Document rBzpbdLg09KDv7dQX8wknDMZG

ri* e i. i'jg iBir' a m suMmwHwm w migeuuM ff' ruie iup - w - a r mmm vmrnmm m mmrnmsmw. LIA16A47 m .%..i.r-mifi -`-t-rniS- Ti- n -i*'n>frfi -A rtnrr--iti~ i 1 T --------T-" i 1 . LEAD INDUSTRIES ASSOCIATION------- ---- !Q 4S0 UDUNOTOM IVMIt MSW 1MK 17. H. *, WO PKyxrPH - StSTEHR STATES* mica P. tnMjF| Manager Utah Mining Association Tha rt*tenant see aade In response to three question* presented for dlteuoeian* Tba questions apa quoted belowt To what extent will tba currant combined wttal pilot ef - 2tci# par lb. affect lead and sino production is poor araaf r What, If enp, reduction in O.S.A. alna production t'emage of ] ad in 1952 in pour araa naa dua aolap to tha drop in tba prloa of pig laadt Do you believe that a continuation of tha praaant level of load, that ia to raj 13-144. over 1953 will raault la a aarioua drop 1a laad production la pour areal If so, aban ia pour opinion will a rubttantial curtailamt ia laad baewaa apparent? Question 1 - Tha general but frank atatanaot that continuation of 24)4 com bined ieed-tine price, for anp extended period, would kill off tba aajor portion of waatarn leadline production ia, I baliara, agreed to bp western nine operetore. Tha Utah Mining Association estimated In Decaeber 1952, that laad and zinc pr<^ duetlon in 19S3 in thselsven western States, would be down to 2/3rda of 1952 pro duct*. :r. if tha than 13p4 laad, 12)4 sine prlcta continued through 1953. looking at tha picture new - at prerent prlcea - tha drop in production could be wore than vaa than aatlnated. To data ainet haring a high proportion of tine with low allrer rmluaa hare bean hardest hit. k good exaspls Is Sew Mexico which baa cnlp on# producing tine-lead ops ration running today - with a currant production rata of less than SI of 1952. Reaction to data in tarwa of wines cloning because of prices has bean spottp and percentage wise in terns of laad prediction not too great, k large number of smaller properties, however, hare closed down, being the eoet rensltlra to reduced prices, through haring had low financial reserves and being narglnal costwlaa before tha price dropa. ftmsMon 2 - Percentage**!**, 1952 laad production deeroase dua to falling prlnaa was very aaall and until sows recant curtailments, tha major operating wines bar* continued norms! rata of production in tha hope that soma prloa adjustment would forestall closure. ' ePresented at tha 25th Annual Meeting of tha lead Industries Association April 9-10, 1953, White Sulphur Springe, V, fa. -1AJW^jlUUIIBMjypwJijjjyL^^=u^^-lUd^WffJB. iw ii w !BiuiigHa iM. 'Aei iw'.niinji;i:i|i>. uji jmini''w ^i ijem^y^gwim w w r W J H W P J l>j p WW<|il[Wl>i..aiW'il|l)ki<iipH mt mmm r f |M|M|iip B n pni|piWWJM" W 'tun m m -i t up Iiyi Blimp yipgi-- Li .% - Uad Production - Western State# *t - XUn t. Romney Question 3 - To <"* or* r**nr* for profit* 1*m than nesded t* -- 1. Pey op*ratio* coat*. 2. Reoover Invested oapltel. 3. Develop replacement reserves. 1*. Finance exploration for new rlnaa. 5. 01v* ic m mum to stockholder* la Similar to ^a aerchant holding a bankruptcy sal* in order to liquidate tha stock and go out rf business. few western leed-alnc mints ar* no* op*r*tin* at *ny profit end I think It aaf* to tay that nen* ar* realising th* above outlined "needed* profit*. Tb* op* rotors ar* rapidly approaching th* hour of decision aa to ho* loo* they can contlnu* to sustain lossea and deplete or* reserves. That, howaver, la tha individual operatcr's problea and on* which I would not presume to try and anseer for hi*. However, th*y have (an* on no* for fir* or six sooth* within* lo***a against th* dread*d condition* of shutdown, 1,*., high sin* aaintwnanco coeta, loaa of worldng crews and staff an, and probable loss of or* r*s*nr* through falling 9 tlnbar, caving ground, wte. Many har* r**ort*d to^iigh grading* to postpone tha decision. Th* prle* depression premia** to b* of loog duration considering the abundano* of *fr* world* lad and tine r*s*nr* and th* ability and willingness of foreign l*ad and lino produoer* to undersell our market. It could b* t*ndnat*d through pasaag* of th* present proposed Sliding Seal* Stabilisation Import Tax legislation or through th* abort sighted alternative of permitting th* wrecking ef a rufflclent portion of ocr domestic productim to allow foreign producers to raise prices aa dependency* upon then permit*. On* point before I ales*. Tb* are rag* prlc* for lead - 191*6 to 1952 inclusive, was 15.1*8#, a prlc* sufficient to sustain doeestlo mining. Tb* price rang*, however, ov*r this period was 6.5# to 21.5#. Prlc* was well b*lcrw th* above average from March 191*9 to S*ptcrt>r 1950, and dropped below th* average again In September 1952. Very tow min**, particularly th* small ones from which the larg* cams grow, can contlnu* to aperat* through an *xtnd*d no profit period. Each cycle of depreeeed prices takaa it* toll In reduction of actual and potential lead-tine production! in discouraging development, exploration and plant Investment. Each one draws tha noose a llttla tighter around tha neck of domestic mining. The buyer of metals, has over th* yaan, paid an average prloe adequate to keep tha Industry alive, but th* feast or famine marketing process alor^ the way has occasioned many casualties. All that western leed-clae mining asks ar* means to 9 stabilise prices at near th* average levels which buyer* In th* poet six years have indicated a willingness to pay. I* in tha western State* can then continue to pro* duo* acme 60$ of tb* nation1* laad and tino "new mine' production. L JAl ... J lilP.