Show It j Mining Hazards I H I i I H 1 I I till H I Editor Park Record NONFERROUS METAL mining la is hedged about with hazards and liabilities ties that threaten Its existence to a largo large extent First Only First Only one venture out of or several hundred succeed In opening up paying mines of long lived production Second Second Having Having this paying mine as a continued success will wUl depend on hun hun- hundreds hundreds hundreds of problematic conditions Third Third Third-It It Is 13 necessary to recognise the certain limitation of Its life The values values' ore are measured In the earth Every ton of ore extracted lessens the total A farmer can renew his crop but a mine mino can only renew Its ita search Fourth Fourth Fourth-A A method of self support must be followed followed- a part of the the not no profits must be put back into new actual underground prospecting In ad ad- addition addition addition to putting aside a a. reserve for a period that may fall fail of sufficient profit Ore reserves must be kept ahead of ex ex- ex traction Fifth There Fifth There must be loyalty to tho the theone one company companS' and all concerned In the original company participate proportionately proportionately proportionately In Its expansion Sixth Sixth Invested Invested capital demands some earnings as well as some chance for the eventual return of the Invested capital I In short unless the mining business can show some return of or capital and interest no capital can be found with which to carry on such a venture All I about us we can mark that kind of end- end ending Ing ng that which wipes out the enterprise I and with It the related business of ot machinery power supplies and labor None fone of these things make a mine they are only creations that thai follow the tho suc suc- successful successful enterprise and these things take takeno takeno takeno no hazard Comes the question how bow Important 13 is metal mining to the community to the state and the nation Professor Lewis of ot the he University of ot Utah recently under under- undertook undertook undertook took to show In a notable public lecture the he absolute necessity of metal mining to the support of the nation nation and and he proved It most vital Comes then another question what recognition fair consideration and en en- encouragement encouragement Is given the metal mining business of the west by the people the state and by the federal government Mining has no subsidy s sidy the domestic I of silver yields the government one hundred per cent profit without the Investment of one dent cent and the price the producer gets does not average the cost of the silver sliver Farming and other lines of enterprise are paid a subsidy I Metal mining on the contrary Is 18 weighed with an ever Increasing burden that threatens to destroy It it and has bas stopped It In many cases Consider some of these burdens there are now a dozen forms of or taxation allow me to specify and list them them them- Federal Capital stock tax Federal Income tax Excess Profits tax Undistributed profits Both hinder making a reserve Federal Old Age Title VII VH Unemployment Title IX IS State Property tax State Net Proceeds tax State Corporation Franchise tax State Unemployment tax State Sales tax State Use tax Add to these the heavy tax on labor against accident All of which adds to the expense for clerical work The Insurance on labor accidents Is a meritorious expense Unfortunately Just now there Is a disagreement between labor and a Park City mine offering to renew full operation of Its property on I the question of f physical examination of the men to be employed I. I Life Insurance companies require this I and I am nm Informed that most of the big mining companies require It Park City labor as published In The Park Record contend that this doctors doctor's examination will work an unfair hardship on many of the old employees formerly employed by the mine when It closed down some sometime sometime sometime time ago The Labor Union there asks for tor the return of ot the old or former employees In a body without any phy phY- physical phYsical physical examination This seems to raise a grave question It must be admitted that time deals with all nIl human beings Any large number of men former workmen must have suffered changes In health as to some of ot them There may have been funerals There are ailments not always apparent such as ns heart trouble In several forms and other ailments aliments that may bo be dis dis- discovered discovered dis- dis discovered covered by the examiner which would be bevery bevery bevery very Important for the applicant himself to know the knowledge of or which might save his life as well as declare him bim among those unfit for tor labor In or about the mine However It Is 18 pathetic when an anold anold anold old faithful former employee falls fails to meet the standard test by a small fault one having his home bome there who has suf suf- suffered suffered suffered privation or run In debt It would seem only fair If such men their con con- condition condition condition known could be placed In or about the big mine where the work was less arduous L with less danger of falling at nt an unexpected moment to lose their lives or endanger others depending on their action I dont don't pretend to know anything about this matter but the Labor state state- statement statement statement ment is addressed to the people of Park City I am not now a resident but I Ido Ido Ido do feel an interest and sincerely hope some satisfactory agreement can be reached It might be that If tf the examina examina- examination examination examination tion went through as planned that some understanding could be had bad with the mine management to undertake to find suitable places for those who fell below the standard for some reason not of a serious nature but were able to serve In Inless inless inless less arduous or dangerous places Very likely I will not be bc thanked for tor making any While I no longer have bave any financial Interest In any Park City or vicinity property or any stock I have a real interest In seeing all the mines ml In op operation op- op operation for In that general prosperity I will have a chance to get outside capi capi- capital capital capital tal to help my mining efforts Space permitting I should like to call attention to a feature not always con con- considered considered or recognized r at nt its proper value That Is method and policy of mine op op- operation operation op- op cration for tor continuous or long time op op- operation operation as against exploiting for quick gains regardless This was brought to mind by an observation of a a. former Park City resi real resident resident dent In a recent letter published In The Record The reference was to the th old I Ontario Mine days and the local man man- management management gement of Mr R. R C. C Chambers and Mr W Daly as compared with Idle idie mines today Continued on Page Four Mining ining Hazards Continued from rage race la e One This deals with a 0 period of time of my experience In lD Park City that I have not forgotten In the criticism that may fol fol- follow follow fol- fol follow low will wUl not be a 0 personal application for men then as now did what they must or what they thought best As I look back I can criticise myself for failures The Ontario was was wasa a paying mine from the time of Its purchase by men of California with large capital There was practically a virgin field fl for large opera opera- tion The Ontario worked on the one vein ore oro body and did very little If any prospecting of adjoining ground It did not even protect a part of or the apex of the vein from which It was extracting ore the truth of which the management knew was In the Henrietta claim clafin ad ad- joining With a 0 part of the profits of the tho ore It did not own It could have havo bought that claim reasonably But It chose to fight and In the tho end paid fifty or more moro times the offered sale price This narrow contentious policy was con con- continued continued continued Instead of or spending some of the largo large profits for extending explorations and buying what was of indicated value Development westward on Its vein velD In Indicated In- In Indicated the value of the Daly block of or ground on which that mine was based This should have been a part of the Ontario that caused Its value to DC no known Here was waa lack of loyalty to the parent company stockholders The Daly was under und r the same California control as the Ontario Again as the Daly explored Its vein westerly Indicated values were known In the adjoining ground and this was acquired by Chambers and Daly for themselves this too should hould have been beena a proper part of the parent company If exploration and company loyalty had been followed as a n principle Even here the same policy of gut the mine was followed and part of the apex of this mine was In the adjoining ground of or orthe the Quincy mine which could have been had cheap at most any time up to the use of this knowledge by men working underground In the Daly West Then It was wa too late It cost the Daly West a n great fortune and for a time threatened the loss of or millions of extracted ore values long since used In dividends paid out The Tho Ontario had a n great handicap In excess cess water It finally put through a amile mUe tunnel to the foot level which expense should have been put Into thelong the thelong thelong long three mile mUe tunnel that was driven to the fifteen hundred foot level This was done when the mine was practically gutted as to its only vein explored This was Justified long years before when it would have saved more than its cost and have enabled tho the company to ex ex- explore ex- ex explore explore the tho great mineral field about it had the policy of the company been teen to tomake tomake tomake make a 0 continuous producer Instead of ofa ofa ofa a fast exploit of easy values The On On- tario tarlo lasted last d about twenty years then as asa asa asa a sucked orange It was tossed aside The stock was evidently boomed over an empty hole to the highest price In fn Its history to about to per share then the main holders unloaded as far as os possible as the stock dropped to the mark Contrast this lack of constructive op op- operation operation op- op for continuous production and lack of loyalty to the parent company with the Silver King as expanded of to to- to day The Silver King began small Email but It Jt was always animated with a progressive spirit even a 0 ruthless spirit in fn its early history from which I and my partners suffered the ilie loss of a great fortune However How How- However ever ev r. r that Is another story and at this distance in time I can give credit for certain enterprise and never falling loy loy- loyalty loyalty loyalty alty to the parent company that steadily explored and nd acquired until a great em em- empire empire empire pire of mining territory Is the result Here is a record of cf more than fifty years of ot production with planning and de development de- de development development going on toward another fifty fUty years rears ears provided it be not loaded with unfair burdens A long chapter could be filled WIth the history of or the Silver SUver King now known as the Silver King Coalition Mines company with its vast system of exploration tion Taking from the profits to and near half a million dollars annually to make a lasting producer as it always kept Its ore reserves well ahead of extraction regardless of cost This mine has hundreds miles of openings made since it began extend extend- extending ing over miles of underground area Ita Its constant loyalty to the one company to its stockholders who number several thousand and its able and economic management devoted to company inter Inter- interest Interest Interest est commends approval and admiration for great accomplishment This is not fulsome fulsom praise but hard boiled facts that can bo be proven The Tho hazards of the Sliver Silver King have been met and conquered up to this time except when in the opinion of the directors it was best b st to close general operations for a time Meanwhile the never falling failing policy of further development develop develop- development develop I ment was carried on In the great shaft at the head bead of Thayn s Canyon now down about 1450 feet fe t. t planned to go 1800 to 2000 feet a 0 factor in the new de l de- de development development I of great possibilities Also the the I i mine has been protected prot where necessary sary Bary by its pumps This Is very different I from closing a 0 mine up as to its future being kept ready to start promptly Reasons for the shut down were given out bv by Mr Ivers the general manager maniger of or the tho Silver King in the Salt Lake Tri Trl- Tribune I bune of April 28 1038 1938 and were copied by The Park Record as M follows Con Confronted Confronted fronted by depressed metal markets fast mounting surpluses of lead and zinc and high labor and material costs the tho board of directors after a canvass of the com com- company's pany's economic economic- position concluded that to continue to deplete the tho company company's capital resources would react harmfully upon the tho Interests of all concerned By the way there are about 2500 share share- shareholders shareholders holders concerned As Asto to a further comparison of burdens bu e the Ontario had no load of ot taxes as as enumerated only to a simple c state st to tax tar rather a n property pro erty had hod high metal etal prices It had labor at low wages wage and long hours It did have some BOme I 1 in the cost of power and excess water The Tho Silver SUver King of today has the great tax load reduced metal prices higher cost of mine supplies higher wages and hours for labor as well as a large undertaking In development yielding no present return Big mining enterprises throughout tho the state and the west deserve encourage encourage- encouragement encouragement encouragement ment relief from heavy taxes and the protection of prices for their metal pro pro- production production production which is a national asset as aswell aswell aswell well as the all important factor of or em em- employment employment employment which they may provide as asgood asgood asgood good labor well wen paid is vital to pros pros- AU All directly concerned should make it possible for these great mining enter enter- enterprises enterprises enterprises to keep going and share chare their blessings Let all parties concerned In their op OP- OP operation remember that it is easier to guide a moving thing than to start It from a stand still CHARLES E E. STREET February 6 6 1939 1039 Salt l Lake City ty Utah i A |