Its Everyones Business

National Minerals Advisory Council A meeting of the National Minerals Advisory Council on August 3rd in Washington, D. C., indicated the vitally important part that the mining industry is to play in the mobilization program. Director James Boyd of the Bureau of Mines told the Council that the Department of the Interior would review the recommendations of all the Council's commodity committees with regard for mobilization planning in the light of the changed international picture. The Council was requested to reactivate its commodity committees and have them gather all available data on supplies, their sources and availability and present and potential production of the minerals and metals represented on each committee. Data on labor, machinery, transportation, automotive and stationary equipment, power, fuel, lumber, water supply are a few of the important items called for in the reports, which are to be presented at a meeting of the Council on September 1 at Salt Lake City. The material in the reports will become the basis for discussing metal and mineral requirements at that time. Discussion at the meeting bared several $64 questions, probably the most important of which are the following: 1. Which of the war-essential metals and minerals and in what quantities can we reasonably expect to get them from abroad under threat of submarines? 2. How are we going to meet the manpower problem posed by (a) migration of labor from mining to manufacturing since the end of World War II and (b) the draft and the calling up of reservists? Opinion was expressed by industry spokesman at the meeting that the function of complying with mobilization requirements be left to those in the industry itself; that is, those having the "know how." This view contended that any administrating governmental agency should be kept as small and streamlined as possible. There was general sentiment against the reactivation of the wartime Premium Price Plan or other bonus plans as a stimulus to production. The thought was emphasized that what was needed was a change in the basic conditions which have fostered the decline in domestic mining activity in the postwar years. One such condition, long overdue for correction, is the tax structure as it applies to mining enterprises. Many quarters both in industry and in government favor tax relief along the lines suggested in the six tax recommendations by the Council to the Secretary of the Interior last December. The Council adopted a resolution expressing a feeling that the following tax recommendations are still feasible and desirable and will accomplish as much toward increasing exploration for new deposits (thereby subsequently increasing production) as will government loans for exploration: (1) Losses from unprofitable ventures should be allowed corporations, partnerships, or individuals as ordinary deduction against current income. (2) Development costs after discovery should be recognized as operating expenses. (3) Allowance for depletion should be made to the stockholder as well as to the corporation. (4) Income should not be taxed without full allowance for losses of loss years. (5) Adequate allowances for percentage depletion should be made. A discussion of the manpower problem led to the Council's acceptance of a resolution advising that "military authorities should proceed with caution in depriving the mining and metallurgical industry of its manpower." The resolution strongly urged that no personnel "directly engaged in exploration, development, production or supervision (of strategic and critical materials) should be drafted for the armed forces, at least until the anticipated demands upon these producers are clarified." Stockpiles The Munitions Board's "Stockpile Report to the Congress" of July 23, 1950 revealed: (1) The total estimated value of the stockpile objective is $4,051,714,510 at the close of fiscal year 1950. (2) The total value of the stockpile on hand, at the close of fiscal 1950 was $1,556,154,352 or 38.4 pct of the total stockpile objective. An additional $494,948,060 was on order, making a total of 50.6 pct on hand plus the amount on order. (3) Materials obtained for the stockpile by the ECA from January to June 1950 amounted to $13,112,085, while development projects by ECA during this period involved the expenditure of $9,322,000, mainly with counterpart funds. Shortly after the start of the Korean conflict it was felt that Congress ould appropriate greatly increased sums for the purchase of materials for the stockpile. This stimulus to the program may increase the dollar earnings of those European nations that are present or potential contractors in our stockpiling program. Such a development would mean that these nations could add to their gold reserves, thereby stabilizing their respective economies and hastening recovery. This seems to be the picture for the next six months anyway. The "bug" appears when it is realized that the increased threat of total world war actually may retard recovery in Europe as nations on the continent may feel inclined to devote more of their resources to defense programs. Industries Essential to Defense The Department of Commerce in response to a request by the Department of Defense issued on August 3, 1950 a "Tentative List of Essential Activities" as a "guide for calling up for active duty members of the civilian components of the Armed Forces." The list includes the following: Primary Metal Industries. Included herein are establishments engaged in the smelting and refining of ferrous and nonferrous metals from ore, pig, or scrap. Metal Mining. This category includes establishments primarily engaged in mining, developing mines or exploring for metallic minerals (ores). This group includes all ore dressing and beneficiating operations. Anthracite Mining, Bituminous Coal and Lignite Mining, Crude Petroleum and Natural Gas Extraction, Mining and Quarrying of Nonmetallic Minerals, Except Fuels. Challenge to the Mining Industry The source of our country's great strength lies in its capacity to produce. In times of stress such things as national morale and manpower are all-important but without a capable industrial machine we would be helpless. That machine must be fed with minerals and metals in order to generate and maintain momentum sufficient to insure success. Consequences of the lack of adequate supplies of essential metals and minerals to increase and sustain our industrial power are not pleasant to contemplate. It is absolutely imperative that we put forth Herculean effort to guarantee ample supplies of such essential materials as copper, lead, zinc, manganese, antimony, mercury, tungsten, tin, chromite, nickel, cobalt, iron ore and rubber. The mining industry faces a challenge more serious than ever existed before in the history of our country. The industry must be equal to the task.