Bisbee daily review., 1918-01-06

OPERATORS HAVE
 NO ROSY PATH IN
 MAKING HEADWAY

! Two principal problem confront the mining industry in Arizona and other western mining states this year. either one Of which may be attended by sharp awakening O. the general public to the fact that large mining opera tlonS do not traverse a road oOrdered wstn roses minus the traditional thorn. and. more than that. that when the
 thornS get into the flesh of the biz fellow the hurt is felt just as sharply oy everybody around him. which. in the case of ArizOra. means everybody in the state
 The first problem IS the mainten- anee os production Ot metal at ,he high rate which is necessary 10 tAe government and it's allies and at she same time to keep up the development or ore resources which must go hand in hand with mining if capacity Is maintained, just as much so as it IS necessary that the workman should have feed sufficient 10 a full days shiit if he is going tO work.
 The second problem is that of f-
 
 reached self sustaining stage. and properties which have the promise Of making new producers if able tO se- cure the money for development. Aid to both Of these classes of properties k essential in order that new re- sources may be made available to take the place of those withdrawn from the ground. made into metal and de strOyed. This is precisely the same as replenishing food supplies and cloth ing supplies as they arc taken from the stocks of the stores.
 Mining men agree that in the first problem the solution rests entirely with the government. In part. so does the second. Either advance in the price of metal or lowering of the cost of supplies will solve the problem cf gaining and maintaining maximum production and carrying on prOpoTtion- ate development in established mines. Both Of these matters have been taken in hand by the government. Al the present time both advance in the price of the metal and reduction sn the cost Of supplies are necessary in order to prevent small producers t'Om continuing Co go out Of business and large producers frOn continuing to sap their strength that should be main tained. in such instances as it has not already been necessary to cut down production In order t0 avoid ruin Of property upon the efforts of the gov ernment during the short period it has maintained practical supervision and control for the price of metal has been lowered instead Of allowed to 90 to the figure which costs justify and which sn open market would establish while the cost of supplies has been advanced in more thSn 75 percent of Sn lines used and lowered in none. This is the opposite Of the course which the needs Of the mines require. but is open Co correction as the work of the government proceeds. The hardshipS of the policy to date of course fall equally upon the mining operator and the operative. precmdine the latter from higher wages to meet higher living costs. no matter how we'll the mining operator may under stand the need of increased pay or how deSirous he may be of giving it. As long as he is not receiving in- creased returns he cannot pay them. Under the government fixed price of 2SI cents he is receiving less than T. cents represented in 1914. while paving wages that would have been proportionSte in their increase to a iSiS cent metal market in that year. Except for the fact that surplus funds were created during high metal mar ket periods and vast sums expended upon advance development and he installation of equipment Of higher efficiency. there could be no operation now except al loss, Of course. also. the resources gained during gOod periods are now being exhausted. in ore. increased mechanical efficiency and finances. and rapidly St that
 The problem of financing properties not yet advanced to the production stage but having suciCient develop rlent to warrant such financing, and oG financing them wholly in the prospect stage but having sufficient develop promise. will be helped by certainty of better metal prices. but far from wholly solved. Tightening Ot money for new investment win probably he more marked in 1918 than even Tn the last half of lSt7, Properties not at this time fully financed Co meet their requirements have hard road ahead no matter how great their merit. This road will be made an the harder by the increased activities ot spoilers who made their livings from Sdvanc- ing promotions without merit and who double their energies and Setivt ties in close times. Many ot these are now operating in mineral and oil prospect promotions and making sert GUS threads upon the capital of small investors. the aSgreate Of whose mon ev would be highly important n direct cd in the development of S few pro2er' ties of real worth. Correction of this situation is more a matter of local CT fort and under the best of eirru1