Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-02-22

lloaF HE. OBOEUOHs
With reference to an article ap
entitled Government is Greatest E
s. Bureaus.
AS you konw, the Mining Asso-
cation of Montana has taken a lead
ing part in the endeavor to enlist
government aid to mines through
the RFC; FERA; WPA, etc, COW
ering loans to mines and the con-
struction Of roads. We have also
interested ourselves in the activities
of the SEC, and State agencies
financing. On behalf of the Min
ing Association, / beg to offer the
following comments on the above
article.
. In the first place. 1t is regret
able that such a clear and vivid
presentation of the plight OF a
struggling mine operator Cor per-
maps would-be opeTator) to get
financial backing for his property
IS not signed with the authors
name 1t hardly seems unnecessary /
for him to parade under a mask of
anonymity Those of the mining
fraternity who have attended the
meetings of the Mining AssOcia-
ton. during the past three years, |
know by this time that the sever |
est critics of RFC procedure in re-
gard to mining loans are to be
found among our own membership |
and Officers of the Association. 1t |
was your own suggestion that Of
ficials of the Bureau of Mines and |
RFC be asked to send representa-
tiyes to our Great Falls meeting /
held in June of last year TO adj
dress the Association as to attitude
of their departments, and we are
happy to state that the request /
made at the Great Falls meeting to
appoint a resident mining engineer
was accepted. From personal con-
tact with the appointee, MIR Au
gust Grunert, since he has begun
his work leads us to believe that
some Of the stringent regulations d,
of the department will be material
ly modified
At the November meeting OF the
Mining Association, we were pleas
ed TO entertain Mr.. Robert O'Brien,
of the Registration Div
who gave us a very
account of the activities
Of the SEC, in so far as they per-
tain to the mining industry A copy {
of his address is enclosed here S
with. We were all impressed in
the sincerity and earnestness of 1
this young man and we hope that t
the personal contact we have es-
tablished with him and the depart '
ment which he represented even I
tually will result, in Strengthening b
out some of the difficulties under t
which the financing of mines is
now experiencing with these Nat e
ional bodies. a
1t is, therefore, clear that the |,
Mining Association is making strong
efforts to solve the difficult prob I;
lens connected with the financing D
of mines about which your anony- II
nous correspondent so vigorously W
and humorously expressed himself t.
Turning to his article. it is adj
mitted that the Federal agencies o.
ibove referred to are inadequate to o.
give any real solution to the acute 9
problems in developing the vast =
mineral resources of our Treas u
Ire State" believe it is the con- q
census of opinion of the Associa- v, w
ion that government financing of II
mines is limited to certain favor
Gble situations where the minimum
If risk is involved. On the other
rand. the statement made by your
imid correspondent that the gov
.rnment is an enemy of mining be-
ause of their limitation or methods
# administrator, is foolish and III
harmful to the mining industry. % %
1t IS wide of the mark to assert cl
hat failure on the part of a mine 81
perator to obtain a government n,
oan in any way reflects on the az
gorth of his mine. Turning the ar q
ument around. If the mine has bl
alue, why is it necessary to apply CO
or a government loan? Amy such ?,
rgument is liIre the old ditty. II a,