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Mine C: Summarization of settlements with block lessees from the resumption of block leasing in September 1946 to and including Nov. 30, 1949

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1 Royalty, rental of equipment and service, workmen's compensation, occupation tax and property tax;

1,221.90

15.97

1,434. 23

10.37

141.67

1.94

7,924.01

27.18

136.63

-242.43

-2.51

5,895.48

37.31

7,808. 25
855. 81

1,896. 41
-77.51

13.64

-3.88

[blocks in formation]

1 After treatment charges and all metal deductions. ? Include freight, assaying and sampling, truck haulage, hoisting, tramming, royalty, supplies, labor hired.

[blocks in formation]

The CHAIRMAN. Mr. Dumont? You may be seated, Mr. Dumont, if you wish, and the committee will be very glad to have your state

ment.

STATEMENT OF JOE DUMONT, BUTTERFIELD CANYON, NEAR

LARK, UTAH; LEASER, LARK MINE

Mr. DUMONT. Mr. Chairman, they have me listed, here, as "Mr. Joe Dumont, United States Smelting, Refining & Mining Co." I am not an employee of that company. I am an independent contractor of that company.

My name is Joe Dumont. I reside in Butterfield Canyon, near Lark, Utah. I am a miner and have been regularly employed in mining since 1914. During much of that time, I have been operating

mine leases. I have had leases at eight different mines in Montana, three different mines in Utah, and one mine in Idaho. On two occasions, I worked for wages so that I could stake another leaser. I have been working on the same lease since July 1945. It is in the Lark section of the United States and Lark mine at Lark, Utah. The company discontinued operations in the general area of my lease more than 20 years ago. I have invested approximately $5,000 in equipment used in my lease operation. I have had as many as four employees, but now only have one. He is a skilled miner and I pay him a little more than the going wage in the district.

I have produced approximately 12,000 tons of ore under this lease. My yearly net earnings during the period of this lease are as follows:

1945.

1946 1947_

$3,066. 44 1948.

9, 594. 97 1949.
9, 294. 21

$10, 206. 88

885. 15

The CHAIRMAN. What happened to you in 1949, Mr. Dumont ? Mr. DUMONT. In 1949, due to the low metal prices, I had to hunt for different ores, which I just found late in December.

The CHAIRMAN. I see.

Mr. DUMONT. I am on a different type of ore now.

Senator KERR. Might I ask a question, Mr. Chairman?

The CHAIRMAN. Yes, Senator Kerr.

Senator KERR. Are these figures over and above a fixed amount as a monthly salary, or is that the total?

Mr. DUMONT. I have allowed myself a wage besides this. I have allowed myself $12 a day, and these figures represent what I cleared above that.

The ore that I am mining is low grade and must be carefully mined and sorted. Metal prices dropped in 1949. This required more work in selecting and sorting out a product which could be shipped profitably and resulted in increased cost and lower profit, my earnings for the year being considerably less than the wages paid my employee. In mines where I have worked there are usually corners and remnants of ore bodies in stopes and many small detached ore showings and lean ore showings which the mining company cannot profitably mine under day's pay operation, and which for this reason were abandoned so far as being mined by company operation. These ore bodies and showings may be in idle properties or in sections of operating mines now remote from the company's operations. I mentioned that the company discontinued operations in the general area of my lease more than 20 years ago. The reason the company cannot mine these ores profitably is the extra cost of supervision and overhead and the low output per man-shift when they are mined by company operation. Most leasers have had much experience in mining before they start leasing. They know how to mine these ores with the least effort. They know how to drill, blast, select, and sort the ore so as to avoid its dilution with material that is waste rock and finally get the most ore of profitable grade at the lowest costs, and they have the personal interest and initiative that comes from an opportunity for profit in doing so.

Like most men, I have looked for opportunities to make more money and have tried to save something for my old age. Leasing does not assure me the regular income that day's pay or a salary would. As

is the case with many of my fellow leasers, I quit a shift boss job, for which I was paid a salary, to take a lease. Over the years, I have made considerably more at leasing than I would have at day's pay, and I believe also more than I would have earned on any salaried job to which I might have been promoted. Then there is always the hope and possibility that I will hit it big and make a real stake. I get a lot of satisfaction in being a small-business man and my own boss, owning my own equipment, and being an employer, although I have only one man now. I work right with my employee and do most of the planning, arranging for supplies, and looking after the details relating to my business either before or after the usual working hours. This is not a burden to me; in fact, I enjoy it. There is a certain satisfaction in not having to follow a definite work schedule. I can come and go about as I please, although actually I am nearly always on the job. I belong to the local Lions Club and from association with other members of the club, I have concluded that many of the problems in my business are common to most small-business men.

The possibility of leasing being stopped has created a personal problem for me. I have engaged in mining for 36 years. I cannot do as much physical work as I could 30 years ago, but I believe that the knowledge I have acquired about geology, planning, and proper mining methods required to obtain the best results under different conditions, and the application of the skill I have developed in doing mining work in those 36 years more than compensate in my business for the loss of physical strength. I am afraid that I would have difficulty in passing a company preemployment physical examination, and even if I could, I would find it hard to fit in with company operations as a steady vocation. I have given considerable thought as to what I could do if mine leasing were stopped, but I haven't found the answer. After engaging in one kind of work for 36 years, it isn't easy to shift to other work.

The comments which I have made about my leasing operation apply generally to leasers I have known. In appearing here, I represent the leasers in the Bingham district of Utah, and will leave with you a petition which 36 of my fellow leasers and I have signed, asking that the definition of "employee" as now written in H. R. 6000 be changed so that it will not include us.

If you have any questions, I will be glad to try to answer them. The CHAIRMAN. Thank you very much, Mr. Dumont.

Mr. DUMONT. Thank you, Mr. Chairman.

The CHAIRMAN. This statement signed by leasers of the State of Utah will be placed in the record.

(The statement referred to follows:)

SENATE FINANCE COMMITTEE,

Senate Building, Washington, D. C.

GENTLEMEN: We, the undersigned leasers, having been advised that you are now considering H. R. 6000, which would amend the Social Security Act, respectfully petition as follows:

That we are experienced in the work of mining ores containing copper, lead, zinc, gold, and silver.

That we are engaged in the business of mining such ores in the Bingham dis trict, State of Utah.

That we operate under leases granted by mining companies, which permit us to conduct an independent mining operation with the usual freedom and risk incident to an independent business venture.

That we have accumulated equipment and facilities for use in our leasing operations-in some cases of modest value and in other cases having very substantial value.

That sometimes the earnings from our lease operations are less than they would be if we were engaged in mining work in the district at day's pay, but generally our earnings are more and in some cases much more than day's pay.

That in most cases the blocks or areas which we hold under lease could not be worked profitably by the company, either because of the narrow vein or peculiar operating conditions which require special skills and a personal interest in the mining operation.

That the definition of an "employee" under H. R. 6000 would probably make us an "employee" under the Social Security Act, and that if we are so classified, probably all mine leasing in the district will be continued.

That this would stop us from engaging in an independent business which many of us have followed for many years.

That some of us will find it difficult to secure other work.

That we could get back only a small part of the money we have invested in the equipment we now own and are using on our leases.

That much of the ore which could be mined under leases would be lost, since it could not profitably be mined by the company.

We, therefore, respectfully ask that the definition of "employee" as now written in H. R. 6000 be changed so that it will not include us; and we appoint Joe Dumont, one of our fellow leasers, as our representative to appear before you and explain the problems of mine leasing and urge you to amend the definition of "employee" so that it will not include us.

Dated this 22d day of February 1950.

Leno P. Morandi, A. N. Cole, A. I. Coombs, A. O. Jacobson, John T.
Bowles, George J. Usher, Tony Stelenovich, Vel Reed, Albin L.
Holt, Martin Kannikar, Anton Kannikar, Peter Cuevas, C. B.
Mark Zano, Giovanni Ren, Archie E. Parry, Jesus Avilar,
Curin Heinede, Tony Bullock, George Heinecke, O. E. Yates, Don
Palmer, Angelo Kostopolo, Robert Ren, Frank Bullock, Ross H.
Stilwell, Ray Bodell, Erick Hartell, Sherly Shoemaker, Roger
Bare, Muril Bodell, Howard Bare, Leonard Vevatto, Melvin Clem-
ents, Joe Dumont, Herman Heinecke, P. L. Burbank, David V.
Houser. J. H. Dansie.

The CHAIRMAN. We have one more witness, Mr. Ralph Hopes, and I believe that will complete the call of the witnesses.

All right, Mr. Hopes. You may have a seat, if you will.

STATEMENT OF RALPH HOPES, EUREKA, UTAH, MINE LEASER, APPEARING IN HIS OWN BEHALF AND AS REPRESENTATIVE OF THE TINTIC SMALL MINE OPERATORS AND PROSPECTORS ASSOCIATION OF EUREKA, UTAH

Mr. HOPES. Mr. Chairman and members of the committee, my name is Ralph Hopes and I reside at Eureka, Utah. I am what is commonly called a mine leaser, and I am appearing here in behalf of myself and the Tintic Small Mine Operators and Prospectors Association of Eureka, Utah.

In order that the committee may be informed as to the actual operations of the leasers and their problems, I will review my personal history, because it is typical. I am 64 years old and have been in the business of mine leasing for 44 years. During this period I have regularly worked with my hands and I am now engaged in training my son as a leaser. I first leased from the Eureka Hill Mining Co. in 1906-1907. Then I leased in the Bullion Beck mine about 1909–1911. Later I leased in the Beck tunnel until 1913. Then I leased from the McCrystal Co., working in the Gemini and Ridge and Valley mines. In 1929 I was leasing on the dumps of the Victoria and the Eagle

60805-50-pt. 3—37

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