The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-02-27

resentatives of the labor OF the cop
per industry do urge and recommend
that congress pass such legislation
authorizing government aid as we'll as
furnishing the necessary long term
credits 10 facilitate the resumption OF
our export trade in raw materials,
agricultural products, and manufact-
ured goods"
IN the light of the foregoing" said
Mr. Gemmell, 1T is apparent that we
can not continue to produce and fin
ance the production of copper which
we can not now sell at any price, 1t
was therefore imperative to reduce
production, which action necessarily
carries with 1t an increased produce
ton cost In other words, as the
production tonnage decreases, the cost
per pound of copper increases. 1t
should also be borne in mind that our
costs have recently been and are now
such, that even IL there was demand
for our output at present prices,
which there is not, doubt very much
that we would be doing any more
than swapping dollars, when the cost
of permanent upkeep Of the property
is considered, and entirely regardless
Of the fact that these high production
costs do not include anything in the
way of return of investment for the
copper in the ground, which we have
paid for in the purchase and improve
nent of our property
All these factors considered. it is
an indisputable and irrefutable fact
that true economy of operation. OF
what might he termed selfish interest
calls for the closing down of the pro-
rerty until the restoration of normal
conditions. This we have no thought
of doing, and sincerely hope that such
action will not he necessary.
| At Bingham we are continuing the
stripping operations, rather than lay
off men. Stripping means the remov-
al of the overburden or waste rock to
expose the ore. This work Is always
kept several years ahead of ore pro-
ducton, and the true economy OF
present operations demands its cess
alton.
AT Magma we are operating the mill
ON a 80 per cent capacity. lnasmuch
as all of the ore nowe being produced
could be treated at the Arthur mill
true economy Of operations calls fol
! the closing down of the Magma mill
1t must be clear that 1t costs pract-
ically as much to operate the Magma
mill on a so per cent capacity as i
does on full capacity. The cost o.
treatment is greatly increased b!
this limited production distributed t.
the two mills, when one mill coult
treat the entire tonnage now being
produced. Should we close the Mag
ma mill it would mean one of tw'
things, to-wit: either no work for tn
entire working force at Magma, o
consolidating the Magma force witt
the Arthur force and providing half
time work for the consolidated force
This will not be done unless stern ne
cessity compels such action.
1t is a matter of keen regret to m
that wage reduction was necessar
at this time. i hope l have made
plain that conditions in no way con
trolled by the management force
such action. In this connection
should be borne in mind that tn
Utah Copper company voluntaril
made seven wage increases betwee
August |, 1914, and July /, 1913. TIL
fourth increase was made on Decem
Der /, 1916, and was based on a sell
ing price of copper at 2712 cents o
more per pound. Although the pric
subsequently fixed by the government
was below 27h cents per pound
three wage increases were made sine
December i. 1916, to-wit July
1917, February /, 1918, and July
increases, amounting to 81 per da
for skilled labor and So cents per da
for unskilled labor were based, no
upon an advance in the price of cop
per, but in recognition of the increas
ed cost of living expenses, and thes
three increases still remain in effect
In short, the present wages are base
OF the sliding scale, assuming quo
tation of 20 cents per pound for cop
per. and to the wages based upon 20
cent copper there is added the tire
wage increases aggregating 81 pc
day for skilled labor and So cents pc
day for unskilled labor in recognition
of the increased cost of living. TIL
outstanding fact is that our presen
wage schedule is today in excess o
the schedule which became effectiv
December l., 1916, based on cope
quoted at 27h cents or more pc
pound.
The problem before the copper in
dustry today is the preservation of it
existence, 1t is fighting for its yer,
life as an industry. l always hav,
been, and always will be an optimis
lis regards the industrial life of on
nation; / have no fear of the ultimat
4 results, but in the light of the fact,