Great Falls tribune., 1921-02-20

I tically every field but Montana. There
are certain difficulties of operation
that we cannot overcome in Butte, anG
thac tend to increase our cost, wher
compared to the cost of large copper
producers operating under more IA.
!! yorable conditions in other parts Of
this country and in South America. The
| TACT that We must 70 down in the
ground to depth Of 5000 feet to mine
our ore cannot be overcome. And this
thing OF fighting constantly against
nigh costs that are beyond our control
because OF our situation, has been ag-
gravated in the past by what we be-
ieve to be unreasonable rules and
/ regulations imposed upon our industry
by the labor. organizations with whom
we nave endeavored to continue on
friendly relations.
| cretely what this situation is, am
going to take the official figures that
| have asked Mr.. GilEe to give me
| from his desk and show you exactly
| what it cost us to make copper in
| Butte during the three months ending
the year 1920. It costs us-taken off
| our books-a total Of 1877 cents a
| pound for copper, without allowing any
value to the mining property, to the
machinery or plants or investment of
the stockholders of the company. and
during that time the prices of copper
| went down to where the only substan-
+! tial sales that were made were made
at 121a cents to 13 cents q pound for
copper.
Labor's Share.
''Now, we hear great deal these
days about labor obtaining its share,
about profit-sbaring; / don't know
what profit sharing of labor means in
an industry that is losing money; there
is no profit at all until labor, as well
as every other expense of production,
has received its share; everybody par
ticipates in the gross income Of an
organization, and. Of course, when the
gross income of the operation does not
amount to as much as the outgo. there
isn't any profit for anybody. But TAX
ing the sales price of 1212 cents to Is
last four months. I want to tell you
how much of that you got and how
much of it the stockholders got.
1.-The direct labor cost Of producing
copper for the last three months, that
is, payment direct to our own payroll,
was 9.93 cents per pound of copper. or
10 cents per pound in round figures.
the labor Of the Anaconda company
got 10 cents for every pound OF copper
that we produced.
"The freight and refining expense is
approximately 2La cents, so that near
ly all of the whole 1914 cents that we
received for a pound of copper was
given to you and the railroads, and the
larger part Of what was given to the
railroads. of course, is in turn given
by them to their employees, so that
when it comes to the core Of the apple
left by labor the Anaconda company,
gentlemen. under conditions such as
prevail now. does not get very much
there is not very much core left. In
addition, we not only have to get
enough money to pay You and the rail-
roads. but we had to find somewhere
money for supplies. the coal, the coke.
the timber. the powder, the steel. the
hundred and one other supplies that
90 into the making of copper. Now
you are intelligent men. / don't care
what the propaganda Of the /. w. w.
or the wobbly is. or what your views
about the capitalistic system may be-
but / do know that on the first of the
month the Anaconda company has to
nav it's bills, and I do know that it has
been difficult to find money enough
to pay them.
About Contracts.
II have given you that general sur
vey of the actual industrial situation
not theoretical one; these are facts.
and / think we are trying to do as well
with this business as any one could do,
and this is the result that is obtained,
You may ask, What has this got to do
with the purpose of the conference!
Just this: You want to know whether
or not we will renew term contracts
with your organizations. That is the
question that you have asked me. |
say. No. not at this time. and tor It l
give you two reasons. The first is that
the conditions of the business are OF
such a character at this time that we
cannot do that any more than we could
do any other act that would not be
wise from business standpoint: we
don't know how long these conditions
are going to last; we don't know
it is going to be year. wheth-
er it Is going to be two years; we don't
know whether they are going to get
better in the next six months or a
year. or whether they are going to get
we are not prophets any moro
than YOU are prophets. We cannot |
tell. there is no business or industry |
in the United States that has been hit |
as hard as the metal mining business, |
because even after the armistice steel. |
lumber, cement and other basic indus |
tries had an enormous amount OF ousi-
ness at very high prices.
"I am amused sometimes when l |
hear the ingenious remarks OF people |
about the profiteering in copper dur.
ing the war; the price that copper sold |
FOR during the war was during the |
greater period only So per cent above |
The average pre-war price, and it was
he only basic commodity that sold at |
hat comparatively low figure Steel
vas 300 to 500 per cent higher: all |
he other basic materials sold at great
,r than 100 per cent, so that we have
been hit harder than anybody else in
business. The future OF our business
.oday is more uncertain because we |
rave no accumulation Of stock to be
disposed of. Under these conditions I
lon't think the term contract is advis-
,ble; | don't think it is expedient; I
lon't think it would be justifiable, and
We are not going to make one.
Company's Position.
''Now, there is further question
hat answers question number one:
What is your position with reference
% the labor organisation?' You are
Interested in that and you want to
.now what it is, and want to tell it
o you just as frankly and as candidly
is I can. When the notice was served
erminat ting the contrasts it was essen
ial that the contract be terminated be-
.ansc there was no authority anywhere