The Waterbury Democrat., 1944-03-16

ob oA MdbHCo' ium project" summarizes the Tru. man report, "the committee fully realizes that what has been done is part of the past and, although vast sums of the taxpayers money have been wasted, no specific recov- cry can be constructively suggested nt this time"
 The record goes back to 1886 when Basic Refractories, Inc, headed by Howard Bells Jr. of Cleveland, O., leased deposits of brucite and mag nestle ores in Nevada. The magnes- ium deposits were held by sub- sidiary, Basic Ores, Inc, at a book value of $25 ,000. This was the egg. Later, DPC was to buy out the Els interests in these ore deposits for 60,000, on an appraisal of $i 800, 900.
 On July 10, i94i, the under sccre- tary of war recommended that an agreement be negotiated between the War Department, Defense Plant Corporation mad Basic Refractories for a project of Q capacity of ll2,- 000 900 pounds, to cost $63, ,820 ,633,"
 Tn the opinion of the commit- tee," says the Truman report, this was one of the most outrageous md unjustified contracts proposed In connection with the war program and represented a wholly unwar- ranted gift of government funds by Defense Plant Corporation to a newly organized corporation which had no financial resources and only the most meager experience and talent"
 WASTE, MISTAKES. WASTE
 How justified this comment may be is best Illustrated by the com- mittee's long and detailed report on the progress of construction, The plant site was chosen near Basic properties at Luning, New, 300 miles from the mines near Gabbs, Nev,, to which there waS no transporta- ton whatever. Ore had to be back hauled from the mines to ogden, Utah, thence to Luning-B50 miles nt 80 a ton.
 A 40-inch pipeline over the mountains to Lake Meade and two power transmission lines to Boulder Dame, estimated to cost $8,000, 900, actually cost over $l2,000,000,
 By l045, new power sources will have to be developed to supply the plants capacity requirements of l,600, 100000 kwh.
 There were numerous delays. Pro- duction of first metal was sched- uled for May, l942, but was not achieved till August 3i.
 There were minor extragances, such as 700 executives, 100 of whom drew over $5,000 year. Stenograh- CTS desks cost $95,
 The ore contained greater im- purities than estimated. Construc- ton and the mines at Gabbs, esti- mated to cost $3,000, GOO, actually cost $70O0,000.
 Highly inhammable peat used in the process had to be brought from British Columbia and stored in a $900,000 wooden warehouse which had to be abandoned because of fire risk
 so THEY CALLED FOR HELP
 Salt deposits, at first declared available, were found not to exist and new sources of supply had to be delevoped in Death Valley. Hous- ing was supposed to be developed by private capital. Such as were built, at a cost fo $3000 per unit, were of fiimsy construction which 1t is said will last only few years, and Defense Plant Corporation had to authorize expenditures of an ad- ditional $6,000,000 for facilities. Architects fees of $25,000 were paid for identical designs on 1000 de- mountable houses at $25 per house, and so on.
 The whole thing was so bad that in October 1922 a deal was made whereby DPC brought Anaconda Copper Mining Company to buy 52 1-2 per cent of Basic Hagnesium's interest for $75,000 to bring order out of the chaos. New management, construction of & pilot plant for much-needed research have result cd in saving of several millions of dollars. The plant got to capacity fNrO6urtinI1 rate last .TulV