The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1920-08-26
NEVADA INDUSTRIES
RUINED BY FREIGHT

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Increased transportation charges
on interstate railroads in the United
States became effective at midnight
last night. Rates on transportation
between points in Nevada will not be
increased, the matter being at pres
ent before the state public service
commission, says the Reno Gazette.
The increase on freight shipped in
to or from Nevada points varys from
| twenty-five per cent to points in
Rocky Mountain states to thirty-three
and one-third per cent on shipments
| to or from east of the Missouri river.
Passenger fares for interstate trips
will be increased twenty per cent.
Rates for trips wholly within the
state OF Nevada will not be increased
until the state commission has issued
| it's order
Several Nevada industries will be
seriously affected by the increase of
interstate rates. Wool shipments will
De among the hardest hit. Wool
| shipped from Reno to Boston in bales
| now pay $1.99 per hundred pounds,
and under the new rates the cost will
be Sassy per hundred The bulk of
Nevadas wool clip is shipped to Bos-
| ton.
Rates on wool at present are ex-
| eessively high from Nevada" said Mr..
Walker, manager of the Reno traffic
bureau. Shipments from Winnie
nucca in bales now cost S2.21h and
will cost s2.951a. Points ON the Pa
;ific coast have lower rates than do
| we here. The rate from Sacramento
under the present tariff is S1.76ia and
under the new tariff will be $2.351a.
The lower rate enjoyed by Califor-
1ia points is relic of the old back
haul day and should be adjusted be-
| fore any blanket increases be per-
| nitted"
Shipments of live stock will con-
| Linue at about the present volume, but
the consumer will pay the bill, ac-
cording to George Russell, Jr., of
Elko. who said that the increased
rates would make little difference in
| he movement of live stock. Sheep
and cattle will pay about thirty-three
Ind one-third per cent more, he said,
IS the bulk of such shipments ). made
20 points east of Missouri. Beef
| steers shipped to Coast points will
cost only twenty-five per cent more.
The mining industry will be most
| ffected. Shipments of low grade ore
20 Utah and California points have
about ceased for the present, accord
ng to mining men. Several large pro-
| iucers in the state have been shipping
! ore at a margin of about fifty cents
a ton. That margin of profit is wiped
| out b. the rate advance and those
mines will quit producing unless some
rate adjustment is made.
The smelter companies have al
ready sent out notices of increased
smelling costs. One Salt Lake smell
ter has notified shippers that, effec-
tive yesterday. the price paid for
metals there will be reduced one cent
per ounce for silver, twenty-five cents
per hundredweight for copper and
lead
In addition the smelling charges
will be increased by the amount
added to cost of operations by in
creased freight charges on coal, coke
and other material used for smelling.
Unless immediate adjustments are
made there will be a great number
of small mines closed in Nevada
said a mining man at Reno. There
are many mines that ship few cars
of high grade ore each month. That
is the profit The same mines ship
many cars of low grade ore, ore
valued at around $40 per ton. This
keeps the mine working and gives
money to pay wages and other operat-
ing expense Unless the low grade
can be shipped at small profit or al
least at cost, few of the mines can
keep developing. Such mines will
have to close. Just how the shutting
down of mines will increase the raj
revenues of the country, it is difficult
to understand. and that makes mos
of us believe rate adjustments will b'
made that will permit the mining in
dustry to continue active in this STATE
as we'll as other parts of the West.
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