Montana labor news., 1932-05-19
NEAR STARVATION:
CITY-STATE REVENUES
BEING DEPLETED

By JAMES WALDO FAwCETT.

By JAMES WALDO FAwcErT.
The senate finance committee recently decided that there should be a
tariff on imported foreign ingot copper. Subsequently. due ito a partisan
the legislation pending at the moment but this was a political reversal
and not a betrayal of their interest in a problem which is of the most
vital Importance to the people of IA western states.
Time vas when the copper mining industry of Arizona, Nevada, Colo
RADIO, New Mexico, California, Washington, Oregon, Idaho, Montana, Wy
oming' Utah. Michigan, Missouri and Tennessee was a prosperous enter
prise employing thousands of workers, paying millions in taxes and cn
tributing to the wealth Of thousands of investors. American copper dom
mated the world.
In recent years all this has changed. The governors of 70 of the states
listed have told President Hoover that: Copper mining in the United
States is in extreme distress. Billions of dollars invested in copper min
ing and dependent activities are threatened with total loss. Thousands
of mine workers have lost their means of making a living. They and
their dependents lack even the common comforts of life. Public health,
safety and welfare are menaced. Depression in the copper mining Sec
tons of this country is far lower than that generally resulting from the
current worldwide economic umbalance An impending calamity is upon
one of the nations basic industries.
Low Grade Deposits.
Competition of foreign copper is the aus of this distress. 1t
is impossible for American mine workers to compete with low wage
foreign labor. Living conditions in the United States "a not be on
the sal level with those o the primitive peoples of central Africa and
the west coast of South America.
Copper re deposits in the United States are comparatively low grade
and American mine owners and operators arr confronted with greater
mining difficulties than those encountered by their foreign competitors.
Transportation rates, materials, supplies, machinery and other equip
ment are far costier in this country than abroad. Producers of copper
in foreign lands have every advantage They "a sell their copper at
half the price of domestic copper and realize a greater profit.
"our copper mining industry now presents a dismal picture. Shafts
are closed, smelers cold, mills dormant. Towns and cities are being
depopulated Idle mine workers are swelling the ranks of the unem-
poyed. Business establishments are closing their doors. Public well
fare institutions are helpless. Conditions in many places are desperate,
and the stagnaton is spreading.
For years copper mining activities in the United States have pro
vided large markets for agricultural products, a IVY materials and manu-
features for the nation. They have created millions of tons of freight
traffic for railroads and other transportation systems. They have been
outlets for billions of board feet of timber and lumber, enormous guam
titles of machinery, tools, equipment, other materials and supplies, home
and office furnishings, wearing apparel, foodstuffs, automobiles and other
products.
Tax Receipts Reduced.
"Cutalment of copper mining has brought about the wipng out of
copper stock dividends, has seriously reduced the profits in related and
dependent industries, and seriously reduced the incomes of not only mine
workers but of thousands of workers in other industries.
"Taxes for towns, cities, counties and states, and revenue for the fed
erl government have been largely diminished by the inactive condition
of copper mining in the United States.
Cooper is an essential part o. almost all our machinery and munitions.
With the disappearance of copper mining in the United States, the de-
tense of the nation would be materially weakened. Once the copper mines
of the country are closed, our army, navy and air forces would be placed
at the mercy of foreign copper producers.
Enemy bockades would hamper or cut off these sources of copper
supplies Copper mines in the United States would then have to be
reopened. Mining machinery, mills, smeters and refnerhs would have
Months would pass before production would result Until that time, a
tional defense would be greatly weakened.
Mines Are Closed.
To-day the mines are either closed OF being operated on a greatly cur
basis and at a tremendous loss. The selling price of copper is
the cost of production. Where mines are still being operated
the worknen are employed only oe or two days a week.
"The nus of the present crisis in the copper industry is the rise in
foreign production, the basic change which has taken place in the world
copper trade in the last three or four years. The discovery and develop
of large, highgrade ore deposits in Africa, Canada and South
America have changed the situation in the most radical way In the
Belgian Congo and Northern Rhodesa, pre- with al average of 6 per
copper is being extracted at costs so low as to make competition
hopeless or the part of American producers. In Canada, the most i'm
portant development is the huge Frood body of copperncke ora in the
Sudbury section, Ontario. Immense deposits Of high grade ore have been
developed in recent years in Chile. Foreign oe reserves, which will be
steadily increased by further additions in Africa, are o sufficient to
supply 20 years of world demand at the peak rate to date.
IF the mines are operated in the normal fashion, the United States has
copper ore reserves to supply all ordinary demands for an in
period. But these reserves are of al average grade substantially
than the grade of ores of most competing countries. The average
copper content of domestic ores in recent years has been only about l6
(Ccntinued on page four)