Bisbee daily review., 1917-12-02

/ nt lOllONllS lldS Dttl
prepared by the Oatman Bureau OF
Mines and will be placed in the hands
of the various organizations interested
in mining, as well as congressman
from the mining states:
The gold mining companies of the
United States, as we'll as all the men
connected with the industry, are as
patriotic and loyal as any class OF
citizens, as has been demonstrated
in many ways since the great war be-
gan. Those companies that are max
ing a profit are not asking for relief
from the heavy taxes imposed upon
them by the recent war revenue meas
ure adopted by the sixty-fifth con-
gress.
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
upon to bear, so far as we have been
informed. But the constantly decreas-
ng output of gold for the entire coun-
try, is indisputable proof that the
gold mining industry as a whole is
seriously threatened.
During the past three years the
average range of commodity prices
has increased more than 40 per cent,
according to official statistics. Gold.
however, being the standard of values,
remains at S20.67. That means that
gold. the product of the mines, will
buy so per cent as much of the COM
modities of commerce as it would
three years ago.
On the other hand, the cost of pro-
ducing this gold has increased about
IS per cent, according to figures OBJ
tanned from reliable sources. AS a
concrete example of how gold mining
companies have been affected, the
case of certain company might be
cited
This mine contains ore that aver
ages $500 per ton in gold, and for
years its average operating costs
have been $500 per ton, leaving a net
profit of s100 per ton. They now
increased 80 per cent, or slightly more
than S1.00 per ton, so they cannot
make any profit at all
If they did take out gold bullion,
they could only buy so per cent as
much powder and steel and groceries
as they could have purchased three
years ago with the same 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 of
this worlds goods with the S1.OO per
ton profit.
There are of course many gold min
ing companies still able to operate at
a profit even with the extraordinarily
high prices prevailing. but many have
ceased operating, thus still further re-
ducing the nations output of new
gold.
But the most serious phase of the
case OF the gold miner, is that re-
lating TO the partially developed gold
or prospect Many of them
have proven deposits of ore in sight.
potential mines in the making, but
the future outlook for them is not
such as to encourage further develop
ment and production.
Capital cannot readily be induced
to invest in an industry that is sub
ject to increasing costs and heavy
war taxes beside, without any oppor-
tunity to take advantage of enhanced
value of the product
They naturally prefer to allow the
gold to stay in the ground until the
war is over, when they can see a
probability of mining their ore at a
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.
1t is this combination of unfavor-
able circumstances that is causing the
de preston in the gold mining indus
try, the reduction in the output OF
gold and the general stagnation at a
time when every other field of human
activity is enjoying unexampled pros
perity.
Even at the prices fixed by the
every other product of
farm, factory or mine is yielding an
unusual profit to the producer Gold
alone has suffered a steady decline
in purchasing power. coupled with in
creasing costs of production.
On behalf of the gold mining in