries ind Mines, Inc. (formerly Nat-ona- l Uranium), of which Martin Lasher of New York City is pres. The 23-clai- Radiore Uranium took an operating lease on the property, already certified for AEC bonus payments, last winter. Downing explained a new agreement has been reached with Industries and Mines, under which Radiore Exploration and Radiore Uranium will join in a revised development plan. Radiore Uranium shipped some from the Chief mountain group last winter, but mining costs from the drift being operated at that time proved too high and work was suspended until engineers could work out a new plan. Downing also announced today that Radiore Exploration has acquired nine claims in the Grays Pasture area, on the Colorado volume river about eight miles below the last years record-settinChief. Arco Uranium, Climax of production. and Union Carbide Nuclear are Inflation, Mr. Blough de- among operating companies with clared, has not only wiped out property in that district. the benefits of all the technologi cal progress which has occurred Radiore Explorations other in our plants and our mills, but holdings include claims in the it has cut our profit margins far Indian Creek area of San Juan below the levels which prevailed Home office of the comin the earlier years of our cor County. pany is 425 Fremont St., Las porate life. Mr. Blough said he wanted to Vegas, Nevada. 15-ye- ar Machinery has arrived in Nev. for a deep drilling on the Ford Properties program mine near Mill City, Nev. tungsten A group, Pedlar and Associates, will put in 12 slanting holes from tunnel level to intersect veins at the 500 foot level. For their work, they have been given an interest in the property. g CO. has changed their name to MOBILE URANIUM & OIL THE Monada Petroleum Corporatipn m Main Offices Billings, Mont. 2123 2nd Ave. No., Phone P. O. Box 124 1 dispel, once and for all, the notions that rising steel prices have contributed importantly to the march of inflation, and that steel prices are lengthened or shortened at the whim of steelmakers. He cited U. S. Steels action in 1948 in rejecting demands for heavy wage increases and reduce ing steel prices by an average of $1.25 a ton, despite the fact that economic controls during World War II had permitted employment costs to rise 46 per cent and wholesale prices generally by 35 per cent, but steel prices only 3 per cent. ' U. S. Steel was forced to rescind that action, Mr. Blough added, because unions in other industries 6-61- 55 demanded and obtained a round of large wage increases and other industries then boosted their prices to pay for the increases. At the opening of steel wage negotiations last summer, an effort was made to achieve a contract with the steelworkers union that would have held increased costs to an average annual increase of about 4 per cent, compared with a 25 per cent increase demanded by the union, Mr. Blough said. The effort, he continued, was widely applauded in editorials; but when the union struck the Steel industry, the editorial tune changed to urgings that the strike be settled, without any suggestions emanating from: the newspapers as to what an equitable settlement should be. (The strike was settled by a three-yea- r agreement entailing an ncrease n U. IS. Steels employment costs that will average 6 per cent a year, exclusive of a five-yea- r, no-stri- ke ers The directors of Big Horn-PowdRiver Corp., H. C. Wadlington, Denver, president, have approved a plan for drilling a well on the companys 12,000 acre block of leases in the Four Corners area. A syndicate has agreed to provide funds for drilling and completing the first well on a drilling block containing 640 acres for 60 per cent working interest in the 640 acres only. The well will be located in the SE SE of Section 15, Town37, North, Range 20 West, ship Montezuma County, Colo. A rig has been moved in the location and completion is expected about the end of November. This location is approximately 10 miles north of the Texas Co.s 34-da- y er No. 1 Navajo-- J well in the east end of the Aneth Field, which flowed 1420 barrels per day, and approximately 18 miles northeast of the Aneth Field, where some twelve or more wells have been elapse.) completed which tested from 600 The steel industry has taken to 1800 barrels per day. cost-of-livi- five nationwide strikes in the past 11 years, primarily in an attempt to hold down the costs of production and to minimize price rises, Mr. Blough declared. And in the end we had to settle those strikes, because our national welfare will not permit a steel strike to go on indefinitely. t attack In calling for an advocatMr. on inflation, Blough ed not only developing a realization of the way unearned wage increases Contribute to inflation, but also an awareness of the urgent need for more realistic de-predation provisions in the tax laws, so that industrial enterprises mayl report as costs those things which are cots, while the government taxes as profits those things which are profits. Zinc Oxide Shipped Shows Increase, Production Declines .all-ou- Moab U-M- ill Scores In Shakedown Rim The largest independent urani- um mill in the United States has passed its initial run satisfactorily, officers of Uranium Reduction Co. at Moab reported Saturday. When the first output of yellow cake (uranium oxide) commilmenced on Oct. 31, the $8 lion facility on the banks of the Colorado River was manned by millmen who had only about three weeks average total experience in operation. Most of these new employes are either residents of Moab or were hired in construction of the milij by Foley Uranium Constructors, an affiliate of Foley Brothers, Inc., world-widengineering and contracting firm. The employes were taken for a two weeks observation to the Atomic Energy Commissions pilot plant at Grand Junction, Colo., and to the Monticello mill which National Lead Co. operates for e AEC. Production of zinc oxide (lead-fre-e and leaded) in the United States during September 1956, was 15,100 tons or 4 percent lower than that reported for August, according to the Bureau of Mines, United States Department of the oxide productInterior. Lead-fre- e ion decreased 7 percent or 900 tons, however, ''the decrease was inpartially offset by a 400-to- n crease in the production of leaded zinc oxide. Producers stock declined for the fifth successive month; inventories totaled 18,100 tons on Sept. 30, the lowest since Sept. 1955. Of the total stock on hand 14,800 tons were lead-fre- e 3,300 tons were the leaded variety. Shipment of all oxide during September increased 3 percent to 16,500 tons. Lead-fre- e zinc oxide shipments increased 400 tons to 13,700 tons while leaded zinc oxide remained the same at 2,800 ton. Free Information, QUOTATIONS. on Unlisted Uranium and Oil Issues Also Reports On Companies Listed and Traded on the Salt Lake Stock Exchange CHICAGO CORPORATION CHAMPLIN REFINING COMPANY P. O. Box 552 ENID, OKLAHOMA m Cromer Brokerage Co. (Incorporated) Suite 3-- 4 39 Exchange Place Salt Lake City, Utah |