Bisbee daily review., 1922-01-04
DOUGLAS SAYS
No PLANS FOR
OPENING MINE
Says High Freight and Taxes
Prevent Resuming Opera
tons in Verde Ex'

PRESCOTT. Jan. 3. I'VE have
made no plans for resuming opera
| tions at Jerome, and the date for a
reopening of the United Verde EXten-
sion mines is as vague and uncertain
now as it was last summer" said
James S. Douglas, president of the
! United Verde Extension Mining COM
pany, this morning. With Mrs. Doug
las he arrived in Prescott last night
on his way to jerome, leaving this af-
| ternoon for the mining camp. After
! a stay of two days at Jerome Douglas
will go to Los Angeles on business.
Our reopening is undetermined at
this time because not one of the
causes of the shutdown last spring
has been wholly removed, and some
of the chief ones have not been dis
turbed at ALL" Douglas continued. 81
recently was in Chicago to go over
with the Santa Fee railroad the matter
of excessive rates, but every conceS-
sion | desired from the road was de-
MED. The plan l had in mind of ship
ping to the Pacific coast and sending
bullion from there to eastern refiner-
les by water is out of the question
now, for the Santa Fee refused to make
lower rate to the coast because by
SO doing it might turn business to the
United States shipping board, which
certainly is in need of patronage.
Freight Is Obstacle
Freight on bullion, while an i'm
portant factor, is not the only obsta-
Gle; it adds to the cost Of the supplies
we must have, such as coal, oil, coke,
lumber and general supplies. In pres
ent circumstances a resumption at the
United Verde Extension would bring
no profit, and we cannot operate with
out realizing returns. The people of
Prescott can understand this when
they compare the cost of hauling coal
from Gallup with the rates that for
merly obtained.
"At Chicago | was juggled about
from department to department, and,
although / was there nearly two
weeks, it was plain to me before l
left that the railroad officials were
determined to do nothing. F. A.
Jones, former state corporation COM
missioner and traffic expert, and
Paul Armitage, New York attorney,
were with me, and nothing was left
undone in the effort to convince the
rail officials that the high freight
rates are Sitting the industry.
Douglas said most of his confer
ences at Chicago were with Vice Pres
ident Chambers, who, during the peri
cd of government operation of the
railroads, held a high position with
the federal railroad administration.
Doubts Reports
He said there probably would be a
rate reduction soon, but that it would
be too small to make copper produc
ing profitable, provided the rate cut
is made in accordance with present
aims of the roads. Although it has
been published in state newspapers
that a number of mines soon would
start up in the southwest within the
next few weeks, Douglas was inclined |
to doubt the truth of the published |,
statements. He said he did not be-
lieve any of the mines of the Phelps |
Dodge corporation would reopen on1
February 1, as rumored.
Since the closing of the Arizona |
copper mines last April, Douglas has |
made consistent endeavors to awaken |
the people of the state to a realiza-
ton of the drawbacks the ever-in-
creasing tax burden is to the indus
tries of Arizona, and, by affecting the
IL IDS OpplcSScu luS pSO-
pie of all classes. He has taken up
the freight question in the same way,
and says he expects to continue the
fight against the two paramount evils
He pointed out that toward the
close of last October there was still
on hand a visible surplus of copper
to the amount of S00,000,00O pounds,
which did not include the quantities
in the hands of those who had made
purchases prior to the time. 1.-THE
taxes and freight rates are obstacles
in the way of producing copper, and
big Ones" Douglas said, "but when
the mines do resume operations it
will have to be so that the world mar
ket is permanent.
THE United States must do it's
share in world reconstruction before
other countries are on their feet and
in a position to buy our copper, for
it must be remembered the bulk of
pre-war COPPER went abroad. The
European countries must procure
from the United States the sinews
with which to stabilize their finances
and they must be improved financial
ly before We can expect them to buy
steadily our copper or other products"