Document pm52xLyxXx0G7abDERk7g3MVB

4 -...... *- - LIA16390 ytf) HKCPCTIOg - BmiWWTW 8TATBf . Or U J< Randall, freeldeot Boole Minin* C cepany Vallaoe, Idaho Fniwtri April lH95* hfr th lud IndortrlM Irak* Betol Chicago, Illinolo t' ` , ` 1951 production of Iced la tho Bcrthmet atetee, that la Idaho, r-Maw. rrf VaehlnAtcn, of appreslaeUly 105,000 tone oaa JOB lota thaa tho 1993 prodeetiao* B--rer, la op opinion thia dooliaa la prodaotioa net bo laUrprotod ao ooe--arlly indicating a dooliaa la futon predoctlco. 19S0 *m a Tow la which aa as--ally large quantity of load ao prodoeod la thaoa atatoo. la fact, 1951 prod,atlea of load la tho Borthoort atatoo amnaailail the orange pro, AwUoa far tho flee 70are prior to 1950 tgr oppraalaauly 105. Uap newer10* m nano Load prodaotioa la Idaho, vhlah emote to alaoot TIB of the total Borthooat! i prodaotioa, uua doonaood aa a roaalt of a ahartaa of olaon lm the Omo d'Alaoo Blatrlat dorla* tho aaaor aootha and a atrike ehotdon ohloh aotoadod fra Aa*aot tnatp aaiaath to Soptahbor amnth. . CnOUTIOB AW? gmXOPMBBr m3TTZD It la ala a qalto evident that operaton aophaalaad oxploratlaa and donlapoaal dorla* 1951 which had tha affeet of daonaala* tho oaohar of am available for oatoal prodaotioa of netals* Darla* tho oar 70an aa all^oot effort vaa oada ty tha Indoetry at tha nqooot of govermeat to prodaeo aatala la aoil aai quantities * 00 vitally noodad for tho oar effort* A ehertagi af labor dorla* that period vhlah toatiaeed ttrootft tho yoora follovln* tha oar, together with o depreeeed oatal aortal begimin* la March of 1919 and extending to fuao af 1950 aode It laqwooiblai far aaeqr oporatere to oatch op aa dmlopaaat and explaratioa oerk nqrtrod to replace the Iomega preVioealy aiaad at aa accelerated rata* A eaahor of adoe j ^ aponton la tha arthooat rot reaogrtaed that daralcyant. ad axplcretloa oU : not ha poatpanad oaah laager. Oeaoaqaoatly 1951 ehoood a oartwd lam-- la | e--aAltoree oada far that paip-- A aIron* d--ad hr h-- aatala durla* 1951, togithar olth laaraiaod prlaao, 1 --oaragod aid and -- aineo to oxpood aatlvltlao. A a--or of preport!e* that hare booa Idle for yuan noaood operatl--* The Data-- JOaorala Ad--iatrmtloo ! aad lte ooooaaaar, tha Dafo-- Mamie iglantla Ada!id at rating, apprarod a -... ; it iiih i iii* 11,II ill IPWlffflfP WMWWW PMMaiWgliWBj'lil!iWIHll|lll>.llliJ^I niqf1 w ^ -tm total of touty-aaran alnaral aaplontlon projacta Id Idaho alano, tod atarjj 550 alaorola location win illad la Shot hoot Ccwntjr daring tha put yaar Tor pmpottt tf thla diaeoaalon tho largo? load production trttt of tho Barth i onnt trt dlrldod Urto atatloot tempi'llInf northern Idaho, tooth Idaho, j and Montana, and Z olll ccomant briofly oo tho prlaolpoZ prodmtra within took aoatlaa, ! pamrow imno forkor Hill and 8all 1 t o o Mlnlnt and Concantrattng CcnTT ; | Tba anomai rtpert of Bnnkar BUZ tad SalUrma Mining and Ocoeontrotlig f~p--^ mraala that 1951 load promotion at tha load analtar tram production tad J anatom oral porohaaod and tram aloe proeaaaad la tba (Wat plant, int.in^ 5k, 0 toot, oaa approximately 2QS lata than la 1950, althoa^i IQS craatar *.-- in X9fa9, j 1951 load prodaetloa from tha Basfctr Bill adaa of 23,17k tona aao ogpmslmatoiy W andor 1950, yat *9# inaUr than for tha flna-yoar podod pracadlag 1950, I Laadotiao ora raaarrao, axclnding cart alaa oparatloo, ora 1,00,000 tow la amoaao | of what thay vara tan yoara 140, la apdta of tha That that aaarly 3,000,000 j of on ban boon ainad by Bonkar BUZ during that parlod, Drlfta and arootout! ecntlm# to fin aatit factory raaulta, and It la W^ ohrlna that Bunkar BUZ la donloptas on Aram yoar to yaar to goptmitt far toonogoa alaad, Tba aaporlaant la bloek oarlag of loo grada an la qaartclto la gUlag aaUa> faotory naolta rlth ladlaatlooa of ahbataatlal additional tccnaga of lao grada ora frm thla aocno* ytdanl Bluing and Soaltlna Cowanr Tba aomal rnport of Padoral Bluing and Saaltlng Ccagorg aapbaaliaa that pao daetloo at tho Paga and Prlaoo Waoa daring tho part yoar ana loan aa a noalt of a ahortaga of alaan oat tha atrlte atmtdowa, 0,069 taao of load aaro prodaaad from tha Page Wna, aad 1,645 tana ara prodaood from tho Prlaoa adaa. On raoama of thaaa praportloa oan approKlaaUly tho aama aa tho aotimato at tha and of 19SD. Prodaotloo la tha Boning dm of k,QTh tona of load oaa aanmOnd Zaoo thorn la 1950, Hooawtr, aao aro la balag addod to tho noonoo aa a naalt af finding that tha width af tha Haradag tola aa lowar ZaoaZa oaa graotor than had baoa prarlowaly axpoctad. It M alao rapartad that Moral aad Par Hlaaa, Zaa* haao aada aa agnnaa* LI 416392 -3- te explore tha wt Xndtpandaoca ground lying "*t of tho Horainf adne throogh underground working* of Um lattor, An framant u olao mada for daralopmot tad aoplonatloa of Vhllaoo Mining Compaq propartiaa nMoh adjoin tha Prison hnldij*a. Sxtlllrtn Mining Co t ary Tho 3*111ran KinInf Coapaiy, ownad jointly by Bool* and Bonfcar ffin, vtiila ) primarily a aiae oparation, nornrthalaaa produced 7,7SO ton* of load la 1951. o n i roaorvao at tha aad of tha yaar raflaotod a farorubla laornaoa ortr tha prior ymr*j MU ara at praaant drfTing an 0500-ft* tamal fro* tha Baola plwt at Burtua to ji Intaraaot tha Star ahaft on tha MOO-ft. lrral. Vhao eoaplatad, eparatliy eaoto 1 ill ba daeraaaad, tharaby haring tha affect of addict eecaldnrablo y of 1 P prasantly martinal ora to our raaarraa, Wo art alao axtaadiag nor ahaft to loaar 1 Irrala of tha mlDa, tha praaant lomet lrral bainf tha 5100-fto laral. 8*111aan la carryint on a drralopaant projaet la northoaatara WMhlnttnm la [ . tha Hatallaa Contaot iraa ohloh aa axplomd throoth dlmond drlUlac durii* tho nr by tha 0. S. Buraau of Kinaa, Partial derelepaaot of thla araa baa opaaad a j substantial qaaatlty of or--relal alno-laad ora, although eentl--tlan of m work la naoaaaary before tho axtant of oio raaarroo oea bo datondaodU Pay Kin-- Inc. l<aad output ty Day Kloaa, Too, of 6,834 tono during 1951 mo 31| under 1950 oo o moult of o daellna in production of tho Sharman mina, although tha oonptay Iliad about tha earn total tonnage dorlag 1951 ao daring tha praoadlnf yaar* i i j Total or* reeerrae at tha and of 1951 doellnod approximately 105* Bavrrar, thia I i ^ company haa aaharkad qpon a vary mhttloaa exploration aad daralepaant progym that! oartalnly ahoald load to aao dlaoorarlaa. Mora thma t.t mllaa af drlfta aad eroaa- ; oota alaoa mra drlraa loot yaar aad abaft# at too praoaatly eparatlng prqpartiaa | ara being oatoadod to aao larala. Tha ooapany haa althar acquired or seamed laeaao on a aaahor of attrootlm propartlaa within tho Cooar d'Alaoa aad Matallno dirtrlota, I aad actira exploration la noo bainf aarrlad aa la otraral of tbaoo properties. A i major portion of lto earning* la bainf plowed book althar Into tha daralopaant of i praaantly oporotlnf propartlaa or la balaf aapandad la tho aaarob for am deposits, Callahan Ilno-Load Company i Tho daralopaant <f tha Taloaa proparty of tho Callahon lino Load Canary j balaf undertakes by AShI and Day Klaao, Xnc, appooro to bo flrlnf satisfactory tanlti, While tha ahaft la laaatad la tha an aallad allrar belt. l .'iij.uf mm ii LIA16393 k 1 lMd abarfnga here been dlaeleeed fren llxltad proepeeUng tbaa far. a larva holed haa been laatallad aad ewrfaee bulldlnga era being eomtrwtad with axpeetctlcaa s af aa lntenelwe derelqpaent progf daring tba balm# af 1952. Beale HInIni Cw>ry J Tba Beela Klning Ccapup, through eqoal participation with Ned MM* C^Poratlan and Tba Iw Jaraoy line Cwptfgi baa anterad late aa agraaaaat to deralop tba alaaral propertiae of Atlae Nlnlag Ceapaiy, Oonetractleo of the nr- faea plant baa bean collated. ear dmlopaaat pr^rm laeladaa ainkiag af tba preeeot 80O.ft. abaft ta the &00 lovely aad afpimUetely 2000 faet af driftli* and eroaaeatUng aa that laral. tfa aapaat toitart aInking althla tba next thirty j dayn. Raela Klning Ccapony, Bewnoot malng Corporntloa ai* The law Jmij C^panf will partlalpata equally la tha flaaaalag of thin prejeet. goeotur, jtlae , will retain a 25V lntaraat la production fraa the property aad tb, i --1 mug jyf lntaraat will ba aharad equally by the thane finning eopenlae* Lacky frlday Sllter-laad Ulnae Coapaar , Thla ocapaty with preparty near Milan, Idaho, la dmelopli* a eery lntaraating ailiwr-lead vain. Aa era abaot 620 fbat la laogth waa raaootly opened aa the 2000-ft. latal aad era U still piueeat la bath faaaa* Tba nine la predialrg dmt 120 toaa af are par day, aaaiylag 16 ee af alitor, lOf lead aad If alee. Dm abaft will ba deepened aa addltleaal 200 faet thla year* gunahlne Klning CoapaTf ] i i Sanahina Malng Coapatqr, generally known far lta ailwar prodaatlane produoad < h,228 taea af lied la 1951. Mach af the lead prodaetiea la tram UAa aad hetbart ' i aroaa Area which apprcaiaately $05 af Sanehlne'e 1951 tatal are prodaetiea waa j denied* Urn Creak piatrlot | I t Production froa tha Mae Creak dlatrlat la prlMrlly Mm, although awbetaattal qaantltlea af lead are also being tocoterod by aawaral rf thaaa cayawlea operating; la thla dlatrlat, lneledlng tha Kebab8iltor-Ued Ooapany, frrada-Stewart IttcAng j Ccapeny, Sidney Mnlng Coupear, Spnkana Tilaha Kinlag Oeagany, heart Maerala, lea., aad Meant Mnea, laa, gOPlOTW PAW | Tba Trlag* Maa at galley, Idaho, with a pradaaUan af JAJt taaa af lead la 19$1, baa eonetrneted a now alii ta raplaaa tha pUd baraad 4em a aewpla af j yean ago. Tba Idaho OmUr haa taken aver tha aid Utlagrteo Maa near Chall la | t 1} * ppwgwgpiiwHIP 'gup 11 LIAl63 94 ad 1* now treating mbatantlal qwantitiai of tailing* and tap ra from tMa { proparty, /n i|piulK taltpMl pwpw n tha proparty ha* bam ootlinad far j 195?. tha Clayton Sllrar Maaa at ChaUla, la additlam to maintaining ataady pro- { doetlop of lead**lm are, la at proaont deepening lta abaft* Tha fayauoter Nlnae, > Im.( a mbaldiary of tha Spofcana-Idaho Mining Company* la aetlTaly aaploring ltm j preparty noar iroo* i WlSHPCTOf hand Qrailla Mata and fetala Coapary at Natalia# fall*, Washington, j primarily a also op*ratIon, aswartheleae produced 2,900 too# of load In 1951* Boaarar, prodaetlom aaa earlouely haaperad by a ahortaga of wndargrotad labor daring tbo aamaer month* and lata fall* Tha alumioa haa improved rwoaotly, md ; la Wmury and March of thla yaar aaarly 55,000 tana af timfr>la*d or* atm treated aaob month at thla preparty* Thla company bam a present -<iHig capacity of 1,100 tom per day. Construction of am additional SOO-toe nit to lneraoao tho mill oapaelty to 2,200 tom par day la axpaotod to ba aomplatad and lm oparattan ' within tha next thraa aontha* Tha Roaraa-MaeDonald Kinaa, Ltd., with propartlaa loeatod Joat omr tha border line in Canada la aantrollad ty Pond Orallla. Thla ompany la prodmolng an a m**e of 25,000 ton* of tlno-load ore per aecth. 3,020 tom of load worn prodmcad la j 1951 a* compared to 1,910 ton* la 1950* j Tha Aaaarloon Zlno-Laad Company la aotlmly angapad la operation* la th* j 'raadrlow Rina la tha Natalia* area. ASM, through participation with fbdoral j Mining and Smelting Cmpaiy, la oomtmctlng a new 1000-ton mill at tha rooaatly j aoqoired Tan Stoma proporty. Anmoenda Oeppor Mining Coapaay la aoatlnalng lta | exploration lm tha tonama adma and adjacent propartlaa. (Mdflalil Oooaalldated j la mining m Deep creek property and la tha iadnwoa mine* WOMTAWt Montana prodaoad approslaatoly 21,700 tom of laad la 1951 o* oomparwd to 19,100 tom in 1950, Tha laoraaoa la cmtpmt waa ta larpaly to tha laomoaa la tonaata of lmad-alac oiw and waato and dap material ml nail by Aamnowda Oappar j [ j Mining ComtRT from lta Bntto Bill prcportiao, which ooaprlaod approximately Tty ' of tho total owtpmt of tha atato. Tha rmaladar of tha land oama principally j1 from tho Klbo Barm mlmo In lmwlm and Clart comaty mad faofc Malt* NU* la late* t Coanty, both af wtdoh aro operatad by ASM eapmy. v. * . ' k i $ f l'V ! i I IT r f t t?-'. V kX 1 A 16395 CTWCUBTOW In conaluden, I an not at all peeildetlo ao to tho potential fotww sailsck on load production insofar ao tho northwest La concerned. Bowwver, 1ncraasad and toot of production without a ea^eneatlng prtoe increase would aaodoubtedly o a dooroaao In production and ora reserves. Uban w* apoak of coat of protection. It la rary fcvorUnt that wa Include radaral inocna tazaa. or incog t ax on Km FBccomo*1 | < Otr Sullivan Klnlna Copany, for example, shews a not profit before tana of i t nvnKimatt&j |lt,$60,000 and a netjmflt after Uau of only $2,110,000. TTt `Tinimairrt took approximately SLf of net earnlnge, and the oaepany retained only L(4, Qnder preeent tax ratae the retained earning* after taxes are lnauffledaot to prorldo t the capital needed to pay o roaaonablo return on investment, aal at tho mi <-- ' prorlda funda required for exploration and doaolopnent of new dapoalta to -- or lnoreaoo ora reserves. The praemt c<ud)laed aornal and surtax rata of gg, together with a tax of R$ on what la tomad 'o h m profits^ la abaclately law for the ninlnc Industry and 1 aopeotally burdanaona to ana corporations* Xn any cases, theft la na credit whataoocur for rrerege earnings and tho located i j ji capital credit, baaed on 12$ of tho first $$,000,000 of invested capital* la uowally an inadequate neasure of aornal profits* fortunately we bsew a relief provision iddeh exelodee froa meet profits tains an amount equal to one-third of tho flat lnoono for new ninlnc corporations which were not la operation daring the base period (19t6 to 19t9) Boeerar, la fly oplalon. Be relief provision oaa bo written into tho law that will prevent injustice! whloh often occur to a nlnlns epe ratios aa a result of this tax on so- called "excess profits*. Taxing accedes nuat ranaAer that a nine cpsratcr is extraetlnc a wasting | asset* Vben the last tea of are is Mined, there con bo no further protection trm ] { that particular depodt. Therefore, if a nlalng corporation is to perpetaato its j existence, a portion of tho profit after taxes trm each tea of ere aiaad trm aa operating alas swat bo set aside la a rasarvo or currently expended la exploration ! for new dnerel d^oclts to replaos the deposit bdng presently dnad. Ons ether point which should bo strssssd to tax authorities is that the wins profit to bo realised froa a partieular utneral deposit osanst ajceeed the total tons of on contained within that deposit (whathsr known or mason) Unas the ultimate profit is bo realised on each ton ninsda % ' iuinto#uw i.mnff n awwn^to LI M^9b - 7* Aa atated prerloaaly, noat nlnaa war# operated at an aeoalarated rat* of pro* (faction durir# the war year* and durin# the praaaot dafanae effort* Conacqrantly,- darta# thle period abnormal profit# wara realised* Roaawar, thaee tonerml profit* ara not neoeaaarlly 'txaaaa profit**, llluatrated # fellowai Ut aa aactn* that a aartala dapoalt contain# 100,000 tana of ora* Under praaant tax lan, wa alfht aaeapo assaaa profit# taxaa entirely if thli term#* i# load otar a naraal tao-year parlod, and on the other hand ha atojootod to a aotarv* tax penalty If aa adna the aana dapoalt oat la fire year*. ,. i Ooocraaa la bacladnc to rooocnlM that reriaicn rat be rad* in oar federal I *i tax Into la order to aneoaiac* exploration and arvelqpnent* Tha 19$l fttwonae hot 1 proridao for the axpenalaf of all developnant ooato after inannulcTlj aartcetahle ' are la dlaaotered. Tha act alao Ineladoa a protlaian that partita a taxpayer to dadaat exploration aoota ap to hat net awaadln# 175,000.00 is any one year* no limitation U applicable to tha taxpayer and not t* a dapoalt, yurthamore, after i tha taxpayer bao takan each a dadoation Ihr foar year# (which aaed not bo aanaaea I tlao yaara), no fartbar deduction ray bo taken* j i X an aartala that tha renewed aetlrlty In exploration and drvaloprast in ear area darlaf 19SI la at laaat partially attributable to tha abaao rerlaioan in # tax lane* Boaarar, I faal wary atroofly that tha Iran aboold bo further nndid to paredt a fall writeoff far dll ooata of exploration incurred ty tha taxpayer. Tha 97$,000*00 liadtatlan ahoald ha renewal* If thle rare dona, X an aonfidant that tha ninlaf lndaatry weald fulfill aar daaaatla and nilttaay aeadi far toe* natal# fbr na#r year* to eano* j J j -" s? a ? i I 4