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Show I -i status I . of in smelter K JRojla E. Clapp Reviews the Sit- H uation and Prospects for M - k Plant in Iron County. Q BEL-IEVES ALL WELL H ., j ..BUT MUST HAVE TIME. 'I Letter to Don C. Kobbins Explaining Hil Situation Forwarded to Record 1 ii ".for Publication to Headers. II .-. V ,v.v',:f H.T The following letter from Rolla E. HI Clapp, consulting engineer for the Hf Southwestern Pacific Rnilroad Com- H(f pany, to Mr. Don. C. Robbing, who 1b Kj associated with Mr. Clapp in his pro- jects, is self-explanatory. It wus ' sent to The Record by Mr. Robbins Hi wjlh the request that we make room 1 fcjr it in our) publication: Hi 'Chicago, Dec. 17, 1914. Mr. Don. HI .. cf Robbins, Salt Lake City, Utah. H f " ear r' Bobbins. Pursuant to your HI ". request I am pleased to set forth the Hl ., present tentative conditions relative to M' the future iron and steel possibilities, H '" 80 ar as tne interests I represent, h(- " ns consulting engineer, are concerned. H ' You may realize that matters pcr- B taining to Western steel enterprises H' nro today in the most severe condi- B tion of history. Only a year since J , the outlook was every encouraging, H , Cut the conditions conducive to the se- Hjf 'curing- of a possible steel plant for HM southwestern Utah and incidentally Ha the financial interests incident there- H P hnve been completely effaced for Ha sonic time, owing to the greatest ca- ' lamity that has ever presented itself H ' during modern times the European E j wJar vfflMahyTdo'no.t understand that the Hb foregoing is true, but a student of U economics readily sees tho futility of B endeavoring to contradict this state- M ment. Of all countries of the earth H the United States is the only one R which has not been absolutely com- H polled, to nationally declare an indefl- HK nlto moratorium; and this has only H been averted in this country by and H through the new national regional HM banking institution, and it is this very HV institution which is going to aid the people I represent in Anally carrying H forward our program for a steel mill HJ in south Utah, and in this I believe Hi that time will show that Wo will be the H) only people on earth even entertain- E ing the idea of giving south Utah iron Ht' a serious thought, in so far as its ac- H tual utilization is concerned. HR War AfTccts Iron Markets. Ha As this great war has produced a n financial condition in Amorlca which HJI will under no consideration present H nn encouraging feature for the great ' steel institutions for years to come, it H therefore stands to reason that my H people do not feel that they should H t'ivo further consideration to a steel Hal plant in south Utah, unless the own- HB pre of iron properties, none of which HH are worth a dollar of real money until B they can actually be utilized, desire to HJ9 allow (hem sufficient time so they can HJB afford to continue to advertise that tm section and its possibilities in such a HH manner that a steel plant may bo er- HflH ected by parties other than present HJH steel mill owners, and to reach these HH people in a way to show tho ncces' H uity of a steel plant in that section B cannot be done in a hurry, nor will it HH require an unreasonable time, in my HK opinion, yet many developments arc HL . contingent on producing sufficiently B T0??lld and warranty reasons whoroby T MC DC0P' as would bo willing to HB itertain the idea of a steel plant in HB. uth Utah could properly under- F find u situation my people are in a HB 4B4'n tocscnt, and a position no HB fimtL. fM ' Co'S Losa of Business. BB yrfiight cite many reasons why I u W.teel mill owners will not nor BHM ; Jl ufd seriously; even gq iiito the qucs- HB '' pn of a ateel plant in the west today. K. owever, shall only givo you the E indition of the Colorado Fuel & Iron L . , a. . , . v. impany according to the last fiscal HHg rfport of that company, They sufforcd IB f) decrease in earnings last year of B mere than six millions of dollars as H cQPlpnved with the previous year, and B uncsq material changes take placo in HBB tho near futuro they will be compelled HHj to continue a heavy annua! loss or HH ceae t'r manufacture of steel in the B west; und this contrary to any c(rcu -, Inted reports or references of anyone. ' 1 cite this to show you that a western I steel plant under prevailing condi-I condi-I tions must havo every natural advan-I advan-I tagc and location as to markets, or I else it cannot expect to compete with eastern mills where markets are near, freight rates very low and wnter transportation in easy reach. None of these are found in south Utah, unless un-less markets arc made, new lines of transportation constructed and branch lines built to rnw products. Panama Canal Reduces Freight. As you may know freight rates have been lowered on all steel products pro-ducts since the Panama canal has been operative. In fact steel and iron is now shipped, via wator, through tho canal tool included, at less than $5.00 per ton. This will prove to you that competition will be exceptionally keen on tho Pacific, oven under the best of conditions, and prohibitive under existing conditions. Another matter worthy, of interest is the fact that my people have been offered the iron deposits of Lower California, Cal-ifornia, and though not so extensive as the south Utah deposits, they are of, considerable note and lie on the Pacific coast; yet I personally favor south Utah and stand ready today to use my technical influence in securing a steel mill in south Utah, as but one steel mill will bo erected west of the Rocky Mountains in our generation. Notwithstanding the fact that my people peo-ple actually own extensive iron deposits de-posits in Utah, they could well afford to entertain tho Lower California holdings, since tho owners are holding out exceptionally reasonable terms. You arc also aware that a great deal of my time has been demanded by thcvSouthwestem Pacific Railroad Company, as chief engineer, and unless un-less property owners in south Utah care to meet me half way I must continue con-tinue to devote most of my time to this company, yet with the proper inducements in-ducements I could arrange to transfer trans-fer the cngineerinR.jpCAlte ..company to its chief field engineer, and thus I ?ould devote more time than in the past to tho iron and futuro steel possibilities pos-sibilities of 3outhern Utah. Favors Plant in Southern Utah. You are quite cognizant of tho fact that I have gone before every steel interest in this country and a greater portion of the steel people of Europe and being thus known and fortified I feel that I know just what must be done in the future and how it must be done to succeed in so far as south Utah is concerned, and I stand willing today to put forth every ev-ery effort townrds securing a steel plant for south Utah, and with my influence in-fluence used in this direction there is no doubt of consideration being given accordingly, and this over any other section of the west. And my people aro undoubtedly the only people today in a position to carry forward a plan for the erection of a steel plant in the west, let it be Utah or in southern California. In concluding this letter I wish to say that if thoso holding properties now under contract to the people I represent care to continue such relations rela-tions and have faith in my being able to serve them to the end that a steel mill will find its way to their section, I will be glad to do my part and ask that new contracts be embodied in futuro fu-turo efforts, and I feel justified in stating that success will most assuredly assur-edly be tho result. ROLLA E. CLAPP. |