Show INDUSTRY N D U STRY HOPE IV t V RF rm 4 jai n we nwe 44 am AN idle land 1 annin cj wah 7 J Y an 4 A 3 arff 1 at Y e in the first halt half of his bis address mr hunt has haa pictured tho the lose losa by utah of two thirds of its ita young people and suggested industrialization as a remedy this last half deals specifically nith industrialization ADDRESS OF PAUL H HUNT to associated civic clubs of southern utah HE nonferrous non ferrous metal mining THE industry in utah from 1920 to 1930 distributed in wages salaries purchases of supplies and services in utah or somewhat more than 1000 tor for each man woman and child in the state the greater part of 0 this huge disbursement bur was spent within the state at least once before the money left the state which would account for eor more than 2000 ot of per capita gross In income conle which amounts to about 45 0 of the total gross income of the people 0 of utah having been derived directly and indirectly from the nonferrous non ferrous metal mining industry these disbursements in utah represented approximately of the gross value ot of the nonferrous non ferrous ores produced in the state in this decade the gross included about aclo 3 in state and local taxes in federal taxes about 2 ao 20 stockholders or of mining companies received 82 in net earnings and the balance was absorbed in freight charges outside the state refining costs metallurgical losses and selling expenses it if we include the last six years in this 10 year average the net profits of mins mine stockholders have averaged slightly less than 4 of the value ot of the ores produced there are two ways ot of interpreting such euch figures one unfortunately the more popular is to protest that 3 aco ot of the of ore representing state and local taxes is an inadequate return ot of the wealth produced the other and the way we should adopt it if the mineral industry in utah is to grow is to compare the earnings of mine stockholders with the new wealth this industry distributes directly and indirectly in utah in the 1920 1 20 0 decade the people of 0 utah received about 9 times as much from the mining industry as did the stockholders from 1920 to 1935 inclusive they received more than 20 times as much income from mining as the stockholders it if utah can get its natural resources converted to money wealth and have distributed in this state 75 to 80 of this wealth for an average commission over years of prosperity and depression of not to exceed 4 40 of the wealth produced and it if those receiving the commissions all the capital and assume all the risks then we have hava made a very good bargain indeed this Is possible because every mine operator hopes to make more than 4 and a few ew of them do and also because much of the ore Is low grade and yields a very low margin of profit to the producer the industry we must remember Is in severe competition with mining in other states and countries we are in competition in securing capital tor for the development of our mines it if other regions offer better commissions than does utah they will attract investments and the industry in utah will slowly die out utah mines must also be able to produce a pound 0 of metal and sell it in consuming centers as cheaply as competitors the grade of ores in utah is generally lower than in com c 1 aps our nur taxes 2 to 2 times higher in utah and our i ia costs somewhat above the average As offsets our ore bodies are generally continuous for long distances salt lake valley is the greatest non nonferrous ferrous ore smelting smelling sm elting center in the world and electric poa power and climatic conditions are favorable li mining fining is in a delicate balance unwise legislation will not close every mine in the state but it could easily slow mining down until it plays a minor part in our industrial economy we know little of 0 the wealth of natural resources in utah except that they are very great A 60 mile radius centering at lund junction a huge which where it has broken through the overlaying sediments has deposited gold silver lead zinc and copper ores tor for which a quarter of million dollars has already been realized near cedar city are the greatest deposits of aluminum ore in the world at least tons oil drilling in southeastern utah has disclosed huge deposits of I 1 salines containing 10 to 12 of magnesia coal deposits estimated at over tons are six times the reserves of the great coal state of pennsylvania in iron county alone the iron ore reserves are greater than those of alsace lorraine over which france and germany have fought for the last years in utah for a time at least we have reached the limits of our surface development we must get below the surface we do not need nor should we expect a rapid development of our mineral resources it if we can expand them only a few percent a year we shall be able to care tor for our growing population |