The Daily Alaska empire Newspaper, June 4, 1935, Page 7

BARNEY GOOGLE AND SPARK PLUG UMB RAT, GOOGLE |5 < | VANDER AN W | wmgi‘:é—'&\u | VE SEE | ‘ A LO-WIZIE AR NIGH S\FFI IR WANT- RASH "Al §il,-lll(lna r y of A.J Operations " ‘4s a Business Proposition There are so many misunderstandings and misconcep- tions of the Alaska Juneau Gold Mining Company’s opera- tions prévalent, that we wish to present a summary of the operationh as a business propositien. For-many ‘years prior to 1914, mine development, and experimental milling on a limited scale, first by various small companies and then by the Alaska Juneau Gold Min- ing Company, had been carried on. The operations of the latter company were carried on with the intention of out- lining the yalue and extent of the ore deposits and determ- ining the recovery of gold that might be expected. These earlier operations indicated largé bodies of fow' grade ore requiring operations on a’ large ‘scalé if any profit were to bé made. Up to 1914 sorhe $14,000,000 had been invested in milling by the Alaska Juneau Gold Mining Company. In 1014, the cempany sold 400,000 additional shares of stock ‘at $10.00 a sharé, raising an additional $4,000,000 to build a large mill and pfepare the mine for a large production. Large scale cperations were startéd in March, 1917, ‘and thé results from then until June, 1927, were a series of ‘disappeintments. Chaaga: Neecssary Had ‘the Alaska Juneau been profitable from the slart of its large scale operations, and earned, say, 31,500,090 per year on its original been required to make possible the return of capital with interest atb T per cent. Many changes in the mill were necessary, requiring time and addi- tional money. The tonnage was gradually increased but it was not until the last half of 1927, n years after the mill started to op that an operating profit was made. Operating losses for the years were as follows: | 1916 F s 1917 . 1918 1919 1920 1921 1922 144,538.20 L: ¥ 1923 197,908.47 Loss 1924 90,280.35 Profit 1925 10,835:06 Toss 1926 21481552 Toss 1927—First 5 months 4785.07 Loss 1927—Last 7 months 156,752.86 'Profit The operating profits for the years 1928, 1929, 1930, and part of 1931 were used to pay off the bcnded indebtedness that the operating losses of previous years had created. This brings us to the year 1931 when the first dividends were piid. ¥ N ;s came Dividend Payer After. its ten years of trial, brought about by metallurgical diffi- culties, scarcity of labor, the war, time cqsts, and later the boom time which worked to the disadvantage of ‘the gold miner, ihe Alaska Juneau finally became & dividend ’payer.”"Fhe orgihal ‘capital’ pius bonded indebtedness now amoutited to about $30,000,600. ¥ g In 1931, which marked’ the, first dividel,:d. with annual earnings of $1,000000 it would have .taken }li. additional 30 years to return the capitdl alone with no interest, and over 40 years to return capital, with 3 per cent interesf. ; e, In 193, with (he gold price advanced' to $35.00 pet otince, {ho g | How the First Relief iisi Bl ) “of the first billlof dollarsic : The'figures in the State:, without § 5. The sl of ‘cuch aliotinents i aleo made un HiayaentCabtwright ‘dbt 6 Gire’ map since muéh’'dt thIE" wark” 15 aiready anider Way, 186,000 for rivers ‘dnd Hathdrt e shown. TA this'gfoup’ projeets lccated for lod cost Hondlife, ‘annpiticeme (icn to these picicets, $10,006,000 Hbd" tben’ ificoatelt The map sho‘;"s“l;“ cation totals $1,091, ol ination of giafle crot: 48" — =<3 acquiring property, mine development, and in experimcntal, | | capitalization of $15,000,000, a period of nearly 22 years weuld have! c,!$18,000,000 had been paid on pay Will Be S S48 1 A ' bogekts o 1 it ‘ot ‘Wi '$98,S9HO0D' Wl bet ¥M_SORRY. MR.SMITH, BUT THE DOCTOR SAID 'TO 'LEAVE THE W DQWN --1IT MIGHT { earnings reachéd only 6 per cent, which will peturn the csfptz;\l ‘e 1veste_cl_ with interest at 5 pér ‘¢ent in 41 years. A low yield such as this, is generally coupled with gilt odge securities. In the mining business, & retirn of the ifvestmient in a short time with ‘7 et cemt interest' is an fbsolute minimum demandetl by the risks' inhereat in mining. The bonus on gald which raised the price, merely puts the company in approximately (Hé same comparative position in which’ they ‘wer2 ih the yéar 1913, when large operations were planned, the cost of sup- plies 'ahd labor having' inereased by apprbximately the'same péreent- afic” a5 has the price of' gold ” Faith of Invisiing Public That the fotal present market value of the clock nearly ogualsy the amount invested, shows tho faith the investing public had in the | ultimate outcome in an enterprise of this kind. While it is truc that much of the stock is not now in the hands cf the original ‘nvoestois, the “present stockholders, numbering scme 3,00, ave ontitled to ihe return of their capital with interest. To deny them this is to Jeny the very principles on which American business is founded. = During the period in question, some 36,000,000 tons of ore had been mined ahd sirice there ‘were no profits no credit to the operation for deple- tion of ore'reserves could be given. We have theén, in the year 1931, an invesiment of $30,000,000 of the stockholders, with 36,000,000 tons of their ore gone. The dividends paid last year were at the rate of about 6 per cent on the market value of the stcck which, as before mentioned, S approximately the same @s the investment and accrued interest as of 1931. It takes $1,200,000 annually to pay 4 per cent interest on this capital ‘invested ‘and accrued interest. b Wages High During all these years in which operaticns were conducted at a loss, the wages paid at the Alaska Juneau Gold Mining Company were as high or higher than paid in other western mines, ranging from an average daily wage of $3.52 in 1915 to an average daily wage of $5.22 in the years 1932 and 1933. During this time, the number of men employed deoily increased m 300 to 750. Up to May 1, 1935, account in the tcwn of Juneau, !and $5,067,249 had been paid in dividends to the stockholders. During this time, 53,800,00¢ tons of ore had been m It will thus be seen that the stockholders have rcceived but 10 cents per ton as dividen on the ore that has becn mined during the active life of this operation Since the company has keen making ating profit, large sums have been spent in acquiring prospects, and developing preperties in the vicinity of Juneau. In the fall of 1934, encouraged by ihe prevailing price for gold, upwards of a million and a half dollars we: paid for the old Alaska Géastineau property.” This investment was fmade with a view to expanding dnd -prolonging 'the profitable life of i the Alagka Juneau mine. Upwards of $500,000 ‘additionhal money must bé spent on development before any matéridl amobuntof {mined frem this ground. Every dollar’ spent in’ this deveélopment, is a bénelit, eilther dircctly cr’m‘airevtry,‘to fevery resldent of the town of Juneau. At ‘the beginning of 1934, the various movements to shorten time | worked, and spread employment in industifes,"WHere drastic cuts in wiges had been made, found the Alaska Juneau paying the highest wages paid in liké employment in the tountry: " s an op e can ve Increases Wages ' In the early summer of 1934, tne company increased wages by 16 {per cent and inaugurated a six-day work week. The result of this was [to give employment to 150 mdditional men, and finds us at this ilme with over 900 men on the payroll, with an average'daily wage of '$6.00 per ‘cight-hour day. $ 1 | The térm “bigness” ‘applied to the Alaska Juneau is confusing to the liyman. The' tonnage handled is''the’ largest'of any lode gold ‘mine in the world and the grade of ore is the lowest handled any- where. The Alaska Juneau ‘operation is large by ‘necessity. In point \'of gold production and' profits, this minc stands far below the Lop of the list. In’the ‘United States and~Canada together, ithere are six 16de gold mines; while “in Africa there are”twentysfour such mines, S L States n the United conctruction and elim- ting.. ,000 were urfcd” 0 ed in the g el gt 'year, Twenty' projésts ‘lelided s’ the $102.- at ,000 8o 'nét Wppear ‘on’ the map; DI 000 al- cpént:Hins bésin Minde; The announced Projepls are shownl In addi- ‘Bay’ eeefiie light' ind power projest ‘st Bastpon, Maine; $100,- ‘each pro Juneau | 1 ng more gold -and mak Investment Raturn £3 'stedkholders Summary of Pertinent Facts Precent rate of dividend 6% on this investment Average daily wages pajd were $352 in 1915 i Averfige dtily Whges pald were $5.23"in 1932-1083 | Averhge dallytvagesipatd were 1/$6.05 in'1034:1935 Wages paid'In Junéan ‘each duy Sl $4,500.00 Tota) wages pal@’in Juneans to date £ $18,000,000 1utal dividends “pasd: tostobkholders 5,007,240 ‘Tons niined ‘to ‘date 53,800,000 Alaska ing larger profits than the 3 ¥ st ¢ i $30,600,000 16e per ton mined L. H. METZGAR, By Hertest, Plopmbe 3§ WASHINGTON, June 4—Word| is being passed arpund in labor' circles here’ that the. next ‘conven- | tion - of the American Federation cf Labor, meeting in Atlantic, Gity | next.fall, may. proguge & fight to | the finish betsween . the :industrial, and trade unioniats. Lk ‘ Burly, pugnacious John L. Lewis precident of the' unitéd mine ‘work- ers and a stauch believer that mass production workers should be erganized by industry instead of by craft, is on the watr pathi The trade-unicn-controlled execu- game in the counzil’s ruling en the Anaconda copper case. Various craft unions were given about 400 emp.oyes of Anaconda un- der a ruling of the council who were slatmed by the mine, mill and smel- ter workers, an industrial union. Le Voted Down The ruling angered Lawis. He an- {nounZed he will appeal to the con- vention in Atlantic City to back | hiz stand without reservations else ‘hv”\nll precipitate a show-down batile. The_ situation seems to be this: Lewis joined the president of the western metal miners union in his contention that the mine, mill and cmelter workers should take in all employes “‘in and about the mines” just as/the united mine workers take in all employes at the ccal mines whether minérs or carpenters.’ The craft union members of the council voted down Lewis and Geoge L. Berry of the printing pregsmen’s union, another industrial unionist. Lewis' second ally on the council—David Dubinsky, president of the Ladies’ garment workers— was absent when the vote was taken, Arguments Advanced Lewis and -his uhlonists ‘contend that divided or- ganization means divided strength of bargdnizing power with employ- ¢rs, Many large employers also fa- vor industrial unfonism fo, save duplicate bargaining. % Elimination . of “Jurisdictional lgaders as a reéason for organization by |industry rather than by craft. Construction jobs, particularly, often are tied up for long periods when one union strikes in protest to cer- tain work going to another craft. Wark on the labor, department Il NEX ES,}IH in A. F. of Luaflks Tulked by £qpitnd Lgborites tive council of the A. F. of L. has ket = e han Lewis and his allies one o[‘iol{f:;) ngx ‘(':m)";?‘tlm)en;::u‘x:m:}; {the most important set-hacks they [(R8'O B- b RN EURIRE D have received in” a.long time. Xt o = g fellow industrial| strikes” also is advanced by labor New Location Ol First National Bank Bldg. ol s (oot when two unions which should put the covers on the The' Utited stifes " Civil “sétvice Commission has announced open [competitive examindtions” as fol- | lows: | Apprentice, Goyernment Printing | apprentice examination s open, ap- be [ Plications may filed with the Civil Service d t office nearest the applicant, as well-as with the U. 8. Civil Service Commission at Washington, D. C. 1 Junior entomologist, $2,000 a ye: Lepartment of Ageiculture: Opti al subfetts are: (1) “Apiculture, (2) Physiology w«nd Taxicology, and (3) Ituck Crop and Garden Igscels. Bicloglst (wild life reseaxch), $3,- 800 o year, @ssoclate biologist (wild iife regearch), #3200 .. year, and aspistant biologist (wild Mfe ro- search, $2,600 a’ year, Bureau of Bioclogical Survey, Department of Agriculture. | " Assistant director of wocial work | (senjor warden’s assistant), $2,600 a year, Department of Justice, for filling vacancies in United States | penal and correctional insLlLun;ms;v |'throughout the country, \ | Mediator, $3.800 a year, National Mediation Board. | Multilith operator, $1,440 a year, |Eecurities and Exchange Commis- |sion, Washington, D. C. wr, |year, Bureau of Chemistry and | Soils, Department of Agriculture. | Protozoologist, $3,800' a_year, as- | sceiate protozoologist, $3,200 a year, and asgistant protozoologist, .$2.600 'year, United States Bublic Health Sotvice, Treasury Deparbrhent., Op- ticnal subjects are: (1) General Protozoology, (23 Inbestinal Pro- ! tozos (especiglly | _mmm. and (3) Blood Protozod “texchiding malaria). ¥4 Full information .be .ob- |tained &t Room 811, Federal and Territorial Buildihg, - Juheau. [ had a dispute over Eenior 'soll technologist, $4,60) auf, fip’mfié”flnns are mow underway for a nation-wide celebration : Fsummer and fall commemorating the 100th anniversary ‘of the birth of 'Mark Twain, America’s Roosevelt is honorary chairman an olumbia university active chairm iSchools throughout ‘United States iwhile Nov. 30 has been fixed as tn most cities, - Twain, or Samue on Nov. 30, 1835, in the little town 'spent in Hannibal, Mo., where th historic exhibits connected with his life Boyhood he foremost” humorist. - President d Dr. Nicholas Murray Butler of an of the centennial committee. will observe the event Nov. 1 the date for memorial programs 2l Langhorne Clemens, was born of Florida, Mo. His boyhood was e Twain museum contains manv REV. OLAFSON IS ENROUTE TO SYNOD Tc attend &' Lutheran Church Synod in Vancouver, Wash., the . Erling K. Olafson, pastor of the Lutheran ReSurrection church, left on the Princess Alice this morn- ing. After the synod, the Rev. Olaf- con will travel to Bellingham, Wash "for a visit with his wife and ‘rela- tives, > 23ES OPERATIONS Gecerge Hoggz, herring paeker, in Seward on his way to his plant at Blue Fox Bay, Kodiak Island, an- hounced that he would iner his operations this year by the in- stalation of a reduction plant. He plans to build a’ building 30 by 100 feet and a new dock, says the Seward Gateway. INC. ~ GE R 3o s | After spending the winter in Fair- |banks, B. E. Shiiff of Richardson |left Fairbanks, recehtly to go to | his mining, gfound . on . Redmond buflding in Wachington, for exam- | Creek which 4s nedr flchfidadn i od - TG M 000,000 for Wisconsin’s unified wotk relief program sponsored by Scnator La Follette; and $20,000,000 for five dams on the Colorado Riv- er in Texas to provide irrigation, flood control and power plants. Not shown on the map but also announced as allocated were $100,000,- 000 for reset{lement projectc; $7,500,000 for New York City sewers; $1620,000 for ncn-Federal projects not designated; and $446,500 for roads in Alaska. How the balance of $189,200 would be spent was not announced. R, i Terminal Cafe i [t : - | VERA CHILDS TRAVELS Vera Childs, known as one of the outstanding interior decorators in Scattle, is a passenger on the Yu- kon from the Puget Sound port for Seward. Miss Childs has made sev- eral marine trips to and in Alas- | kan waters during her vacations. i - s ‘ DR. WOODWARD LEAVES ‘ Dr. W. C. Wocdward, Seattle phyi- ician and surgeon, left Juneau on | the southbound Princess Alice after a short visit with his son, Walter, | an Empire reporter. Mrs. Wood- 1wnrd. who aeccompanied her hus- band: here’ ‘last' weék ‘trom 'sédttle, will not make her return for an- other week. e LEAVES HOSPITAL Mrs, Arnold Nordale left the hos- pital in Fairbanks May 25, following an operation. , P NERALD ELECTRIC FEATIURES Never Reavires Oiling—ACTIVA: TOR—One-Coptrol Wiinger—Quiet Operation—Gravity Drain Hose. MADE BY GENERAL ELECTRIC AT BRIDGEPORT, CONN. ) ALASKA ELECTRIC LIGHT & POWER CO. JUNEAU-=Phone 6 DOUGLAS—Phone 18 Chevrolet and Pontiac - Deglers %o CONNORS MOTOR CO. AGENTS — Dave Housel, Prop. OPEN ALL NIGHT Alaskan Hotel Liquor Store Phone Single ®-2 rings § 5 WK @ (A HOM 15k 10 AT 163 10id e HO2 sl ant o W0k HOW awd 0% Woid + vy LW HOT 292 % S T S B DL ar 4 i