California Mining Journal (PH 16-14)(April 1943) (36 pages)

TEN California Mining Journal, April, 1943 . WPB Nelson Considers ‘Easing Up’ on Strategic Mines Ee ASHINGTON, Mar. 16.—Donald M. Nelson was reported to be weighing a major policy decision, tied to wartime strategy, on whether to embark on long range expansion of copper, zinc and other non-ferrous metal mining. Listening to Western Argument Authoritative sources said the war production chairman is “carefully considering” arguments advanced by Western legislators and the Interior Department’s Bureau of Mines for expending manpower and machinery in the development of marginal mines and in exploratory work whose benefits, in terms of increased metal output, would not be felt until 1944 or 1945. Heretofore the WPB has frowned on mining expansion unless the effects in the form of more metal for guns and bullets could be felt in the first half of this year. Wanted Impact at Once This was in keeping with Nelson’s “construction cutback” policy of concentrating men and materials on things which would have an impact on the enemy at once. However, with the armed forces planning heavy inductions of men throughout this year in apparent anticipation of a prolonged conflict, some informed officials believe the development of basic mineral resources should be projected ahead. Granting that it takes 18 to 24 months to bring a new mine into production, these officials have said that a number of small Mines, because of highspeed exploitation, will be exhausted if the war lasts two years or longer. Earlier in the week Nelson and his executive vice-chairman, Charles E. Wilson, conferred with Senator McCarran, Democrat, of Nevada, on non-ferrous mining questions. McCarran told reporters “he is not satisfieq” with existing WPB machinery for handling mining problems. Exploratory Work One unquotable official said Nelson appeared to have been won over at least to the extent that he thought “a good deal of exploratory work in minerals should be done.” Serious strategic questions are involved. If a “heavy shooting war” is in the making, copper will be expended in great quantities. Another factor is the extent to which the steel shell casings now approved by the army proves successful in combat. COMMENT Evidently Mr. Donald Nelson and his “Big Shot” metal and mineral advisory board, who are bent on keeping all the metal manufacturing in the East, are beginning to be dented by our Western argument, At that, his statements, as appearing in the accompanying Washington dispatch, need a great deal of revision. The great uninformed would be led to believe by Mr. Nelson’s grudging admissions that the reason he has not granted priorities to many Western projects is that they contained “marginal” or low-grade ores. Perhaps he does not know that we have hundreds of massive iron deposits in the West running 50% to 10%, and some as high as 90%, while one informant tells us that ore is getting so scarce in the Lake region that it is necessary to mine ore as low as 18%. We have plenty ot high-grade manganese, chromite (in deposits that will run to 50,000,000 tons), antimony, asbestos, tungsten, tin, and more than 50 other minerals. ens Nelson talks about it taking 18 to 24 months for new operations to get on production. The large opertors can get going in half this time and smaller ones in much less. Nelson evidently figures on the manner in which his Washington “experts” move. The WPB director is trying to let us down with some “exploratory work. Harold Ickes has just got done telling Congress that Nelson is now refusing to take advantage of the exploratory work done by the U. S. Bureau of Mines, Ickes presented him with reports on 1,600 deposits in 31 different states, but Mister Nelson and his advisors simply ignored them. No sir, Mr. Nelson, all that we want is “Freedom of Production,” and you. and your advisory board are not giving it to us. The manpower question also is said to builk large in Nelson’s study, particularly in the question of developing and exploiting low-grade ore deposits. A worker in a marginal mine produces only a half, a third, or even a sixth as much as a miner working high-grade ores. INVESTORS’ NOTES R. G, Le Tourneau has bought the the National Aluminum Mfg, Co. in Ill, adding approximately 50,000 sq. plant space, National Lead Co. reported 1942 net Profit of $4,246,370 or 72c per sh. against $5,375,695 or $1.10 per sh. in 1941. Pacific Gas & Electric Co. showed con. solidated net profit, after all charges including $14,851,079 Federal taxes, of $22,276,592 or $2.21 per c. sh. after pfd. dividend re. quirements. This compares to 1941 net profit of $22,461,567 or $2.30 per c.sh, Riverside Cement for 1942 showed net profit of $403,338 after all charges, equal after $142,143 dividends on $6 first pfd, stocks, to $1.09 per sh. compared to 1941 net profit of $747,313 or 02.43 per sh. American Metal Co. had for 1942 net profit of $2,624,477 or $1.82 per c. sh, compared to $3,135,495 or $2.24 per sh. in 1941. Union Carbide & Carbon Co. reports for 1942 net profit of $28,088,722 or $4.10 per sh. compared to $42,041,624 or $4.53 per sh. in 1941. Profits for 1942 exclude a postwar tax credit of $3,780,667. I. E. duPont de Nemours reports that Jan.Feb. sales are about 6% ahead of that period in 1941, Kern County Land Co. reports oil and gas royalty income of $644,017 for January compared to $673,304 in December and $549,422 in January of last year, : : Production of gold in the U. S: during January reached the lowest point for any month since 1933. Rustless Iron & Steel had net income in 1942 of $2,644,557 or $2.76 per c, sh., against 1941 net earnings of $2,334,627 or $2.42 per share, Central Eureka Mining Co. for 1942 showed net profit of $4,954 after all charges, compared to $240,951 in 1941, American Zinc, Lead & Smelting: reported for 1942 net profit of $916,866 or 85c per c. plant of Peoria, ft. of ~ Sh, against $766,500 or 63c per c. sh, in 1941. HALFTONES ZINC ETCHINGS C Roe SACRAMENTO 912 Seventh St. Dial 83-2748 Take the Blindness Out of Mining OUR DIRECTIONAL BEAM WILL LOCATE rr FOR YOu Ancient Channels, Lode Deposits and Placer Survey Work Only — Reasonable: Rates B. & H. GEOPHYSICAL SURVEY Co. 247 Santa Clara St., EL CERRITO, CAL. or 721 Talbot Ave., ALBANY, CALIF, Ye SS; A SOAN SPs Cre 315 (yao.

TEN California Mining Journal, April, 1943 . WPB Nelson Considers ‘Easing Up’ on Strategic Mines Ee ASHINGTON, Mar. 16.—Donald M. Nelson was reported to be weighing a major policy decision, tied to wartime strategy, on whether to embark on long range expansion of copper, zinc and other non-ferrous metal mining. Listening to Western Argument Authoritative sources said the war production chairman is “carefully considering” arguments advanced by Western legislators and the Interior Department’s Bureau of Mines for expending manpower and machinery in the development of marginal mines and in exploratory work whose benefits, in terms of increased metal output, would not be felt until 1944 or 1945. Heretofore the WPB has frowned on mining expansion unless the effects in the form of more metal for guns and bullets could be felt in the first half of this year. Wanted Impact at Once This was in keeping with Nelson’s “construction cutback” policy of concentrating men and materials on things which would have an impact on the enemy at once. However, with the armed forces planning heavy inductions of men throughout this year in apparent anticipation of a prolonged conflict, some informed officials believe the development of basic mineral resources should be projected ahead. Granting that it takes 18 to 24 months to bring a new mine into production, these officials have said that a number of small Mines, because of highspeed exploitation, will be exhausted if the war lasts two years or longer. Earlier in the week Nelson and his executive vice-chairman, Charles E. Wilson, conferred with Senator McCarran, Democrat, of Nevada, on non-ferrous mining questions. McCarran told reporters “he is not satisfieq” with existing WPB machinery for handling mining problems. Exploratory Work One unquotable official said Nelson appeared to have been won over at least to the extent that he thought “a good deal of exploratory work in minerals should be done.” Serious strategic questions are involved. If a “heavy shooting war” is in the making, copper will be expended in great quantities. Another factor is the extent to which the steel shell casings now approved by the army proves successful in combat. COMMENT Evidently Mr. Donald Nelson and his “Big Shot” metal and mineral advisory board, who are bent on keeping all the metal manufacturing in the East, are beginning to be dented by our Western argument, At that, his statements, as appearing in the accompanying Washington dispatch, need a great deal of revision. The great uninformed would be led to believe by Mr. Nelson’s grudging admissions that the reason he has not granted priorities to many Western projects is that they contained “marginal” or low-grade ores. Perhaps he does not know that we have hundreds of massive iron deposits in the West running 50% to 10%, and some as high as 90%, while one informant tells us that ore is getting so scarce in the Lake region that it is necessary to mine ore as low as 18%. We have plenty ot high-grade manganese, chromite (in deposits that will run to 50,000,000 tons), antimony, asbestos, tungsten, tin, and more than 50 other minerals. ens Nelson talks about it taking 18 to 24 months for new operations to get on production. The large opertors can get going in half this time and smaller ones in much less. Nelson evidently figures on the manner in which his Washington “experts” move. The WPB director is trying to let us down with some “exploratory work. Harold Ickes has just got done telling

Congress that Nelson is now refusing to take advantage of the exploratory work done by the U. S. Bureau of Mines, Ickes presented him with reports on 1,600 deposits in 31 different states, but Mister Nelson and his advisors simply ignored them. No sir, Mr. Nelson, all that we want is “Freedom of Production,” and you. and your advisory board are not giving it to us. The manpower question also is said to builk large in Nelson’s study, particularly in the question of developing and exploiting low-grade ore deposits. A worker in a marginal mine produces only a half, a third, or even a sixth as much as a miner working high-grade ores. INVESTORS’ NOTES R. G, Le Tourneau has bought the the National Aluminum Mfg, Co. in Ill, adding approximately 50,000 sq. plant space, National Lead Co. reported 1942 net Profit of $4,246,370 or 72c per sh. against $5,375,695 or $1.10 per sh. in 1941. Pacific Gas & Electric Co. showed con. solidated net profit, after all charges including $14,851,079 Federal taxes, of $22,276,592 or $2.21 per c. sh. after pfd. dividend re. quirements. This compares to 1941 net profit of $22,461,567 or $2.30 per c.sh, Riverside Cement for 1942 showed net profit of $403,338 after all charges, equal after $142,143 dividends on $6 first pfd, stocks, to $1.09 per sh. compared to 1941 net profit of $747,313 or 02.43 per sh. American Metal Co. had for 1942 net profit of $2,624,477 or $1.82 per c. sh, compared to $3,135,495 or $2.24 per sh. in 1941. Union Carbide & Carbon Co. reports for 1942 net profit of $28,088,722 or $4.10 per sh. compared to $42,041,624 or $4.53 per sh. in 1941. Profits for 1942 exclude a postwar tax credit of $3,780,667. I. E. duPont de Nemours reports that Jan.Feb. sales are about 6% ahead of that period in 1941, Kern County Land Co. reports oil and gas royalty income of $644,017 for January compared to $673,304 in December and $549,422 in January of last year, : : Production of gold in the U. S: during January reached the lowest point for any month since 1933. Rustless Iron & Steel had net income in 1942 of $2,644,557 or $2.76 per c, sh., against 1941 net earnings of $2,334,627 or $2.42 per share, Central Eureka Mining Co. for 1942 showed net profit of $4,954 after all charges, compared to $240,951 in 1941, American Zinc, Lead & Smelting: reported for 1942 net profit of $916,866 or 85c per c. plant of Peoria, ft. of ~ Sh, against $766,500 or 63c per c. sh, in 1941. HALFTONES ZINC ETCHINGS C Roe SACRAMENTO 912 Seventh St. Dial 83-2748 Take the Blindness Out of Mining OUR DIRECTIONAL BEAM WILL LOCATE rr FOR YOu Ancient Channels, Lode Deposits and Placer Survey Work Only — Reasonable: Rates B. & H. GEOPHYSICAL SURVEY Co. 247 Santa Clara St., EL CERRITO, CAL. or 721 Talbot Ave., ALBANY, CALIF, Ye SS; A SOAN SPs Cre 315 (yao.