Show Tariff I ii VH f I Cuts r JL I JL I i uis aten F m Utah H By OTTO orro HERRES Mining Engineer After Arter feeding the world and pro- pro providing providing viding riding metals for tor the great arsenal nal of ot democracy the tho productive Indus Indus- Industries Industries Industries tries of the tho country and the tho man man- manpower manpower manpower power made strong by our great na nn natural na- na natural tural resources are being threat threat- threatened threatened ened with converting in various ways and If ft they see tariff rates coming down and foreign markets opening up they may nay be forced to convert to tho the things that offer the best opportunities s under those con con- Perhaps this advice can be extended to tell the tho people of the West Vest and South to what they should convert the farms forests mines fields railroads and related ac ac- ac- ac v The Administration bill to extend the Trade Agreements Act would permit tariff reductions up to 50 per ver cent from the rates prevailing on cn January 1 of this year in new reciprocal pacts that may be This proposal goes farther than its predecessors in that it would authorize a further 50 60 per percent percent percent cent cut in rates that have already been reduced by earlier trade agreements Many tariffs have been reduced by 50 per ver cent in agree agree- agreements agreements ments concluded with 27 countries since the law was first enacted in 1934 although the average reduction reduction tion has been around one Tho State Department now Is seeking authority to go further with tariff cuts than it has been possible to todo todo todo do do so far tar The Tho Administration is asking Congress for an extension of executive tive power to reduce tariff rates as much as 75 percent The livestock grower farmer miner and lumber producer are asked to meet neet foreign competition Workers in this plc- plc ture are looking at low foreign wages brought here hero in the form of raw material imports An example may be found in the case of zinc The 20 per ver cent reduction in Im im- Import import Im- Im Import port duty dut on zinc resulting from the Canadian Trade Agreement signed November 17 1938 was a heavy blow to the domestic zinc industry and proved roved a threat to our national self Under the most- most nation favored tavor policy the duty re reductions re- re ns granted Canada in the Reciprocal Agreement automatically ly applied to imports from all zinc producing g countries except Ger Ger- many As a direct result of ot the duty reductions from to cents a pound on slab zinc and from to cents a pound on zinc contained In ores imports In In- Increased Increased Increased creased materially in 1939 The St. St Louis L u quotation for tor prime western zinc dropped from to cents a pound and remained at this level until late July 1939 when markets moved upward on buying in anti anti- anticipation of ot the outbreak of war in Europe The tariff reductions caused a drastic curtailment of ot tho the domes domes- domestic domestic tic zinc industry Several mines and smelters were compelled to close wage wago cuts were forced in some districts and search for tor new ore reserves became uneconomical as the selling price barely covered operating costs without provisions for tor depletion depreciation or adequate ade adequate quate return on capital Investment The Director of tho the Bureau of ot Mines Dr John W. W Finch in April 1938 stated I should like to sug sug- suggest suggEst suggest gest that a reduction in the present tariff on lead and zinc can hardly be lie considered in the public interest it If viewed from the standpoint of or national defense Time soon proved this statement to be correct be be- because because cause an extremely tight position existed throughout 1941 until idle plants could be rehabilitated and new plants gotten under way A Amore Amore Amore more serious condition probably would have prevailed in the zinc industry of the country if the period of low tariffs had been of longer duration In the case of most raw materials cost of ot production in the United States Is influenced by higher wage rates in this country Domes Domes- Domestic Domestic tic mineral producers are at a dis disadvantage dis- dis disadvantage advantage in comparison with for for- foreign foreign eign producers because of ot the low low- lower er or grade grado of ot ore found In domestic deposits deposit Formerly these disadvantages disadvantages vantages were offset by superior technical skill and the use of improved im proved machinery Now American mining practice has been adopted abroad and foreign costs of production Hon tion reduced accordingly Zinc copper and lead have contributed con contributed notably to the war effort and are recognized r as indispensable for tor the defense of the nation Meas Meas- Measures Measures ures must be taken to support the mining of ot these metals as a vital part vart of ot the war post industry and of ot our military security Additional tariff reductions to weaken the min mm- mining minIng ing lag Industry is riot not the correct answer Lower import duties will serious serious- seriously ly injure producers of essential metals and result in Ia extensive un un- unemployment un- un employment in Iii our metal mining areas and depression In tho the regions surrounding them thorn Because mining often orten is the only occupation In these regions the problems of stranded population can be anticipated The East knows something of this from the struggle in the coal mining regions and experience with boot boot- bootleg bootleg bootleg leg conditions and distress in the tho anthracite districts before tho the war Zinc mining covers a wider area extending from the eastern states state's of New York and New Jersey through the central states to the west and Pacific coast Studies show that for every overy ton of zinc im Im- imported Imported im- im imported ported in the form torm of concentrates the loss In employment in the I Rocky Mountain area amounts to I mn f n i I zinc ore ora ana lUI lug iho r lead and Iron concentrates produced ed edIn in the milling process Including the service industries dependent on this work total employment In In- Increases Increases In- In Increases creases to to man shifts rep rep- representing representing resenting support for tor ona one day of ot approximately workers and de do- In case of the importation Importation tion of tons of zinc per ver year to to displace Rocky Mountain pro pro- production production production people veople would be de- de deprived of livelihood that Is times divided by working days In a year equals with with- without without without out taking into account tho the loss of employment in other areas because of loss of or western w t markets S OBTAIN MiNE l LOAN N J J. v. v Sawyer chief clerk at Sliver Silver King Kini Coalition Mines Co Park City and his brother F. F F. F Sawyer captain in the th firmed armed forces have obtained a a. R. R 1 I C. C development loan for tor the Red ReC i Cloud group of ot zinc lead claims 14 1 miles mUes west of ot Halley HaUey Idaho Tho The property is owned by the two brothers and the operations Involved to ix reopening the former heavy producing mine will be under the direction of ot their father J. J Sawyer mining engineer of or ci Boise Idaho sundays Idaho Sundays Sunday's Tribune STOCK SALES THURSDAY New Ne Park Park SO 50 New r r FRIDAY New N w Park Park doe GOc MONDAY Ne s Ne-s 1000 1000 TUESDAY Park City Consolidated 2500 2500 WEDNESDAY Park City Consolidated ConsolIdated 2000 2000 1500 1 I- I |