The Alaska daily empire., 1917-12-08
CASE OF GOLD MINER

The following statement has been prepared by the Oatman Bureau of will be placed in the hands of the various organizations, bureaus, newspapers and periodicals interested in mining well as congressman the mining states:
 The gold mining companies of the United States as well as all the connected with the industry patriotic and loyal as any class of citizens great war began. These companies that are making profit not asking for relief from the heavy taxes imposed upon them by the recent War Revenue Meas ure adopted by the Goth Congress-
 The Homestake the Cresson, the United Eastern and other dividend paying companies have not asked @ for exemption from any of the burdens Of war tax that they may be called to bear, so far as we have been informed But the constantly decreasing output gold the entire country is disputabe proof that the gold mining industry whole is seriously threat ened.
 During the past three years the average range of commodity prices has increased than 40 pc rcen according to official statistics Cold, however, being the standard of values remains at $2067. That means that gold the product of the mines, will only buy 60 per much of the commodities of commerce as it would three years
 On the other hand the cost of producing this gold has increased about 35 per cent according to figures obtained from reliable As concrete example of how gold mining companies have been af- fected, the of certain company might be cited:
 This mine contained ore that averages $4Oo per gold, and for it's operating costs been $500 ton, leaving net profit of $10O per They now find however, that their costs have increased 35 cent, slightly than $100 per ton, so they cannot make any profit all.
 If they did take out gold bullion they could only buy 60 per cent as much powder and steel and groceries they could have purchased three years ago with the amount They have therefore wisely decided to shut down until return to normal conditions when they can again mine for $500 per ton and buy more this worlds goods with the $100 per profit.
 There of course many gold mining companies still able to operate at profit with the extra ordinary high prices prevailing but have ceased operating thus still further reducing the nations out put of gold
 But the most serious phase of the case of the gold miner is that relating to the partially developed gold property prospect Many of them have proven deposits of in sight, potential mines in making but the future outlook for them is such as to encourage further development and production
 nil he ndu uced to in industry that is subject to increasing costs and heavy besides, without opportunity to take ad- vantage of enhanced value of the product.
 They naturally prefer to allow the gold stay in the ground until the war is when hey can see probability of mining their at profit While willing to help bear their share of the burdens of war they cannot see their way clear to operate at loss and then pay heavy war taxes besides.
 It is this combination of unfavorable circumstances that is causing the depression in the gold mining indus try the reduction in the output gold the general stagnauon at the time when every other field of hu man activity IS enjoying unexamped prosperity Even the prices fixed by the government every other product of farm, factory mine is yielding unusual profit the producer. Gold alone suf fered steady decline in purchasing power, coupled with increased costs of production
 On behalf of the gold mining industry in general fore ask that some measure of relief be devised by the government in order that gold production may only be maintained but stimulated to greater proportions As of attaining his end. we believe it nc more than just and fair to exempt gold mining com panies from paying any extraordinary the government
 For the first six months of 1917. the total gold production fell off more han Ia per cent compared with 1916, which much below the average for the past ten Unless assistance is extended to industry in general this decrease will continue an accelerated pace as long war continues.
 oATMAN BUREAU OF MINES.
 By R. S. PORTER President
 E. H. MCPHERSON. secre ary