Document Gmn1pOKqLx9mGaX5D1MG85pLv

dBft'h-a' ittifta rj>'Iui, AinamMirtftWbA i LEAD INDUSTRIES ASSOCIATION 4M UPuwarow avenue mc w t o o k tr. m. v. 8CT Mt PraLXCATJOl b c *?x e j ^_c ; t o e d o csTJx^izxD }axn irorarnn* V. C. X| Oeneral Uanagor of Westers Operation# V. 5, Suiting Refining tad lfl.nlng Co* Zoo* The problems feeing ths Aootetlo lead nltdns industry oas^ X believe, bo r-ruod <9 under two heading; neaely, (X) the problaa of " 1 rising direct, and Indirect unit production ooets which hsve not boso coepcnsated by increased revenues and prevailing condition* CD the other aide of t.w balance sheet, and (2) Inports, whose ooets ef pro duction aro .'nr below deoeitlc costs. lan-oocponsatiiA; iteos an tba other cldc af the balance sheet whleh have not offset rising unit product lan coat* are sheen belswi A. General decrease of approxioately 3? to 35? be* lor the 1930-39 period la ecnhlnod H>Cn aeeay grades of doeeatic ores presently wined, B. Decreased or relatively stationary wit out* jart/ean shift ca has beee experienced in Ftah sines, and ether Western Ttatea in general. C. lacb <f incentive to search for and develop net ore deposits, principally because of present tax regulations* D. Uetel prloee ssteblislwd by free international aeriestL X. public apathy to the Importance of aalntsjning a sound denestio artel art nine industry* Xs general, it ooats teioe aa auch today in Western aiming dl*trlcta to jroduee 1*00 in groaa value of ooobined lead and tine aa it did Airing the period 1930-1939. (Aastning no change In output of oro tons per nan a-lft), Decreased eaablnod laad-aine assay grade of ore coupled with tripled production ooeta over the period 1930-1939 have not been proportionately offset by the prwj-nt 1335 increase in esa* binod lead-cine astal pries over the average ooabined 1930-1939 aotsl price. (8.99# per lb, oonbined ft and Za)* Presented at the ?2nd Annual fleeting lead Industries Association* Apr, 13-Ht, 1950, Chicago, HI,, at the Panel Jiscussion of lead rroduoora. j s w w "i*w . u il m- j u w ^w^esyce^Hjpwswei1,' " ' A'.,'-4!f^'iLj8^waag|JiwisLg.Aiejii ruaaepuuwj taim ii LU16225 jiksm mit irtf'n 'J'tuwinVii ii t iV' t 4. \ ..... On in averagw# proeorrt domestic ndno production cost per pomad-------------------- i of lead* after t a ling Into account credit* from other associated metals, i* probably between 9 and 10 cent*. Bcccuso Of tho great disparity tatnoon foreign and domestic libonr e oeta, the coat of production per pound of foreign lead (f.o.b, domestic porta) 1* probably In the | neighborhood of free 5 to 6 eer.t*, and boeaueo of devalued currency tho foreign producer receive* tha equivalent of frcn yy% to \Q% k o t o for : la load above the curront amrket price, aa you all reallie only too wall. Such c acpctltion ha* reaultod In, and will further hasten, the rapid abutting dewn of a large number of our doaoatlo lead predacare, Ultimately, however, the prlca will react agelnat the eon*\zxr a* In the abacaco of substantial domestic production, tho foreign producer eta ralac the price alaoat at will. The wiaw certainly doc* not want to pay 20p to 2$4 for '1# lard, nor la It the domestic producer'a dealr* to force the lead prlca to tula laral. Td<-, the najer ltens of direct production coeto art tho** of votal labor and a-,.,.!!-# for <v-ruio end wainienenoo. Cuaulevlve ........ result* of three Increased coeto and deoreaeed or relatively statlot- - ary unit output per nan ald.lt coupled with the lower aasay grad** of ore aired have, as pointed out aborts, placed our derratic load mining Industry In a critical position. Ltechanlxation has boor, extensively resorted to In an honett attempt to maintain unit output, but there la a practical Unit beyond which the Individual operation earn not pro ceed. T l* all moans that labor, both f roa the group and Individual standpoint must continue aarrmstly to scab ways and sane of Inereas- log unit output. Such an effort la aasentlal on thdr part If they are to asintaln t .eir present living standards through a ssuring coo> tXjcity of the Industry, lUnageaant must accept Its share of tho res ponsibility In this endeavor to lncrtaee unit output through flexible , Uty of thlriing and operating method*. In aitempting to attain IMS increased unit output per sen shift, lsbor and management (of which euperrlson are definitely a part) sust cooperate for actual aurrlvel > and progress. Whether manayeocct** relatione with labor and other pereemel (and vloo versa) arc sound or unsound will affect coots and efficiency * directly and indirectly, -bet two-way relatione and cassunicatlon bm- ccae coordinated and continue to bo actively end intelligently atreseed by both aides, I belirre that tho aoet important phase of providing basie requisites for controlling and reducing ooshs has boon established. I have aade a point of streeaing that supervisors are an Integral part of I Management, as they are directly responsible for oontrol of labor ard eu^ly costs. The ecococlo education of supervisory persorrtal, who are in the best poeitloc to pesa this Information on to the day** pay em ployees, plays an Important overall part la cost reduction. Increase* In supply costs In sost Industrie* are passed on to and have to be acoeptcd hr the consumerj whereas, lncreree# la the eoat of producing lead car. not be passed on la a similar fashion beoauao of our competition lr. the free International markets for tho tale of thee# aetda. Intelligent plan, leg in the uae of operating and maintenance supplies In w :lnes ctrctitutas a eoet reduction avsnme for the co operative efforts of both labor and management. Usntlce should also be mad* of taxes as being no small contribut ing oaust of higher production coot*. The enmpl* of taxes paid by the baee natal mining Industry In Utah trill serve, I think, to point out tbs * i lieu iii.j w . ...i 4jpirn w.re iwmsiJm mm mm mm Omri 0 LIA16226 . L lliJUJJlUJ!.(|JIW.Ij9(P wgsgaasjBB tuammsmsmuBf" \ t iiTrtiiiwMSi.it li Iflfj'ii i afc&tMVm -ja^ifriiUfo ftlft'V -3** general air* taxation trisndp elsewhere, A rtud/ of the baa# a*tal nixing industry in Utah o#Torlng the past tan years disclosed that the industry paid eut 20' Bare for govcrmext than- itdid for labor ir. that period. (320k,600,000 for all taxes vs )16?,3?C,000 for ri labor). In 1?}? the tax burden tu U.3% of the bee* wotal cintnf lrdustryts cross Incxas, In ten years it has riaen to oear 2flJ (20.7') of the groes incase. The baae eetal nixing Industry aa a good citieen wants to bear lte fair and equitable share of the ooat of govemaent. To arc, howe/er, unalterably oppoeed to bearing a i disproportionate portion when coegjered with other industries whoa* iraaerioal and political lsflnaaee outweigh* our own. " feel certain that hidden ore deposit* exist which nay be of such physical nature and assay grades to offset the present and prob ably cactum)ing high production costs provided an Incentive la given through federal t ax revision to look for and develop those deposits. The governedit. the nubile In aenwreT. and labor in nertloular have everything to gain through eaoourmglng the exploration for and the dn velopoer.t end operation of existing and undlecovered ora depcelta by private enterprise. Labor profit* through the new Jobs created and through the preservation of easting Jobs at present ratea of earning*. The general public galna through the Interrelated lrduatrloa atwn lng free clrdng rMch create new Job* and provide new wealth. Ooransoant la assured of a steady, sound daestle souroe of atrateglo netals and additional tax revonuea through paproUa and earnings ocf new and elA wising endeavors. t - '.s- ?> It>1iri'rtl'i-111WskaUsiMWwjilB^ To marlaa this paper the problea of the daneatlo lead and other base octal nixing industries la one of rising exit coats, the artcod decline of assay grades o f ore, decreased or relatively station - ary unit output per nan eul/t, the absence of th Incentive necessary to stlxulate the search for and developocnt of now clneral deposits, and presort excessive i*ports of leed through circ-astcr.ces bcycod the Industry's control, aa such. Tha fundamental long tern solution to the probles, I believe, la a substantial Increase of unit output par mm shift and Federal tax revision to provida tha necessary incentive f private enterprise to search for and develop new base netal deposits. Regarding the inport problaa, I feel that there are other aaobers present who are aore qualified to discuss this natter. Tha following s tatisties show the Inoreaaa In prosant costs over tha period 1930-193? to yroduoo $1.00 of gross value of load and sin* trow a ton of dowostioally alned eret Cawblned Tto-Zn ivcrsigw Crtpat Oroes Total ?ro- Assay orado ft>-2n Cooblned Tons $ Talus duotlew Period Per Ton Ore Uotal Prioe Hary/Shlft Ton Cost/fca t." PESLHT 1.00 0.65 x 1.00# x 1,00 w 1.00 * *.33 * 1.00#* w 1.52 1930-1?391 every groes dollar of output per sun shift post z Jx s ^dnllyrs^ - HESZETi Every gross dollar of output par ain alift oowt 3X 8X dollar* 332 to produce a.w -- Assessing no ohangw in output of ton* per wan shift s f