The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-01-19
FREIGHT RATES or !.
MUCH IMPORTANCE

Reduction of freight rates on ore
from the mines Of this state to the
smelters is urged, says the Reno
Gazette, in a letter written sever
al days ago by the states public
service commission to the traffic
managers of the Southern Pacific
Western Pacific and Los Angeles
and Salt Lake railroads, in which
the facts brought out at the ore
rate conference in November are
again called to the attention of the
railroads. The letter in part is as
follows:
"At the conference, the mine op-
orators Of Nevada pleaded for relief
from Nevada to Utah and California
in two particulars, viz: a modifica-
ton Of the present scale accord
ing to valuation and a reduction
from the present level of rates.
Regarding the graduation scale
according to valuation and the need
for change in this line, attention
is directed to notifications recent
ly made in the northwest territory
and from the northwest to the Utah
smelters. The scale has been SIM
plified and the maximum rate re-
duced, that is, the scale of rates
in force in that territory generally
have a minimum rate for all ore
of 500 valuation or over.
Numerous mine owners at the
conference showed clearly that
while they shipped ore and concen-
trates of high value, the return on
that ore or concentrates was very
small, or none at all; in other
words while the produce was val
liable intrinsically it was not prof
table to the miner, on account of
the high cost of mining, sorting or
concentrating and transportation.
The mine operators were unanimous
in their opinion that a substantial
modification of the scale along the
line followed in the northwest
would result in increased operations
of leasers and prospectors and con-
sequent increased inbound tonnage
to the mining camps Of Nevada. J.
c. Brumblay, of the United States
Smelling Company, gave striking
examples If the Improbable oper-
atoms Of high grade mines, or the
mines shipping high grade product
worth in some instances over $3.50
a ton. Figures from one mining
camp showed that it required 17.6
times as much labor to produce one
ton of high grade ore, to average
$50 per ton, as it did to produce
one ton of the low grade in a large
property in the same camp to av-
erage $3.50 a ton. Shelters treat
ore Of all valuations for the same
base rate. Leasers are no longer
on the graduated royalty basis. 1t
seems that some adjustment in the
gradual scale of freight rates must
increase the railroad tonnage and
revenues, and help build up the
mining industry in Nevada.
"From the statements of mine
operators present at the conference
it seems absolutely necessary for the
life Of the mining industry in Ne
vada that a substantial reduction
be made in the rate itself on all
ores and concentrates to the Calf
ornia and Utah shelters, with the
exception of low grade ores from
Phoebe to Utah, regarding which
there was no complaint. Operators
show that nearly every cost they
encountered was below the 1920
figures with the exception of trans
portation. Smelling rates were
shown to be in most cases on the
prewar basis and in one case at
least twenty-five per cent less than
prewar rates. Shelters are max
ing an effort to help the small
miner and prospector stay on the
job. Railroads in the northwest
have cooperated with the mines
and smelters in a number of in
stances reducing the level of the
rates and simplifying the graduated
scale. There is an assured market
for lead and silver; the lead mar
ket is considered fair and the sill
yer market good. The principal