THE MENERAL INDUSTRIES CF VERMONT CAN THEY MAKE AN ADDED CONFREBUTEON TO THE STATE‘S ECONOMY Thcslo for “In Degree 9‘ DH. D. MECHIGAN STATE UNIVERSITY Fillmore Christy Earney 1965 THESIS LIBRARY Michigan Stam University This is to certify that the thesis entitled The Mineral Industries of Vermont: Can They Make An Added Contribution To The State's Economy? presented by Fillmore C. Barney has been accepted towards fulfillment of the requirements for 31.1). degree in_Socia.]_Science Major professor Date Mil-25L— 0-169 ABSTRACT THE MINERAL INDUSTRIES OF VERMONT CAN THEY MAKE AN ADDED CONTRIBUTION TO THE STATE'S ECONOMY By Fillmore Christy Earney "Can the mineral industries of Vermont make an added contribu- tion to the state's economy?" Answering this question represents the central research problem. The research focuses upon (1) Vermont's mineral mining and manufacturing (processing) industries-~namely, sand and gravel, granite, marble, limestone, slate, talc, kaolin, and asbestos; (2) the identification of problems common to these industries that are retarding their development, their maximum production efficiency, and their ability to effectively compete with other regions producing the same minerals; and (3) the investigation of programs that might help to reduce the impact of these problems. Tentative identification of problems common to these industries was undertaken through a familiarization with related literature (pri- marily federal publications such as those of the United States Bureau of Mines); then, through extensive field observations, interviews, and correspondence with Vermont's mineral producers and others these problems were carefully investigated. In the final stages of the research a general questionnaire was used to obtain supplementary data. The results of the field observations, interviews, and corre- spondence show that: (l) The state's small mineral establishments have a relatively high turnover rate (closings and openings). (2) Vermont's . V ' '; 0’; 9", V. ‘r H F “463$ mu“ .. ‘F (a; H (D t n W 1 J O- ‘a-O 1 d: {1" their profits. pares 1m? x: o r a; L 23210: puzzlers a failing rail? 1:9 state‘s 2:: ~54 -. .. a used . 3.513 ‘oS ' v I “if 33.:Iers' a CC' 0?. “9“ v- ‘t‘d 0.58. .‘ 0: H‘n 3.. “F 1 V Esar.‘ ., " I ,5 (P u. 'r} 63151;; “a; + t. bu. < ‘v iv .R t ‘ "Hr‘ v i 3 1138331 907‘. u-\ l." . ‘ “'e Canv— Ev-“ h v i f- 3-); Q \v’ . w- UOWQ .. o'. mu: «1‘ b: ‘ “ ~P': : 2 T i“ ‘ 'R‘. ‘.“‘;‘Q‘ v‘r“. ~v ’ “' ‘— ‘ ‘ ' Witt ~.Q\~: “s 1‘, P“ h "-0“ \. ‘_ .; ;~4 I ‘ H k‘r‘Qf“ i‘ >- ‘u? v- \ ‘ ! Fillmore Christy Barney mineral industries have not been experiencing any appreciable growth in sales and they suffer from pronounced cyclic fluctuations of demand for their products. (3) Production efficiency in several industries com- pares unfavorably with competing areas in other states. (h) Transpor- tation problems are especially important because of the state's location, a failing railroad system, and the low-value high-weight commodities of the state's mineral industries, although Vermont's proximity to the large markets of the Northeastern United States helps to offset these disadvantages. (5) Vermont is losing a large number of its young male workers, a condition that in the long run could be detrimental to its labor pool of workers needed in the skilled mineral mining and processing occupations. In addition, producers presently have, with the exception of the granite industry, no training programs to assure replacements of skilled personnel or for meeting future worker needs that will likely arise with advancing production technology. (6) The tax burden in Vermont is high compared with many other states producing competing mineral commodities; and producers in at least one industry, granite, have been experiencing widespread assessment inequities. (7) Many pro- ducers have little knowledge of important management techniques including cost accounting and the maintenance of adequate personnel records. (8) Some mineral producers appear to have considerable difficulty ac- quiring investment capital, and a large number, especially in the granite industry, suffer from overextended credit. (9) Only limited amounts of raw materials are available to some of Vermont's mineral establishments. Although several mineral mining producers are actively engaged in proving new reserves, a state-supported effort of field investigation and laboratory research could be helpful toward ensuring Vermont's future .04 P. -.. ' 5:». .s as a . .c v AWDQ“”':‘: QC " U.» . u‘n-ovgvu 6‘" .- masec‘ efforts '. {' crav:~vo fl.'_ .-.....-.4.4-SO \- v~ . g”«p9 b.0Vl U c ‘t o-y a. . -DUA .5- ~9- . “ -;~u”0: n 6"!- :.0Jdv¢A0-i 8 5'1... [i ‘ ngl to surge i'*-'e‘. Fillmore Christy Barney status as a mineral producer. (10) The state's mineral producers have opportunities available for greater efficiency and growth through in- creased efforts at promoting their products and updating production techniques. Other opportunities are available through cooperative efforts implemented by industrial associations functioning to maintain production standards, to support profesSional advisory personnel, and to pursue market research. THE MINERAL INDUSTRIES OF VERMONT CAN THEY MAKE AN ADDED CONTRIBUTION TO THE STATE'S ECONOMY? By Fillmore Christy Earney A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY College of Social Science 1965 To Winnie Jo, who has these past ten years so often reminded me that the panic of error is the death of progress. PR EFAC E This study is in many respects the culmination of an interest developed through several years. The author's broad training in the social sciences and appreciation for the relationships of "economic man" to his physical and social environment have led to the development of an interest in mineral geography. The problems faced by “man“ in mineral exploitation and the increasing opportunities for mineral uti- lization through advancement in technology and social organization il- lustrate especially well the melting pot of social-physical reality. W Vermont's mineral industries are in large part taken for granted by many of its residents. Few of the state's citizens really know how important these many industries are to Vermont's economy. Even fewer have given careml consideration to possibilities for their added con- tribution to the state's economy. It is the purpose of this paper (1) to investigate what problans reduce the efficiency, competitive po- sition, and, consequently, the growth of Vermont's mineral industries. and (2) to explore possibilities for an added contribution to the state's economy by these industries. WW Only those industries which mine the solid economic minerals of Vermont and those industries which alter these extracted minerals through manufacturing processes are included within the scope of this study. iii W23 Ithe materials presented in this paper represent two years re- search and study. Initial work on the mineral industries of Vermont was begun in the fall, 1962, with a study of the slate industry. An intense interest in Vemont's mineral industries came from this work. This interest led to the selection of the dissertation topic in the mar of 1963. Once selected, research on the topic was undertaken by: (1) Establishing precisely what minerals are produced in Vermont and where. (2) Becoming familiar with the terminology of the various indus- (3) (1+) (5) tries through wide reading of available literature; at the same time determining common problems, weaknesses, and oppor- tunities of the different industries for study in depth. Making field observations of over 50 mineral establishnents and conducting over 70 persoml interviews with mineral pro- ducers and others. Corresponding with other scholars in the United States and Canada, mineral producers in Vermont and other competing mineral regions, labor leaders. and officials of Vermont, other states. and the federal government. Compiling supplanmtary data obtained through questionnaires sent to each of the state's mineral producers. W: I should like to express my appreciation to all these wines efforts and interest have made possible the pursuit of this research. iv Without the willingness of correspondents to aid my work through an- swering my many letters and without the generous assistance and under- standing of Vermont's mineral producers, this study would not have been possible. I am especially indebted to the director of this dissertation. Professor Clarence L. Vinge of Michigan State University. whose patient guidance and keen criticisn have made possible the completion of this research. ‘V ‘J “I. ‘ as VI; fl.— TABLE OF CONTENTS PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . LIST OF TABLES. . . . . . . . . . . . . . . . . . . . . . . . LIST OF ILLUSTRATIONS . . . . . . . . . . . . . . . . . . . . LIST OF APPENDICES. . . . . . . . . . . . . . . . . . . . . . Chapter I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . Definitions of Terms II. IMPORTANCE OF VERMONT'S MINERAL INDUSTRIES TO THE STATE'S ECONOMY--PAST AND PRESENT. . . . . . . . . Past Copper Iron Gold Ocher Present Summary and Conclusions III. ESTABLISHMENT SIZE AND BUSINESS TURNOVER . . . . . . Establishment Size Business Turnover Summary and Conclusions IV. GROWTH AND PRODUCTION FLUCTUATIONS . . . . . . . . . Growth Production Fluctuations Summary and Conclusions V O PRODUCTIOIq EFFICIEICY. I O O O O O O O O O O O O O 0 Value Added Summary and Conclusions vi Page iii ix xii 27 33 45 Chapter Page VI. LOCATION, MARKET ACCESSIBILITY AND ASSOCIATED TRANSPORT PRO BLE'IS e e e e e e e e e e e e e e e e e 52 Market Accessibility Location Proximity to Canada Vermont Transport Systems and Transport Problems Early transport systems Railroads of today Highway systems present and planned Rail Freight Rates Comparative Freight Rates and Utility of Truck and Rail Carriers Prospects for Future Transport Sea-land carriers Champlain waterway Summary and Conclusions VII. LAmR. O O O O O O O O O O O O O O O O I O O O C O I O 96 Age Structure of the Labor Force wages Education, Labor Needs, and Training Programs Educational level Future labor needs and training programs Labor Turnover Rates Unionization and Labor-Management Relations Unionization Labor-management relations Attitudes of management Attitudes of labor Automation and mechanization Summary and Conclusions VIII. MAJOR PROBLEMS ASSOCIATED WITH FINANCE . . . . . . . . 135 Capital Acquisition Overextended Credit Stock Reserves Summary and Conclusions IXe TAXEIS MUD REJATED PROBLE‘IS e e e e e e e e e e e e e e 145 Taxes Related Tax Problems State equalization study Summary and Conclusions X. FUEL AND ELECTRIC ENERGY CONSUMPTION ND COSTS . . . . 161 Relative Power Needs vii Chapter Page Purchases and Costs of Fuels and Electric Energy Fuel costs Electric energy costs Summary and Conclusions XI. RAW MATERIAL AVAILABILITY AND PROBLEMS OF EXTRACTION AND MANUFACTURE. . . . . . . . . . . . . . 172 Raw Material Availability Problems of Extraction and Manufacture Quarrying and processing waste Problems of climate Silicosis Summary and Conclusions XII O OPPORTUI‘JITIE O O O O O O O O O O O O I O O O O O O O 0 2014' State Efforts at Development Minerals Experiment Station or Laboratory Field Study Imaginative Investigation waste Utilization Granite Talc Slate Diversification and Promotion Market Analysis Cooperation and Organization Barre Granite Association: an example Amalgamation Summary and Conclusions XIII O SLWARY Aqu CONCLUSIOIJS O O O O O O O O O O O O O C O I 238 BI BIJIO GRAPH O O O O O O O O 0 O O O O O O O O O O O O O O O O O 249 viii 1o. 11. 12. 13. 14. 15. 16. LIST OF TABLES Comparative Per Capita Values of A11 Minerals Sold or Used in Selected States in 1962. . . . . . . . . . . . . Per Capita Value of All Stone Sold or Used by Producers in Selected States in 1962 . . . . . . . . . . . . . . . Per Capita Value of Varied Stone Types Sold or Used by Producers in Vermont and Other States in 1961. . . . . . Turnover in Vermont Mineral Mining and Manufacturing EStabliShmentS, 1955—1957. e e e e e e e e e e e e e e e Annual Growth Rate over Previous Year of A11 Vermont Mineral Mining Industries, 1927-1962 . . . . . . . . . . Annual Growth Rate over Previous Year of Vermont Stone Industries, 1927-1962. . . . . . . . . . . . . . . . . . Value Added per Man-Hour in Mineral Industries of Vermont and Those in Other States for 1958 . . . . . . . . . . . Import Duties on Selected Mineral Commodities Entering Canada and the United States . . . . . . . . . . . . . . Comparative Freight Rates for Truck and Rail Shipments from CheSter-Springfield, Vemonte e e e e e e e e e e 0 Railroad Freight Rates for Granite Commodities . . . . . . Railroad Freight Rates for Slate Commodities . . . . . . . Railroad Freight Rates for Talc Commodities. . . . . . . . Railroad Freight Rates for Marble Commodities. . . . . . . Comparative LCL and LTL Freight Rates on Granite from Barre, Vermont . . . . . . . . . . . . . . . . . . . . . Net Out-Migration of Vermont Males in the Decade 1950-1960 Who Were 10 to 24 Years of Age in 1950 . . . . . . . . . Net Migration of and Percent of Males Migrating from or to Selected States During the Decade 1950-1960 Who Were 10 to 24 Years of Age in 1950 . . . . . . . . . . . ix 18 19 31 34 #8 58 71 78 80 82 83 87 99 101 Table Page 17. Average weekly and Hourly Earnings in Vermont Manufac- turing Industries, 1963 . . . . . . . . . . . . . . . . 102 18. Comparative wage Rates for Mineral Industries in Vermont and Other States with Competing Regions . . . . 105 19. Median Number of Years in School Completed by Males 25 Years or Older by Major Mineral Producing Counties in Vermont and Other States in 1960. . . . . . . . . . . . 107 20. Future Labor Needs in Vermont's Mineral Industries. . . . 108 21. Current Vacancies, Hard-to-Fill Positions, and Number of Men in Training in Vermont's Dimension Stone Industries as of June, 1963 . . . . . . . . . . . . . . 111 22. Percentage Distribution of Employment in the Various Mineral Industries of Vermont by Occupation and Skill Level as of June, 1963. . . . . . . . . . . . . . . . . 113 23. Average Annual Labor Turnover Rates in the Mineral Manufacturing Industries in Vermont, 1958-1963. . . . e H H G\ 24. Comparative Total Labor Turnover Rates for Mineral Manu- facturing workers in Vermont and Other States . . . . . 116 25. Number of Vermont Mineral Producing Firms Maintaining Personnel Records Based on 42 Firms Responding to the General Questionnaire . . . . . . . . . . . . . . . . . 119 26. Number of Firms Unionized in Vermont Mineral Industries as or July.’ 1964. 0 O C . C C O C O O O C O C C O O O O 120 27. Comparative Bank Loan Distributions as a Percentage of Total Loans in Vermont and Selected States. . . . . . . 136 28. Comparative Assessment Ratios and Tax Rates for Real Property in Cities Located in Mineral Regions of Vermont and Other States for 1964 . . . . . . . . . . . 147 29. Corporate Income Tax Rates for Selected States as of 1963 149 30. Comparative State Gasoline Taxes for Selected States. . . 149 31. State Personal Income Tax-~Ranges and Averages. . . . . . 150 32. Total Per Capita Tax Burden for Selected States as of 1963. O O I O O O O O O O O O O O I O O O I O O O O O O 153 33. Comparative Granite Firm Appraisals Based upon 1963 Actual and 1964 Recommended Plant and Land Appraisals . 155 X Table Page 34. Fuel and Electric Energy Costs as a Percentage of Value Added for Selected Manufacturing Industries on a National Basis in 1958 . . . . . . . . . . . . . . . . . 162 35. Comparative Costs of Fuel Oil for Stone, Clay, and Glass Manufacturing Industries in Vermont and Selected Other states for 1962. I O O O O O O O O O O O O O O O O O O O 165 36. Comparative Fuel Costs per Million British Thermal Units for Selected States as of 1963 . . . . . . . . . . . . . 166 37. Average Electric Energy Rates of Vermont Compared with New England States and the United States . . . . . . . . 167 38. Average Electric Energy Rates of Vermont Compared with Selected States with Competing Areas of Mineral Production . . . . . . . . . . . . . . . . . . . . . . . 168 39. Average Electric Energy Rates Paid by Vermont's Mineral Producing Regions Compared with Major Competing Regions in Other States. . . . . . . . . . . . . . . . . 169 40. Average Annual Degree Days for Selected Cities in Vermont and other States . O C C O . O O O O C C O O O C O O O O 200 41. Trends in Poultry Production in the North Atlantic and New England States 0 O O O C I O O O O C C C C O O C O C 21.3 42. Number of Firms in the Major Mineral Industries of vemont, 1900-196“ e e e e e e e e e e e e e e e e e e e 233 xi LIST OF ILLUSTRATIONS Figure 1. Map--Past Mineral Industries of Vermont. . . . . . . . . . 2. Photo--The Abandoned Ely Copper Mining and Smelting Site near Copperfield . . . . . . . . . . . . . . . . . . . . 3. Photo--Abandoned Iron Forge near Forestdale. . . . . . . . 4. Map--Minera1 Industries of Vermont, 1964 . . . . . . . . . 5. Map--Number of Vermont Mineral workers by City, 1964 . . . 6. Map--Tota1 Number of Mineral Nbrkers in Vermont by county, 1964 O O O O O O I O O O O O O O I O O O O O O O 7. Map--Number of Mineral Mining workers in Vermont by county, 1964 O O O O O I O O O O O O I O O I O O O O O I 8. Map--Vermont workers in Mineral Manufacturing Compared with Total Manufacturing workers by County, 1964 . . . . 9. Line Graph-~Total Value of United States Residential and Nonresidential Buildings Constructed Compared to Total Value of Stone Sold or Used by Producers in Vermont, 1915-196} e e e e e e e e e e e e e e e e e e e e e e e e 10. Line Graph--United States Sales of Roofing Slate and Millstock Compared to Number of New Dwelling Units, and Value of Certain New Nonresidential Construction . . . . 11. Bar Graph-~United States Total Value of Residential and Nonresidential Building Construction Compared for Years 1940-1963 e e e e e e e e e e e e e e e e e e e e e 12. Map--Market Access: Vermont & Pennsylvania Slate Regions 13. Map--Railroad Network of Vermont, 1900 . . . . . . . . . . 14. Map--Railroad Network of Vermont, 1964 . . . . . . . . . . 15. Map--Transport Network of the Windsor County Talc Region . 16. Map-~Proposed & Completed Interstate & Major Primary HighI’:ay PI‘OjECLS, 1963-1977e e e e e e e e e e e e e e e xii 10 12 15 21 22 23 25 38 4O 42 64 65 7o 75 Figure 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. Graph--Comparative Population Profile for Vermont and the United States 0 O C O . O O O O 0 . O O O O O C O O O C . Photo--Multip1e Boom—Derricks Used in a Rock of Ages Corporation Granite Quarry in Graniteville . . . . . . . Photo-~Vertical-Shaft Entry of Marble Mine-Quarry at TVJeSt Rutland O O O O O O O O O O O O O O O O O O O O O Photo--Channe1bar Being Used in New Marble Mine-Quarry at South Dorset . . . . . . . . . . . . . . . . . . . . . . Photo--Boom-Derrick in Operation at West Rutland Marble I‘Iine‘QuaI‘I'y. e e e e e e e e e e e e e e e e e e e e e e Photo--Circu1ar Granite Shed Built to Accommodate Stationary Derricks. . . . . . . . . . . . . . . . . . . Photo--0verhead Crane at Green Mountain Marble Company's Finishing Mill in West Rutland . . . . . . . . . . . . . Photo-~Antiquated Granite Shed in Barre. . . . . . . . . . Photo--Antiquated Slate Mill in Poultney . . . . . . . . . Photo-~Blasting Slate Beds Loose from the Quarry Face near North Poultney. . . . . . . . . . . . . . . . . . . Photo--Slate Debris beside Quarry Openings near North POI-lltney‘ O O O C O I O I O O O O O O C O I O O O O O O O Photo--Snow Covered Storage Yards and Roads at Vermont Structural Slate Company Mill in Fair Haven. . . . . . . xiii Page 13 183 184 187 188 190 191 193 195 201 LIST OF APPENDICES Appendix Page Questionnaire O O O O O O O O O O C O O O O O O O O O O O O O 246 CHAPTER I INTRODUCTION Change has become the watchword of the American scene, and few, if any, of its social, political, or economic components have escaped the need for readjustment. Vermont is a part of this reorganization-- this attempt to meet the demands of modern society. Extensive changes are underway in the state's educational institutions, there are innova- tions in its mental health programs, and there are redevelopment pro- grams in its cities. Perhaps the atmosphere of change in Vermont is reflected best in the 1962 state election when Governor Philip H. Hoff, on a reform ticket, became the first Ibmocrat to fill this office since 1855. But political-social awareness and change are not enough to as- sure Verlont's continued movement in the mainstream of American life. Vermont, to maintain its social advances, must move toward greater eco- nomic deve10pment and growth. To do this, Vermont should develop all of its economic resources to their fullest potential. Vermont's economic base has many roots. Some of these have not received careful enough consideration by its businessmen, its educa- tional institutions, or its governmental bodies. Vermont's mineral in- dustries are one of its neglected economic activities. The mineral indus- tries of vermont have played an important part in the state's economy for nearly 200 years and should continue to play an important part. Vermont's l 2 mineral industries. however, can make a greater contribution to the state's economy because opportunities exist for increasing their effi- ciency and growth through intensive efforts in self-evaluation, research, cooperation, and imagination among the general public, state officials, and the state's mineral producers. Definitions of Terms Before an examination of Vermont's mineral industries is under- taken, definitions basic to the discussion in the renainder of the thesis should be set forth. Specific terminology is important because of the nature of the statistical data available and the dual industrial classifications under consideration--namely, mineral mining and mineral manufacturing (processing) industries. A large part of the statistical information used in this study is based upon data contained in the United States Bureau of the Census publications WW5 and We: W whose data are predicated upon industrial classifications contained in the Budget Bureau' s publication W331: W (1957 edition). Therefore, the following definitions of industrial classification used in this thesis are based primarily upon those contained in these three government publications. WnaA nappablo unit of capital invest- ment operated by a functional labor force. W"8 group of establishments producing a single product or more or less closely related group of products. 3 War-in this thesis the term is used broadly to include all establishmts primarily engaged in mining (including quarry- ing) the state's mineral raw materials from the earth and all establish- ments in the state manufacturing (processing) these raw materials into finished or semi-finished products. Definitions for these industries will be based upon the broad industrial division classifications included in the WWW-wing and manufacturing. Wain-«ll establishments primarily engaged in mining naturally occurring mineral raw materials. The term mining is used broadly to apply to all quarrying and milling (crushing, screening. washing, flotation) and other rudimentary preparation needed to render the material marketable. It also includes these establishments active in the exploration or development of mineral property- WW (except m618)--include establishments active in extracting dimension stone, crushed and broken stone, sand and gravel, clay, talc, soapstone, and mineral fertili ser materials. War-all establishments quarrying stone, an earth material in contrast to metallic or carbonaceous materials. This grouping includes establishments producing dimension stone, or crushed and broken stone. WWW-all establishments primarily engaged in mining or quarrying and sawing rough blocks. sheets, and slabs of stone material that are used for structural, decorative. or monumental purposes. li‘he 4 WW includes data for both mining and some manufacturing establislnents under the dimension stone classification but specifically differen- tiates between the two industrial groups. Data for estab- lisknents active only in mining or quarrying are classified under “quarries only.“ Data for establishnents engaged in quarrying and with associated dressing plants that shape, polish, or otherwise finish rough blocks and slabs are classified as “quarries with dressing plants" and are con- sidered to be manufactural 1r dressing activities are dominant. ments primarily quarrying crushed and broken stone such as limestone, granite, marble. and slate. It does not include quarries which are parts of establishments primarily manu- facturing quicklime, hydrated lime. reattybmixed concrete, or bituminous concrete. Wuinclude establishments mechani- cally or chemically transforming raw materials into new products. These activities are usually carried on in plants. factories. or mills. which characteristically use power-driven machines and mate- rials handling equipment. WWW-include those establishments primarily med in transforming mineral raw material into new products and are classified under the major industrial grouping of stone. clay, and glass products. WW-mclude prinari'. clay pr: “.d 11:: tabl; sewer 5 primarily (in Vermont) cut stone and stone products, structural clay products, concrete blocks and bricks, ready-mixed concrete, and lime products. Wuhan“ establishments primarily engaged in dressing (shaping, polishing or otherwise finishing) rough blocks and slabs of stone such as slate, marble and granite. Wuinclude es- tablishments producing items such as bricks, tile, and sewer pipes. CHAPTER II IMPORTANCE OF VERMONT'S MINERAL INDUSTRIES TO THE STATE'S EEONOMYm-PAST AND PRESENT When Vermont is characterized as a mineral producing state, in- terest is most often focused upon its famous marbles, granites, and slates. While these minerals are presently extracted and processed in the largest amounts, there have been periods in Vermont's history when other mineral industries received the greatest attention. The exploita- tion of these minerals, in a few cases, was sporadic, on a small scale, and tinged with considerable speculation; others were produced for longer periods of time, on a large scale, and with careful planning. Problems such as depletion, transportation, competition, changing market demands, finance, and business failure--recorded in the histories of the state's past mineral industries--are often the problems of Vermont's present day industries. Past A large number of Vermont's once flourishing mineral industries have vanished (Fig. 1). Although these industries are no longer func- tioning, evidence of their former activity exists in many parts of the state. Copper, iron ore, gold, ocher, lead, and garnet have all been extracted frmm the valleys and mountains of Vermont. Several mineral industries have played a very important part in the development of Vermont, {and a few have contributed, if only in a small way, to the development 6 l I 73° 72°30‘ 72° Highqate - Ctr. @BerkshIre Swanton 6) GT Sheldon ray Q Cody's Falls Morristown Corners 44° 0 P30' 33‘ @ St. Johnsbury Stowe Worcester Monkton Borough G Bristol v (9 "Penn. Coolwille ®6ranville @ 01,- 0 Vershirc \6 “up, Middlebury %c°°° .6“ G Randolph® Strottord 00 Forestdale G‘“.\‘°‘° S- N Bethel Brandon 0 s"°"°"‘ LEGEND , ®8Chmondgn Norwich COPPER Fair Pl"!f0fd "on" Q FELDSPAR G Cdstleton 00 e®8ridqewater @ GARNET : l 43. Wellington! Plymouth 6 GOLD b30' “w o 0 men so Tinmouth 9 Tyson 6 LEAD 5. allinatord Gassetts@ . “0w 0 OCHER Dorset 59”“ (D @N. Dorset “- E. Dorset Manchester Depot PAST Shot t abury Newtone Somerset MINERAL INDUSTRIES S. Shottsburr ‘1 00'" OF VERMONT o@Woodtord o Bennington Readsbaro 0. '9 1° (9 m... o I 713 72:30 7? no.5. Source: Data Compiled from Vermont Geological Reports, Ieos—Isso. Flg.i of the entire Zn In 1793 paras from pyri' lute, was made 1585 allorlng c Harmon of Fears later (16 inn-pyrite or. met mining Skies. “.1313 “Won betvee la . mum) on 1 W. «.2 at Sour» i a” “Elms p of the entire United States. 99222:: In 1793 in Orange County, Vermont, miners began producing cop- peras from pyrites-~iron-sulphide ores. Copperas, a hydrated iron sul- phate, was made by leaching pyrites, boiling the watery solution, and then allowing crystallization to occur. The crystals were used in the preparation of disinfectants, tanning agents, dyes, and inks. Thirty years later (1820) copper pyrites were discovered in the gangue of the iron-pyrite ores.1 This discovery led to the development of the first copper mining and smelting of any economic importance in the United States. Mining soon extended for some 20 miles in a northeasterly di- rection between the village of South Strafford on the south and Cookville (Corinth) on the north, but most activity centered around the Elizabeth Mine at South Strafford and the Ely Mine at Copperfield. Early attmnpts at melting proved so ineffective that the ores were first sent to England and later to the Boston area for processing.2 Not until 1866 was local smelting of the region's copper ores finally accomplished; but once underway, production increased steadily until in 1880 output from only one mine and smelting establishment, the Ely, reached a peak of 3,200,000 pounds of refined copper. In the following years production declined, and only ephemeral attempts at copper extraction at this site 1H. P. Hermance, G. L. Neumann, and 14ch Mosier, W Report of Investigations No. #395 (Washington: U. 8. Government Printing Office, January, 1949). p. 2. zmward Hitchcock. 91.31.. BMW Vol.II: - - : .-» (Clarmont, N. 11.: The Claremont Manufacturing Comparw, 186l), p. 856. scarred (Fig. 2‘. iet‘tflne, contin. gradually became e of never and rich-r I areas of the Int“; national crisis. I geeennent supper of extraction 35L nu fwiuion began 1 Unless me lav-quality Ore s ' Ute, 1°38 Prods. dMot a110,, a p! m The my}: 1185‘» industries lest. border or t V: , 9 occurred (Fig. 2).3 Production at the South Strafford site, the Eliza- beth Mine, continued intermittently well into the twentieth century but gradually became entirely noncompetitive. Low-grade ores and the opening of newer and richer copper regions in the United States and in other areas of the world forced its closing. Only during times of war and national crisis, when copper commanded premium prices or when the federal government supported the reopening of the establishment, did activities of extraction and processing resume. The Elizabeth's last period of operation began in 19%, and its last closing occurred only in 1958. Unless methods of extraction can be developed to utilize very low-quality ores, it is not likely that copper can be profitably produced in this region again. Even the small amounts of silver, gold, and py- rite, long produced as by-products of copper extraction in this region, do not allow a profitable continuance of the industry. Inn The mining and melting of iron ores was one of Vermont's ear- liest industries. Iron mines and forges once operated from the northern- most border of the state to the village of Bennington in the south. Miners extracted bog ores and forged pig iron as early as the 1780's; ironmasters built the first forge in Fair Haven, Vemont, in 1785. By 1794, fourteen forges, three furnaces, and a slitting mill“ were operated in Rutland County, and seven other forges were scattered over the state's western portion in Bennington, Addison, and Chittenden Counties. 3Hemance. We pp- 1-3- “flitting mills cut flat sheets of pig iron into strips that could be further processed into nails. 10 Fig. 2.--The abandoned Ely copper mining and smelting site near Copperfield. r‘er' Int'rse near the village iron industry a: It was here that preparing to use of iron shot;6 a; fitted with Verg. i to meet and defe; Iron are “7 in Venont u: afimdngton 511910; costs °f Product; access to Cheap i’eNhnt Closed 0: Mile in 1550' : mt mushy an in the case 0 iron PPOOuc-lng I‘ peeling any rev 11 In the early nineteenth century 20 bloomeries were producing near the village of Vergennes in Addison County.5 A few years later the iron industry of Vergennes played an important part in the War of 1812. It was here that Master-Commandant Thomas Macdonough in 1813, while preparing to meet the British on Lake Champlain, obtained huge quantities of iron shot:6 and it was from here that several ships, built and then fitted with Vergennes iron,7 among which was the W, sailed forth to meet and defeat the British at Plattsburg Bay (1814). Iron ore extraction and forging continued as an important indus- try in Vermont until just before the Civil War. In 1850 iron works at Bennington employed 150 to 200 men. As bog ores became depleted, as costs of production rose, and as competition from other areas with easier access to cheap transport and fuel increased, the mines and forges in Vermont closed one by one. By 1860 the Bennington forges and mines, so active in 1850, lay in decay.8 The only reminders of this once impor- tant industry are the crumbling stacks of long abandoned forges (Fig. 3). As in the case of copper, are depletion and competition from other major iron producing regions, as well as inaccessibility to cheap fuel supplies, preclude any revival of this industry in the state. 5.1m: :1. Swank. WW 1 : e z ; 9| 0 e m :.,-_ ; .‘e [I : £84885 (Philadelphia: By the author, 1881;), pp. 98-99. 6Richard S. Allen, 'mrnaces, Forges and Foundaries,’ [gm]; m: XI ("11113913 1956‘1957)e 50 7Ra1ph n. Hill, - . (New York: Harper a Brothers, 1960), p. 152. 8Allen. Ma: 9- 8 12 Fig. 3.--Abandoned iron forge near Forestdale. 13 Bald Vermont has had its own local gold rushes: each resulted in high hopes but little else. Gold discoveries near Newfane in 1826 and at Somerset in the early 1840's were disclosed by local residents as a hoax of land speculators-~everyone knew that gold occurrences depended on a wane climate. This obviously excluded Vermont.9 Other discoveries made by prospectors returning from California‘s gold fields in the early 1850's stimulated flurries of activity along the streams of the Green Mountains. Villages such as Plymouth, Readsboro, Bethel, and Stowe ex- perienced the effects of “gold fever." Most efforts at milling lode ores and panning gold bearing stream gravels received little reward and lasted but briefly. Today the only evidence of interest in Vermont gold comes from amateur weekend prospectors. Qchm: The Green Mountains' western margin was once the site of exten- sive ocher:Lo extraction. Iron ore miners sometimes produced ocher as a by-product when washing iron ores. Production of this pigment material,:L1 used in paints and ceramic clay, continued almost uninterrupted from 1820 until 1916. From 1889 until 1913 Vermont annually produced enough ocher to rank third in the United States. Since 1916 no ocher production 9Char1ea B. Adams. W W (airlington, Vermont: Chauncey Goodrich, 1845), p. 32: and Hitchcock, ML... pp. 810-144. loHitchcock, ML, pp. 808-09. llIron oxides used for coloring: red from hmtite, yellow from limonite. 14 -of significance has occurred.12 At times throughout the state's history, Vermonters have pro- duced many other minerals. in small quantities, such as garnet, whetstone, lead, manganese, and lignite.13 Although much more could be said of Vermont's picturesque and once important mineral industries, it would serve no purpose. A discussion of these early industries merely empha- sizes that (1) Vermont's importance as a mineral producing state has long been established, and (2) the problems faced by producers in these past industries--among which were depletion, competition, transportation, and changing market demands--are often encountered by the mineral pro- duc ers of today. Present What are Vermont's mineral extracting and manufacturing indus- tries? How important are Vermont's mineral industries to the state's present economy? What part of the total work force is employed in ex- tracting and manufacturing minerals? Vermont's mineral mining and manufacturing industries are rather widely distributed (Fig. lb). Asbestos and granite are quarried in the state's north central portion, slate in its west central margin, and limestone along Lake Champlain’s eastern shore. Just to the east of the slate area, in the vicinity of Rutland, workers remove marble from what 12Frederick A. Burt, "Location and Geologic Relations of Mineral Piments in Vermont,“ . ~ , - - - . ed. Hewitt Wilson, U. 3. Bureau of Mines Billetin 370 (Washington: U.S. Government Printing Office, 1933). P. 15. J'3AJ.fred Traverse. Wm: Tammi. U.S. Bureau of Mines Report of Investigations No. 5151 (Washing- ton: U.S. Government Printing Office, December, 1955), pp. 1-5. D“. so “Ida S . e Oahu. 3 ll ' phi" I 0 “Ch .31. 15 n‘so' 7'2. Véj... 69...... Lo otte e 6...... (5 gm... O :3- , G) «: ' Hordwicll 30 , . Woodbury® Johnsbury S. Burlington oAdamont Hinesburg. @ Waterbury E. Montpelier Montpelie 0° Borre :_ ‘ @Bristol E Barre yeqo . Northt'el ' Websterwlle LEGEND Williamstown 1).”, ASBESTOS ’e Middlebury 6) saw" Rochester CONCRETE BLOCK 6) GRANITE Bethel Florence KAOLI N o Proctor LIMESTONE D Rutland White g) D River .lct. MARBLE enter Rutland Win69“; SAND B CRAVEL l-Iornmondsrille0 o SLATE 43° 30" noon-0 g/Qflb Q soapsrowc Perkineuille gellinotord {6° TALC Gossetts§ VERDE ANTIQUE Simonsvil 300"“ Chester MINERAL INDUSTRIES OF VERMONT I964 “I” ‘..:..: "'"'"°'°Q\ : '9 :0 Miles 7? '2'." 72’ no.5. _.L Source: Data Compiled from Vermont Directory ot Manufactured Products (loco-Ices). IT“ fl are locally call riers extract 50 near Rochester. tale tron drift state and at Jo: esta‘elisl'ments it. rather distant. Compare: immune and to the State‘s e tracted, and pri hetstries in 19 all talcum”,- million.17 and 16 are locally called mine-quarries?“ In addition to these minerals, quar- riers extract soapstone at Chester, kaolin near Bristol, verde antique” near Rochester, and sand and gravel in various places; miners extract talc from drift minesl6 near Simonsville in the southern part of the state and at Johnson in the north. The output from these many mining establishments moves by truck or rail to nearby, but in a few instances rather distant, manufacturing establishments for processing. Compared to other segnents of Vermont's economy--as for example agriculture and general manufacture--minerals do not stand out as basic to the state's economic structure. The sales value of all minerals ex- tracted, and prior to manufactural processing, of the Vermont mining industries in 1962 is estimated at $25 million. The gross income from all agricultural products for that year in Vermont was more than $125 million,17 and the estimated gross value of all manufacturing was over luQuarrying refers to operations that rmove stone, clay, sand and gravel or other rock material from its natural position by open-pit methods. In contrast, mine-quarries, as in the Rutland area, represent underground operations of drifts radiating from vertical-shaft entries. ”Soapstone is the compact and impure form of talc and occurs as a compound of magnesium, silicon, oxygen, and Indrogen. Kaolin is a hy- drated aluminum silicate usually resulting from the decomposition of feldspar. Verde antique, a mixture of inrdrous magnesium silicates and carbonate materials, can take a high polish and is sold as a marble. See William J. Miller, ~. ‘ W (5th ed. . New York: D. Van Nostrand 00., Inc., 191+9). pp. #62. 1:65: and Richard M. Pearl, Rock; (New York: McGraw-Hill Book Co., Inc., 1957), p. 133. l6Drift mines are tunnels driven at an oblique or right angle to a hillside or parallel to the course of a vein or rock material. ”0.3.. mean or the Census. W W (84th annual «1.). p. 635- $300 i'lll'ion.]'a the, for nelthe of the individn: the extraction i I compa. limited by the trates the rela Siite of Pennsy Iem, and stone lent, put-018W I me: and 59" ‘v' lent, salt, iro value of only 3 K more tries on vemm Sane States f0 means,“ of in compet: 5n v .. ‘ & kt Mair 1? $300 million.” Such a comparison, however, must be put into perspec- tive, for neither the economy of the United States in general nor many of the individual states has a major share of its income derived from the extraction and manufacture of minerals. A comparison for the year 1962 of the total value of all minerals produced by the mining industries in Vermont and selected states illus- trates the relative importance of minerals to Vermont's economy. In spite of Pennsylvania's large output of coal. cement, natural gas. petro- leum, and stone commodities. that state produced minerals valued at only $9 more per capita than did Vermont. Michigan with its iron ore, ce- ment. petroleum, and copper fell short by $7 in matching Vermont's fig- gure; and New York's production value of important minerals such as ce- ment, salt. iron ore. and stone accumulated a per capita production value of only $llI--$50 less than Vermont's figure (Table l). A more appropriate way to view the impact of the mineral indus- tries on Vermont's economy is through a per capita comparison with these same states for their production of competing stone products. Per capita comparisons of the total stone sold or used by producers19 in Vermont and in competing states for 1962 shows that Vermont led over Georgia, New York, Maine, Pennsylvania. and Michigan (Table 2). Detailed comparisons of several specific types of stone sold or used by producers also show Vermont leading. If we compare Pennsylvania, the largest slate producer in the United States, we find that in 1961, lBLetter from Maxwell R. Conklin, Chief. Industry Division, Bureau of the Census. U.S. Dept. of Commerce, Washington. D. 6.. June 17. 1964. 19The term ”sold or used” refers essentially to the value of sales by quarriers, quarrier-processors. and processors (of quarry minerals). 18 TABLE 1.--Comparative per capita values of all minerals sold or used in selected states in 1962 Value Sold or Usedb (millions of Per Capita Value State Populationa dollars rounded) (dollars rounded) VERMONT 389,881 25 64 Georgia 3,943,116 107 27 Pennsylvania 11,319,366 823 73 Maine 969.265 15 15 Michigan 7.823.194 4“? 57 NewVYork 16,782,300 242 l“ aData obtained from: U.S., Bureau of the Census, ansus "no ' ‘eg. .00 g .e ‘:_ ;' 1.!!“345‘ e 0;“ ‘e 9.. - ‘g- bU.S., Bureau of'Mines, Mineral§_1gazhggki_412§2, Vol. III. TABLE 2.--Per capita value of all stone sold or used by producers in selected states in 1962 Value So d Per Capita or Used Value State Populationa (in dollars) (in dollars) VERMONT 389,881 19,815,000 50.83 Georgia 3.943.116 02,037,000 10.66 Pennsylvania 11,319,366 82,087,000 7.23 Maine 969,265 0,209,000 4.39 Michigan 7,823,194 29,055,000 3.74 New York 16,782,304 “7,256,000 2.82 aData obtained from: 0.5., Bureau of the Census, mm e c '1'. ' bData obtained from: Perry Cotter and Nan C. Jensen, W. Vol. 1% Sims. U-S- Bureau of Mines (Hashington: 0.8. Government Printing Office, 1963), p. 2. on a.per capita basis, it sold or used $3.29, and Vermont during the same year sold or used $4.73. With a total value of $5,119,551, Vermont in 1961 led the nation in dimension granite sold or used. Vermont pro- duced a per capita value of $13.13; the second largest producer, Georgia, accrued a total per capita value of only $1.09. Per capita, limestone producers in Vermont sold or used an amount over twice that of producers 19 in states such as Michigan, Ohio, and New York--states usually considered large limestone producers (Table 3). Although one might argue that what TABLE 3.--Per capita value of varied stone types sold or used by producers in Vermont and other states in 1961 r Value Sold Per Capita or Usedb Value Stone Type Populationa (in dollars)» (in dollars) Slate VERMONT 389,881 1, 844,147 4.73 Pennsylvania 11,319,366 3, 445, 385C 3.29 Dimension Granite VERMONT 389,881 5,119, 551 13.13 Georgia 3,943,116 4, 292, 474 1.09 Minnesota 3,413,864 3,090,098 .91 Crushed and Broken Limestone and Dolomite VERMONT 389,881 ' 4,088,607 10.49 Ohio 9.706.397 47,923,866 4.95 Michigan 7,823,194 29.781.604 3.82 New York 16,782,304 36,312,711 2.16 3Data obtained from: U.S., Bureau of the Census, U.S. Census 9f Population: 1960, United States Summary of Detailed Characteristics. bData obtained from: Perry Cotter and Nan C. Jensen, Minerals Xearbgok: 1961, Vol. I: Stone, U.S. Bureau of Mines (Washington: U.S. Government Printing Office, 1962), pp. 6, 20. cData obtained by letter from Perry Cotter, Division of Minerals, U.S. Bureau of Mines, washington, D. C., May 15, 1964. really matters is the total production in a given state, this contention does not take into account the relative impact that these industries have on that state's economy. The $36,312,711 value of limestone sold or used in New York simply does not have the same importance to its economy as the $4,088,607 value sold or used in Vermont does to Vermont's economy. On a dollar basis these mineral industries have more influence on Vermont than do similar industries on the economies of many other states. As of December 1964, slightly more than 4 percent of all employees (excluding agricultural workers) in Vermont were in the mineral mining 20 and the mineral manufacturing (processing) industries. W 0 o':- =°9_°.'|v. e 0 . '. =9.:a_'.‘0 0 o e 191111-61. .. . e- e- 20 H . 1° 9‘ 0 0- ‘1 0 h - ' 9-11 9 o v = i9.."i.._“'. ‘_- ._ N .a an * -- " a ' ‘ ,1 f an, .‘n. - - WWZO Many areas and groups of cities benefit from these mineral mining and manufacturing industries through a stregthened economy because of the employment opportunities they create directly and indirectly (Fig. 5). Satellite industries such as those making equipment for mining, quarrying, and stone finishing give added employment opportunities. Eight separate firms in the state produce mining and processing equip- ment, and they anploy approximately 250 men. Four other firms have part of their production line in these materials.21 Although some areas bene- fit from mineral industries merely as a supplanentary income source, other areas are heavily dependent on the jobs and income associated with them. The total employment in mineral mining and manufacturing industries on a county basis varies considerably (Fig. 6). The activities of the slate, marble, granite, and asbestos mining and manufacturing establish- ments exert a significant influence on local Vermont economies, primarily because of their concentration and size. Lamoille, Rutland, and Wash- . ington Counties have large numbers of anployees active in mineral mining establishments (Fig. 7). Comparisons of workers employed in mineral 20Vermont Department of Deployment Security, W3: Rams. II (January. 1965). 3- 256mm Development Department. We: W (1964-1965 ed.: Montpelier: Industrial Division of the Vermont Development Departnent, 1964), pp. 34—35. 21 73° 72‘30‘ 712° 0 I) O OSwanton Newport Isle Lo Motto : Eden Mills .Croflsbury Johnson 30 a lin ton O , Hordwick 30 9 o meiston O Woodbury o 5. Burlington deohnebury O oAdamant Hinesburqo Waterbury . Montpelier Montpelier 80”. N tht‘ Id (S) R t B ."| or no 0 . yegoe “ o , _ . E. Barre Granitewlle Websterville O Williamstovln O Middlebury Rochester oBethel 9 Florence p 55.0." o rector White , we ’I/ Rutland River Jot. Fair . 0 ° N o I; Center Rutland N. Poultneyp 0'0” -4 Poultne Q q? ”’0 S.Poultney,o ' _ . Readin:o WT; OSMollinqtord andsor Powlet Perkinsville ' s W.Powlego ° oDonby Gessettso Sp‘ f‘ Id NUMBER OF VERMONT rung to ' s, M... . a. .. MINERAL WORKERS 0 es r BY CITY l964 Moonchester Ctr. 0 Arlington OS. Shottebury 9 I? 3.0 O Brottleboro - Bennlnqton 0 W'“ 713° rzfso' 7? Ec.E. Source: Data Compiled from Vermont Directory ot Monutoctured Products 09644965). Figs 22 75° 72°Tso' 7§° @ a Q ORLEANS FRANKLIN @ ssssx 4‘. LAMOILLE @ 44g 30' 30' CALEDONIA ‘39 WINDSOR 43. o RUTLAND TOTAL NUMBER OF MINERAL WORKERS @ IN VERMONT BY COUNTY / ° l964 WINDHAM BENNINGTON (L) I? 310 Miles L e x 71' 7290' 7? M Source: Data Compiled from Vermont Directory of Manufactured Products (l964—l965). Fig.6 23 7§° 72‘3d 75 @ Q ORLEANS FRANKLIN 133° // esssx 33’ sto/ @ I 33°“ CALEDONIA ADDISON ORANGE 143* wanosoa is ,3. 30' 3d‘ RUTLAND g 1 NUMBER OF MINERAL ’ MINING WORKERS @ IN VERMONT BY COUNTY @ I964 WINDNAM ssnumeron . 9 I? 39 Miles 1 79° 7296 1r we Source: Doto Compiled from Vermont Directory ot Monutoctured Products (I964—I965l. K Fig.7 :1 Li 24 manufacturing industries with those employed in all manufacturing indus- tries show that these same counties have a considerable dependence on mineral industries. Lamoille with 14 percent, Rutland with 41 percent, and Washington with 52 percent show the largest dependence (Fig. 8). On the other hand, counties such as Windsor and Chittenden actually have a large number of workers in mineral industries but do not depend primarily on these because of their large number of employees in other industries. Other counties whose economies are dominated by agricultural or forestry activities such as Essex and Orleans or by manufacturing such as Windham are not greatly concerned with any of Vermont's mineral industries. Summary and Conclusions Mineral industries have long been important to Vermont's economy. Because of depletion, competition, and changing market demands, many of tho so mineral industries once important to the state are no longer ac- tive, but the problems faced by these industries are frequently evident in Vermont's present mineral industries. Although Vermont's mineral industries are not the largest contribu- t°rs to the state's economy, they are an important part. In 1962 the estimated gross production value of mineral mining industries totaled approximately $25 million. Vemont leads the nation in the production of dimension granite with a per capita value of $13.13 in 1961, but Georgia (the country's second largest producer) had a per capita output °f only $1.09. Even though some states annually produce larger quanti- ties of stone than does Vermont, the income they receive from these sources is not as proportionately important. Many areas of the state have large numbers of their workers 25 «a 30 ADDISON ORANGE . 6&0 m... VERMONT WORKERS IN m... MINERAL MANUFACTURING COMPARED WITH TOTAL MANUFACTURING WORKERS BY COUNTY I964 : : o I O sENNINeTON g 1" is .I’ WINDHAM as $94 5“ Source: Data Compiled from Vermont Directory of Manufactured Products “9644966), and County Business Patterns, First Ouarts_r, I962. Fig.6 9: ~\ V‘ .. .t. we 26 active in mineral establishments. Approximately 4 percent of all the state's employees (excluding agricultural workers) are employed in mineral industries. These activities also help to support satellite industries such as those producing mining and processing equipment. Rutland, washington, and Lamoille Counties are especially dependent on mineral industries, but some such as Essex, Orleans, and Windham are not concerned with mineral production to any great extent. H .‘anr—r-fij - CHAPTER III ESTABLISHMENT SIZE AND BUSINESS TURNOVER Based upon number of workers employed, Vermont's mineral estab- lislments are on the average small. These mineral establishments also have a high turnover rate. Although mall size alone does not dictate business failure, management problems common to most businesses such as maintaining credit control and stock reserves, instituting capital im- provaaents, and acquiring raw materials and markets may be accentuated among smaller producers. Unfortunately neither the internal functioning of businesses can be easily determined nor can the reasons for business turnover always be specifically identified. Business turnover may stem from poor management1 and financial illiteracy,2 lack of knowledge in a particular field of business, severely competitive market conditions, or from a combination of these. Whatever the reasons, the results are too often the same--financial waste and inefficient use of human resources. Establishment Size In workers employed, the size of Vermont's individual mineral establishments is, as a whole, below the national average. As of 1958, 18» for example: willie: N. Kinnard and Zenon S. Malinowski, W. Management Research Summary NO- 4 (Washington, D. 0.: Small Business Administration, 1961), p. 1. 28mm J. mink. W (New York: Simmons-Boardman Publishing Corporation, 1962), pp. 2-4. 27 flu IHV Rel 28 the average number of workers maployed in all stone, clay, and glass manufacturing establishments in the United States was 37.3 The total number of mineral establishments presently active in Vermont is 232, plus or minus 2. There are 190 mineral manufacturing establishments that on the average employ 18 workers each. Mining establishments num- ber 42 and have an average work force of 29 each.“ Slate establistments average approximately 12 anployees: but of a total 28 establishments controlled by 18 firms,5 four have less than 5 workers each. Although there are 8 separate firms processing marble and marble pignent products in the Proctor-West Rutland area, 6 of these producers together employ only 25 to 30 men. The other 2 firms-~the Green Mountain Marble Company and the Vermont Marble Company-~employ approximately 1,300 men, and most of these (1,080) work for Vermont Marble. The granite industry best illustrates the mall size of the state's mineral establishments. About 140 establishments under the con- trol of 125 different firms employ 1,850 workers. Together, these 140 establishments average between 13 and 14 workers each, but individually 21 average only 7 employees each, and 43 have a worker uployment aver- age of only 2. A large portion of these mall units are manufacturing 30.3.. Bureau of the Census. W W (84th annual «1.). p. 778. “Calculated on the basis of personal interviews: estimates made from data contained in Vermont Development Dept., W W (1964-1965 ed.: Montpelier: Industrial Division of the Vermont Development Dept., 1964): and data obtained by letter from Gordon R. Ladd, Chief, Research and Statistics, ant. of Deployment Security, Montpelier, Vt., Oct. 25, 1963. 5One firm may have several establishments. 29 establishments operated as proprietorships or partnerships. These granite manufacturers do little else except finish or letter monuments; they must purchase every piece of stone from one of the three quarry operators in the region. When prices fluctuate radically, these firms suffer first and to the greatest degree. It is these firms that are responsible for a large share of business mortality in Vermont's mineral industries. Business Turnover New firms may open during periods of economic prosperity with only small amounts of capital; but as professor Kurt Mayer of Brown University has said, “The question is not how much money it takes to go into business but how much it takes to stay there.“6 The high turnover rate among Vermont's small establishments re- flects the ease of entry into some of these mineral industries such as granite, slate, and marble. One or two men can, with some knowledge of the work in addition to a few hundred dollars, set up a small slate mill which turns out tile and flagging or a marble shop which finishes monu- ments. Because production of most structural slate or marble requires access to large amounts of raw material, stockpiling of finished products, and a large capital outlay for milling equipment, there are few producers. Only four of the eight marble producers in Vermont make structural itans of am kind, and two of these are confined almost exclusively to producing a material called “splitface” marble--a product used as facing on build- ings. Producers make most splitface marble from pieces too defective 6"Small Business as a Social Institution," W. XIV (Septalber. 1947): 3380 30 for use in monuments or for high-quality interior and exterior panels.7 The lack of diversification of products makes many of these small producers especially susceptible to market fluctuations and declines in the general economy. Although reasons for business difficulties and.mortality in any one establishment are hard to determine, a major portion likely stem from poor'management. Whatever the reason, Vermont's mineral industries are no exception to the problem. One study shows that from 1955 to 1957 stone, clay, and glass manufacturing and mining establishments in Vermont had a total turnover rate of 31 percent. In 1955 there were 199 estab- lishments and in 1957, 197--a minor net change; but 30 openings and 32 discontinuances occurred for a total turnover of 62. Most of this turn- over occurred among the smaller establishments (Table h). A comparison of granite firms listed in the 1961 and 196# edi- tions of the Vermont Development Department's 121W Ezgdngtg indicates the size of establishment (same as the firm in.most cases) most affected by turnover. The Dizggtgzy for 1961 lists 127 sepa- rate firms. From 1961 to the beginning of 1964 nine openings and 11 dis- continuances occurred. These figures--a total of 20--give a turnover rate of nearly 16 percent. Of those discontinuing operation, 6 averaged 7 employees, and 5 averaged only 2 employees. No discontinuances oc- curred among firms with more than 9 uployees. Each of the 9 firms 7Field observations at Green Mountain Marble 00., w. Rutland, Vt., Sqat. 23, 1963; J. P. Gawet 3: Sons, Center Rutland, Vt., Dec. 13, 1963; Bowker 8: Son, W. Rutland, Vt., Dec. 2, 1963; White Marble Shop, N. Rut- land, Vt., Oct. h, 1961+: Vermont Cut Slate 00., Fair Haven, Vt., Jan. 29, 1964: Baker Slate Tile Co., Poultney, Vt., Jan. 2, 1964. 31 opening during this period employed, on the average, only 2 workers.8 The large concentration of business turnover in this group indicates a considerable financial waste in this industry. To put it bluntly, a plethora of small and undiversified establishments are competing for what almost every granite producer interviewed has described as a stable market dmand for monuments.9 TABLE 4.--Turnover in Vermont mineral mining and manufacturing establishments, 1955-195]: Size of Establishment by Total Turnover Number of EMployees Number 0-4 42 5-15 14 16-25 4 26-50 0 51-75 1 76-100 1 101-200 0 201-300 0 301-500 0 501- .Q Total 62 aCompiled from data contained in: Vermont Development Commission, W W 1255:1251, Economic Research Series No. 2 (Montpelier: Vermont Development Commis- sion, 1958), pp. 16-17. From 1961 to 1964 the slate industry experienced an even higher establislment turnover rate than did the granite industry during the same period. The slate industry in 1961 had 28 establishments under the ' 8Vemont Development Dept.. W M (1961-1963 and 1964-1965 eds.; Montpelier: Industrial Division of the Vermont Development Dept., 1961 and 1964). ' 9It should be noted that this rate may be slightly lower than the true turnover rate because some firms might have opened and shut their doors at some point of time between the two publication dates. 32 ntrol of 19 firms. From 1961 to 1964 this industry had 6 openings and closings for a total establishment turnover of 12; this resulted in an tablishment turnover rate of nearly 43 percent! There was a net change minus 1 in the number of firms. Three of the 6 establishments opening ring this period averaged only 2 employees, 2 averaged 7 employees, :1 l averaged 15. Two of those discontinuing operations averaged only employees, 3 averaged 7 anployees, and l averaged 33.10 Summary and Conclusions Vermont's mineral establishments are smaller than the national erage. These small establishments have relatively high turnover rates en compared with larger ones. The granite and slate industries illus- ate especially well the small size and the high turnover rate among rmont' s mineral establishments. loVermont Develoment Dept. (1961-1963 and 1964-1965 eds.), 1.911- CHAPTER IV GROWTH AND PRODUCTION FLUCTUATIONS What has been the growth pattern of Vermont's mineral industries? Do they prosper only during periods of relative economic prosperity? What elements in the general economy influence the health of the many mineral industries in Vermont? Growth A study of New England and New York's natural resources, released in the middle 1950's, claims that the nonmetallicl mineral industries in these areas are shrinking (declining). This opinion is based upon the failure of these industries to recover after each succeeding period of overall economic decline nationally.2 Although this statement may be valid for the New England-New York area collectively, a detailed analysis does not show this to be true of Vermont's nonmetallic mineral industries. The mineral mining industries of Vermont have not been declining but neither have they been showing any significant growth. From 1927 to 1962 the state's mineral mining industries as a whole experienced an average annual growth in sales of only .37 percent (Table 5). The stone 1Includes such minerals as limestone, slate, marble, granite, clay, talc, soapstone, asbestos, and sand and gravel. 2New England-New York Inter-Agency Committee, W (Special Subjects Regional, Mineral Com- modities, Part Two, Chapter xmx), Vol. III [1954]. p. XXXId-l3. (Mimeographed. ) 33 34 TABLE 5.--Annua1 growth rate over previous year of all Vermont mineral mining industries, 1927-1962 (in millions of dollars) Percent Growth Total Production Value Adjusted over Previous Value fer to 1947-1949 Year (Based on Year All Mineralsa Dollarsb Constant Dollars) 1962 25.0 18.8 + 6.8 1961 24.3 17.6 + 1.7 1960 22.9 17.3 - 1.7 1959 23.4 17.6 + 6.0 1958 21.4 16.6 + 1.8 1957 2109 16.3 '12.“ 1956 23.1 18.6 - 3.1 1955 23.9 19.2 +13.0 195a 2005 1700 "’ 102 1953 20.3 17.2 +16.2 1952 17.9 14.8 - 9.2 1951 18.5 16.3 - 6.3 1950 18.6 17.4 + 4.8 1949 17.4 16.6 + 5.7 1948 16.0 15.7 0.0 1947 14.7 15.7 + 9.0 1946 12.1 14.4 +38.5 1945 8.2 10.4 + 3.0 1944 7.7 10.1 +17.4 1943 6.4 8.6 -l4.0 1942 7.3 10.0 -12.3 1941 8.1 11.4 +14.0 1940 7.0 10.0 0.0 1939 7.0 10.0 +11.1 1938 60“ 900 - 503 1937 7.0 9.5 no.5 1936 6.2 8.6 +21.1 1935 5.1 7.1 + 4.4 193“ "'09 6.8 -2207 1933 508 8.8 “1209 1932 6.4 10.1 -18.5 1931 8.4 12.4 -22.5 1930 11.6 16.0 -29.9 1929 14.6 20.1 + 1.5 1928 14.6 19.8 - 3.9 1927 14.7 20.6 +_z,_4_ Average Annual Growth Rate .37 aCoupiled from: U.S., Dept. of the Interior, Wm ' - , Part II: N2n:flfll§l§3 and U.S., Bureau W of Mime. We Vol. I and 1252:1262. Vol. III- bCalculated from wholesale price indexes for nonmetallic minerals, structural, contained in: U.S., Bureau of the Census, Hiatgzigal_fitatis; WM (1960). p. 117; and data obtained by letter from.Maxwe11 R. Conklin, Chief of Industry Division, Bureau of the Census, Washington, D. C., Feb. 20, 1964. 35 industries, including establishments quarrying dimension stone, crushed and broken stone, and some establishments with their dominant activity being the dressing of stone (normally included in manufactures)3 have, however, during the years 1927 to 1962 experienced more growth-~1.06 per- cent (Table 6). Perhaps the most obvious feature concerning the growth.pattern shown in Table 5 is its irregularity. The decline in production value of almost 30 percent from.1929 to 1930 is certainly impressive but per- haps expected as is the advance of over 38 percent from 1945 to 1946. These variations are explained with relative ease as the beginning of the Great Depression and the end of Wbrld war 11. But harder to explain are the many variations of’growth.and decline alternating annually. Ac- tually, short term periods of growth and decline are not vitally impor- tant. Of'more importance are the answers to these questions: (1) Why has the overall growth not been greater? (2) What influences help create the more prolonged periods of growth and decline? The answer to the first question must wait until later chapters because within the answer lies the central focus of this thesis. The answer to the second ques- tion illustrates one of the many difficult problems facing most of Vermont' 3 mineral industries. Production Fluctuations Few, if any, industries are independent of others. Some indus- tries are affected by fluctuations occurring in one closely related 3A large portion of'Vermont's mineral manufacturing establish- ‘ments are included within the cut stone and stone products industry. 36 TABLE 6.--Annua1 growth rate over previous year of Vermont stone indus- tries, 1927-1962 (in thousands of dollars) Percent Growth Total Production Value Adjusted over Previous Value of to 1947-1949 Year (Based on 'Year Stonea Dollarsb Constant Dollars) 1962 19,815 14,987 + 5.9 1961 18,715 14,156 + 7.9 1960 17,444 13,120 + .5 1959 17,372 13,061 +11.3 1958 15.789 11.730 +38.“ 1957 11.404 8.473 - 5-9 1956 11.622 8.969 ‘ e7 1955 11,061 8,906 +31.8 1954 8,178 6.756 - 9.4 1953 8.850 7.496 +30»? 1952 6,017 5,736 -10.0 1951 7.254 6.372 -47.2 1950 12,910 12,076 + 3.2 1949 12,201 11,704 - .7 1948 11,990 11,781 - 4.1 1947 11.539 12,288 + 7.4 1946 9.630 11,437 +40.1 1945 6,456 8,162 + 3.7 1944 5.976 7.872 +17.0 1943 5,064 6,728 - 7.6 1942 50491 70275 '1400 1941 6,112 8.572 +14.1 1940 5.237 7.514 ' 2-6 1939 5.360 7.713 +11-0 1938 4.879 6,862 -10.8 1937 5,648 7.695 +10.1 1936 4,903 6,893 +21.8 1935 4.019 5.613 + 3-0 193“ 3'902 5,449 '27'1 1933 5.002 7.475 ‘16-3 1932 5.664 3.933 ‘20-1 1931 7.560 11,183 -22.5 1930 10,446 14,428 -20.3 1929 13,141 18,100 - .5 1928 13,421 18,184 - 2.7 1927 13,325 18,662 + ‘_¥ Average Annual Growth Rate 1.06 aCompiledfion: U.S., Dept. of the Interior, M1ngzgl_flgagnzgg§ W. Part II: W: and U.S.. Bureau 01‘ Mines. WW. Vol. I and 1952:1962. Vol. III. bCalculated.fromwholesale price indexes for nonmetallic minerals, structural, contained in: U.S., Bureau of the Census, W . (1960): P. 117; ‘GUQd data obtained by letter from Maxwell R. Conklin, Chief of Industry Division, Bureau of the Census, Washington, D. C., Feb. 20, 1964. 37 industry--related as producers and suppliers. Both the stone mining (primarily dimension stone)“ and processing (primarily cut stone and stone products) industries illustrate especially well the problem of one industry's dependence upon another. A large part of the stone sold by the quarriers is purchased by cut-stone producers. The building industry purchases a large part of the material cut-stone producers sell. As a result, this industry's immediate con- dition tends to influence the stone quarrying and processing industries' econmny. The stone industries during the years 1927 to 1962 experienced muchumore pronounced cycles of growth and decline than did the mineral industries of the state collectively, because, together, the state's mineral industries have a wider market base. The stone producers' de- pendence on the building construction industry is illustrated in Fig. 9. In 1926 slightly over $18 million of stone was sold or used by Vermont producers; over $18 billion was spent in building construction. Then, a steady decline occurred in construction until 1933 when builders spent only a little over $3 billion for construction. Stone sold or used in Vermont also showed, until 1934, a constant decline; during that year slightly less than $5,500,000 was sold or used. The late 1930's saw a slight recovery in the building industry with a somewhat concomitant rise in stone sales; but during Wbrld War II, building activities were so restricted that the marble industry converted to processing metals, wood, and mica. Eighty percent of the Vermont Marble Company's sales bDimension stone is a classification used to denote materials cut or otherwise worked to fairly accurate measurements (rather than crushed or cast). ZBL 428 26- -26 - ‘l 24- ‘24 ’ 3'3}. ‘ _ uHinq ,_ 22 Construction —o ‘ 22 _ (billions of dollars) 20 - - 20 IB — “H — l8 l- a '6 — Vermont -' '6 r Stone Sold Ix - _ X 0- or Used " _ M (millions at .x/ '4 - donors) /6 ‘ l2 '- ‘XAX’X x -‘ '2 lo:— \t ' H/ 3:0 . \ x _ a /\ " /x 8 l\ x\f x\ ‘ \’ x x / x ‘ 5.. “l ‘x —6 4r- —4 l’ .. 2.. -2 llllll‘llnallllll‘lllllllllllLllllLAUJlllllnlfl l9l5 I920 |925 |930 l935 I940 l945 l950 l955 l960 |965 Fig. 9.--Tota1 value of United States residential and non- residential buildings constructed compared to total value of stone sold or used by Vermont producers, 1915-1963, in 1947-1949 Prices. (Construction figures calculated from data contained in U.S., Dept. of Commerce, Construction Volume and 09535: A §tatistig§1 Supple- ment to anstrgction Revigg, 1215:1256, pp. 40-42 and Construction Review, Sept., 1962, pp. 12-14 and June, 1964. PP. 13-15; and from data obtained by letter from L. N. Blugerman, Director, Building Materials, Construction Division, U.S. Dept. of Commerce, Aug. 13, 1964. Data for stone obtained from U.S., Dept. of the Interior, Miners; Resgurces of the United States: 1226-1231, Part II: Non- metals: U.S., Bureau of Mines, Minerals Yearbook: 1232-1251, Vol. I and 1252-1262, Vol. III. Adjustment data obtained by letter from Maxwell R. Conklin, Chief of Industry Division, Bureau of the Census, Feb. 20, 1964; and from wholesale indexes for nonmetallic minerals, structural, contained in U.S., Bureau of the Census, gistorigal Statistigs 9f the Uniged §tgtgsz Colgnigl Times to 1252, p. 117.) " r "5 Juan-'5 39 were in these products.5 What occurred during the post-war period will be discussed shortly. Nondisclosure rules deter a precise analysis of the relationships between the building and stone industries, but the slate industry which had until 1961 an adequate statistical coverage for the annual value of stone sold can be used for purposes of comparison. Even here data for total volume (tonnage) are not available. In spite of this limitation, because it has long produced for the structural stone market, the slate industry, considered nationally, effectively illustrates the dependence of a Vermont stone industry on the building industry (Fig. 10). Building restrictions during World War II reduced drastically the dmand for slate shingles and granules, and for millstock,6 a mate- rial used primarily in nonresidential buildings. Recovery followed when construction resumed after the war's end. From 1948 to 1955 slate mill- stock showed a steady sales volume increase. A slight drop in sales occurred from 1955 to 1956, but advanced again in 1957. From 1950 to 1957 a sharp decline in sales of roofing shingles occurred. Although Bureau of Mines' data are not available for verification, there has been, during the past two years, according to every producer of millstock and roofing shingles interviewed, an increase in demand for both of these 3. O 8‘ Free :3 _o 3. - 4‘ . Burlington, Vermo 5E1bridge 0. Jacobs, ;~ nt: Press Printing Co., 1947). P. 94. 6Millstock includes manufactured slate itms such as blackboards, walls, steps, sills, and wainscoting. For detailed descriptions of various classifications of stone commodities see: L. W. Currier, - , U.S. Geological Survey IhaaLea1a_Annraisa1_af_Dinensicn_§lans_nmnasita 3111ch 1109 (Washington: U.S. Government Printing Office, 1960). 40 gEX NUMBERS, l94_7-49 AVERAGE=IOO l ARootinq caucus ./' \' ‘ /I\. /‘/ \Nonresidentiol buildings / 0A . [the], 'I‘ " A] /\ .‘ l . - i . ° I N! "“ \R ° ’\ l \,\ \ [/New dwellings \ l \ J M! \ \ O i l935 l938 I94l l944 I947 |950 |%3 l956 l959 Fig. 10.--United States sales of roofing slate and millstock ompared to number of new dwelling units, and value of certain new non- esidential construction, adjusted to 1947-1949 prices, 1935-1957. Redrawn from: D. 0. Kennedy and Nan C. Jensen, Minerals Yearbook: 251, Vol. I: Slate, p. 4.) 41 slate products, especially roofing shingles.7 If the trends in building construction and the sales of all stone and sales of roofing slate are observed carefully as illustrated in Figs. 9 and 10, a rather odd pattern is noted. In spite of an ex- panding building industry during the years 1947 to 1957 the total sales value of slate and other stone decreased. Why should this divergence of the ratio occur? The inverse relationship stems primarily from two factors-«namely, competition from substitute materials and the type of buildings constructed. Along with the building boom of the post-war years, mamr new structural materials came on the market that could easily substitute for stone. New kinds of roofing replaced slate shingles, and concrete substituted for other types of dimension stone. Glass, metal, and synthetic materials went to build structures that would have formerly been made of stone. The result was a declining market for stone products. The second reason for the divergence is that, initially, the major por- tion of new construction was concentrated in residential building (Fig. 11): and a major portion of dimension stone sold is used in non- residential building. The mall amount of nonresidential building, along with the decline in denand for roofing shingles in residential building, accounted for a major portion of this inverse relationship-~an advancing volume of total building construction but a declining volume of stone sold. Although the Inter-Agency Report contends that the stone industry 7Interviews with Frank Graziano, Co-owner, Fair Haven Slate Co., Hydeville, Vt., April 17, 1964: William Mahar, Gen. Supt., Vermont Structural Slate Co., Fair Haven, Vt., March 28, 1964: A. B. Potter, Owner, AB Potter Slate Co., Poultney, Vt., Jan. 22, 1964: William Prehoda, Co-owner, Prehoda Brothers Slate Corp., Granville, N. Y., Jan. 16, 1964. 42 Billions of Dollars I 2 3 ‘i 5 ES'T 8 EDICJH l2|3 Mil5 K5r7l8 EDZOZN 63 'IIIIII[IIIIIIIIIIIIIIIIIIIIIIIIIIII 62 'lIIIIIllllllllllllllllllllllllllln 5| 'llllllllllllllllllllIlllllllllll. I9 6 0 ”111111111: llllllllllllllllll‘ 59 'Ill'llll'l'llllI'll'l'l'lI, 58.ummnuunnuwwnnuznumnuzn 57 ’lllIlllllll'll'lllllllllllllllA 56 'lllllllll'lllIlllllllllllllll |955v1.nu'1.nuu1.nuvnrllnummnuw 54 IIIII'll'lllllllllll'llllll. 53 llIIIIIIIIIIIIIIIIIIIIIII 52 'I'lllllllllllllllllllll 5' 'III'I'IIIIIIIII'IIIIII '950 'Illllllllllllllll 49 IIIIIIIIIIIIIIIA 4 8 IIIIIIIIIIIIII. 47 'IIIII'I'IIII 46 WIlllllllllllll - Residential I945 "1:111:11 BUilding 44 In!!!" Ill/l Nonresidentiol 43 1,11,11,11; BUI lding 4 2 rllllllllllllllllllllll. l: in | 9 4 7 _, l9 49 p r 5c es] 4' VIIIIIIIIIIIIIIIIII. I 9 4o IIIIIIIIIIIA FCE l 2 3l‘l 5 €5‘7 8 SilC)ll|2l3uFll5 K5|7l8 E9202“ Fig. 11.--United States total value of residen- tial and nonresidential building construction compared for years 1940-1963, in billions of dollars. (Calcu- lated from data contained in U.S., Dept. of Commerce, Construction Volume and Qosts: A Statistigal Supple- ment to Construction Revieg, 1215—1256, pp. 40-42 and Construgtion Review, Sept., 1962, pp. 12-14 and June, 1964, pp. 13-15; and from data obtained by letter from L. N. Blugerman, Director, Building Materials, Construc- tion Division, U.S. Dept. of Commerce, Aug. 13, 1964.) 43 of New England is "shrinking,“ present indications are that Vermont's stone industry is holding its own, and since 1957 has, in fact, been steadily increasing its value of sales. Much of this increase is due to added residential building construction; its total value has advanced from $13. 5 billion in 1957 to nearly $16.7 billion in 1963. If there is a continued increase in the value of nonresidential buildings con- structed, the demand for certain stone products, such as shingles, should, in the future, be maintained if not increased. Architects are return— ing to the use of stone in nonresidential building, and recently devel- oped production techniques in the slate and marble industries should help increase their sales of millstock to this market and perhaps even help them penetrate residential building markets. New cutting tech- niques enable producers to cut marble into thinner sections for use as interior and exterior veneer. These thinner pieces allow more surface coverage with the same volume of marble; consequently, the actual volume of stone needed is less and transportation costs are reduced. Slate producers have developed prepackaged units of thinly cut floor tile that are handy for the tile setter. Materials formerly discarded as useless are now used in these small floor tile. Such developments and trends are very important. In fact, if Vermont's stone and other mineral industries are to maintain their posi- tion in very competitive markets, they must continue to explore new uses for their products and to develop modifications of old products. This challenge is so important that the entire subject of opportunities open to the mineral industries of Vermont is considered under a separate chapter. 44 Summary and Conclusions Vermont's stone industries have been subject to pronounced variations in growth and decline in annual sales because of their de- pendence upon the building industry. The slate industry illustrates this dependence especially well. What will the future growth rate be like in the state's mineral industries? Are they to continue prospering and declining in cyclic fluctuations along with the general economy or particular industries such as occurs in the stone industries in conjunction with the building industry? It is difficult to predict future conditions; and yet con- sidering past experience and the continuing dependence of’many of these industries on one or two markets, the answer is yes. But through in- creased efforts at product diversification, the development of new uses for products, and penetration into established markets, Vermont's mineral industries can ease the cycles of prosperity and depression that they have so long experienced. 'Nith added efforts in these directions and with careful consideration of topics discussed in later chapters, they can surpass their present growth rate. CHAPTER V PRODUCTION EFFICIENCY Efforts to minimize costs and to maximize profits are the pri- mary tasks of businessmen in all industries. The primary tasks of Vennont's mineral producers should be no exception to this rule. A failure of the state's mineral producers to recognize and practice this principle could lead to a decreasing importance of mineral industries to Vermont's economy. Of course, most of Vermont's mineral producers rec- ognize this principle in its broadest form, but many may not know how to most effectively implement it. The high rates of business turnover among Vermont's mineral establishments as discussed in Chapter III may reflect this lack of knowledge. The task of minimizing costs and maximizing profits requires that Vermont's mineral producers be familiar with and recognize the im- portance of implementing good techniques of personnel management, col- lective bargaining, record keeping, and cost control. A knowledge of how to most effectively utilize available transport systems, capital, technoloy, and research for growth and expansion is also important. Al- though expertness in every area of business management may be out of reach of many of Vermont's small mineral producers, a familiarization in each of these parts of business managanent is imperative for the most efficient utilization of Vermont's mineral and human resources. “5 46 Value Added Optimum utilization of human and capital resources through intelligent organization and application of technology to industrial activity is in effect production efficiency. Measuring production efficiency, however, is a difficult and involved area of research.1 One approach that can give a rough indication of the production efficiency of the state's mineral industries is to make comparisons of value added per man-hour of labor in Vermont and for competing indus- tries in other states. Value added is defined as what is left to the producer after "the cost of supplies, minerals received for preparation, purchased fuels and electric energy, contract mrk, and purchased ma- chinery" are subtracted "from the value of shipments and receipts plus capital expenditures.“ Caution must be exercised in using this statis- tical measure for purposes of comparing efficiency because it was not really designed for this purpose, but was intended for use in measuring the location and intensity of industrial activity. Although value added does not actually measure production efficiency, it does indicate “how efficiently depreciation on capital invested in assets, management, and overhead costs are utilized in conjunction with the labor input to lsee for example: Margaret Hall and Christopher B. Winsten, ”The Ambiguous Notion of Efficiency,‘I W, LXIX (March, 1959), pp. 71-86 where the many variables within management and technical efficiency are discussed: and T. R. Saving, ”Estimation of Optimum Size of Plant by the Survivor Technique,“ W, LXXV (November, 1961), pp. 596-607 where efficiency is discussed in terms of ability in predicting future demand, introducing new products, and weathering recessions. 20.5.. Human of the Census. WW 1355, Vemont area report (1961) , pp. VII-VIII. —-q JV 47 produce the value added to the product by the manufacturing process."3 An analysis of data for specific mineral industries sheds some light upon how Vermont's value-added figures compare with those of other states (Table 7).“ The sand and gravel industry in Vermont has a lower value-added figure than do those in Pennsylvania, Minnesota, and Georgia. Vermont's crushed and broken limestone industry compared with the same industry in other states also shows up unfavorably. Dimension stone stands out as a relatively low value-added industry in all of the states compared. Dimension stone (excluding granite) in Vermont has an average value added per man-hour of $2.86 compared with $2.88 for Georgia, $2.96 for Pennsylvania, $3.47 for New York, and $3.64 for Minnesota. Only North Carolina has a lower ratio than does Vermont. What could account for the relatively low value-added position of Vermont's dimension stone industries? Production of these commodities is accomplished through Inethods of quarrying and processing that demand a large amount of highly skilled and highly paid labor input. Since this labor input contributes to the value-added figure, and in spite of’this the value-added figure remains low, it is likely that the "other elements“ associated with production efficiency are inadequately handled: credit and financial 33ally B. Maybury and David A. LeSourd, "Labor,” W , Vermont Development Dept. (Montpelier: Vermont Development Dept., 1961), pp. 54-55. The problans associated with equating value added with production efficiency were also discussed during an interview with Mr. Roger Brown, Instructor in JEoonomics, Green Mountain College, Poultney, Vt., Nov. 26, 1964. “Nondisclosure rules and the practice of the U.S. Bureau of lflines of grouping different industries into broad classifications make extremely difficult an investigation into specific mineral types. 48 TABLE 7.--Value added per man-hour in mineral industries of Vermont and those in other states fer 1958a Total Value Total Man- Value Added Added Hours Per Man-Hour State ($1,000) (1,000) (dollars) VERMONT Dimension Stone (except granite) 9,754 3,414 2.86 Mining only 868 322 2.70 Included in.Manufactures 8,886 3,092 2.87 Graniteb 4, 908 1. 033 u.7 5 Talcc 126 26 4. 85 Crushed and Broken Limestone 308 127 2.43 Sand and Gravel 670 138 4.86 PENNSYLVANIA Dimension Stone 4, 237 1, 430 2. 96 Mining only 1, 088 318 3.42 Included in Manufactures 3,149 1,112 2.84 Crushed and Broken Limestone 36,114 5,895 6.13 Sand and Gravel 13,590 2,438 5.57 MINNESOTA Dimension Stone (except granite) 6,708 1,841 3.64 Mining only ‘ 402 130 3.09 Included in Manufactures 6,306 1,711 3.69 Granite 5,606 1,534 3.65 Crushed and Broken Limestone 4,053 958 4.23 Sand and Gravel 15,784 2,457 6.42 GFDRGIA Dimension Stone (except granite) 4,751 1,855 2.88 Mining only 1,147 429 2.68 Included in Manufactures 3,604 1,426 2.60 Granite 2,868 998 2.87 Talc 310 166 l . 87 Sand and Gravel 3,776 436 8.92 NEW YORK Dimension Stoned 822 237 3.1;? NORTH CAROLINA Dimension Stone (except granite) 2, 182 800 2.73 Crushed and Broken Limestone 2, 212 340 6. 51 Talc 1. 778 391 a. 55 Sand and Gravel 4,324 909 4.76 aCalculated from data contained in: U.S., Bureau of the Census, WWW. Area reports for the various states (1961). Note that some establishments where manufactural activity is dominant are included in manufactures. bData calculated for approximate values by elimination of all other materials listed under the heading “All Mineral Producers.“ Ver- mont, Unanployment Compensation Commission, W W (Montpelier: Vermont Unaployment Compensation Commission, [n.dJ ). °Data available for Windsor County, Vermont, only. dWashington County, New York, only (slate district). 49 arrangements, accounting procedures, and, in some instances, a poorly developed level and use of production technology. Field observations of dimension stone establishments and interviews with producers tend to support this statement. Unless many of Vermont's mineral producers take remedial action toward increasing their efficiency through better management and greater use of labor-saving techniques and mechanization, they will not remain competitive. Unfortunately many producers interviewed appear to have little concept of the principles involved and the methods used to determine their actual value-added figures, nor do they realize the advantages of“modern cost accounting. Only 25 of 42 mineral producers answering a general questionnaire designed for this study said that they utilize this approach to ascertain costs.5 The following paragraph illustrates the producers' relative lack of awareness of value added and cost accounting. For example, when the general superintendent of one of Vermont's larger slate firms was asked to give an approximate value-added figure for their slate shingle production, he calculated entirely by “estima- tions.” He estimated the average value added for each square at $3.59.6 Ebtimations were necessary because they have never'made a cost analysis for producing a square of roofing shingles. In fact, the firm does not 5The general questionnaire was sent to each of the state's approximately 175 mineral firms. (See the appendix for the question- naire's complete text.) 6A square of roofing slate is 100 square feet of shingles with a three inch overlap. 50 maintain a file on costs incurred in any of its operations. The super- intendent indicated that they once attempted to utilize cost accounting through their regular accounting agents, but the problems encountered in assigning costs to a particular’process or operation proved so dif- ficult that the effort was abandoned. Although the company maintains no fOrmal system of cost accounting, he claimed that they have some idea of those production processes that are least efficient. Their greatest problem, he maintained, centers on the operation of the company's quarries.7 Several interviews and field observations over a period of two years show no efforts by the management of this firm to determine specifically their least efficient production activities. Neither have they developed methods for increasing production efficiency. Summary and Conclusions Although the relative production efficiency fer Vermont's min- eral industries is difficult to determine, the use of value added per man-hour of labor fer specific industries gives a rough indication of it. That value added really measures efficiency only in terms of how effectively capital, raw materials, machinery, and overhead costs are handled along with the labor input must, however, be kept in mind. Thus considered, only a few of the state's mineral industries such as granite compare favorably with competing regions. Most of Vermont's mineral producers would likely agree that efforts to minimize costs and to maximize profits are their basic con- cern; but too many of these businessmen neither understand nor use 7Name withheld to protect interviewee. 51 techniques such as cost accounting that can, if properly utilized, help increase profits and growth by detecting business operations least efficient. The following chapters are devoted to (1) exploring the adequacy and intensity of effort in minimizing costs and maximizing profits by Vermont's mineral producers and (2) exploring some of the major problems hindering these producers in reaching optimum production efficiency. CHAPTER VI LOCATION, MARKET ACCESSIBILITY AND ASSOCIATED TRANSPORT PROBLEMS Most industries are vitally concerned with transportation costs and market accessibility. Both mineral extracting and manufacturing industries are concerned, but especially the latter. Minerals of suitable quality are usually limited in their distribution over the earth's surface. Many of these materials are heavy and bulky and also of low value in proportion to weight. High weight and low value many times necessitate that mineral manufacturing industries become “rooted" to their raw material supply. If large amounts of bulk are lost in processing, it is usually cheaper to remain near the needed raw material. Proximity to markets is important too. As distance from markets in- creases, accessibility decreases, because shipment costs may become so great that the relatively high-weight low-value item becomes uneconomic. Accessibility or inaccessibility based upon distance to large urban markets--such as "megalopolis" of the Northeastern United States--can be crucial to an industry's success or failure. International borders and their associated tariffs may also create difficulties for an indus- try by placing added financial burdens on the marketing of commodities in areas that, if the political borders were not present, could be reached as a natural hinterland. Producers in Vermont's mineral industries have long been and 52 53 are still vitally aware of the problems associated with transportation. The development of transport systems in Vermont has been similar to that in other areas of the United States.‘ Toll roads, canals, and railroads penetrated the state. Some of the systems prospered: some speculative ventures failed. The problems and network pattern of these past trans- port systems, as well as those of the present, reflect somewhat the state's location and terrain. Today, the state is faced with the prob- lems of failing railroads and an antiquated highway system. Future availability of transport facilities and the reduction of transportation costs could prove the keys to the continuance and added development of Vermont' 3 mineral industries. Market Accessibility Market accessibility for Vermont's mineral producers involves several important problems--namely, location, an increasing distance from the United States' center of'population, and an adjacent inter- national border. None of these problems are crucial to a continuance of the state's mineral industries: but if these problems are not crucial to the continuance of Vermont's mineral industries, neither are they, to any degree, amenable to change. Each.increases costs of'marketing mineral commodities-~thus reducing the maximum contribution of these industries to the state's economy. Laaaiian Vermont's location in the United States has an important impact on the ability of the state's mineral producers to reach large popula- tion and market areas. The state's proximity to large urban areas of the Northeastern United States is an advantage, but its distance from 54 growing western markets is a disadvantage. Distance can be compensated for only through cheap but speedy methods of transport; and though it is true that transport systems have become somewhat faster and, in a sense, more efficient, the transport requirements of Vermont's mineral indus- tries have not changed appreciably. Although Vermont's physical position is fixed, market accessi- bility is not. The United States' center of population is slowly but steadily shifting to the westward. In 1900 the center of population was in southeastern Indiana; in 1960, south-central Illinois. In 1930 roughly 33 percent of the total United States' population was within a 500emile radius of Vermont. By 1960 the total population within this radius was barely 30 percent. The absolute number of accessible popu- lation within this radius has not declined, but the relative accessi- bility to total population has diminished. The westward shift of popu- lation will not have had the same effect on competing areas of‘mineral production nearer to the center of population. For example, the slate region of eastern Pennsylvania is 150 miles nearer to this center than is Venmont's slate region. Its businessmen can reach with less expense a larger number of the total United States' population than can their counterparts in Vermont. The westward shift of population should not, however, receive too much emphasis. More important is the state's proximity to very large urban areas. If Vermont's slate region is considered in this context, it is again at a disadvantage when compared with the slate re- gion of eastern Pennsylvania. A circle scribed with a 100-mile radius around each of these two competing areas brings out clearly this 55 disadvantage. For Vermont's slate producers, metropolitan areas-«such as New York, Philadelphia. and Trenton--are more expensive to reach than they are for producers in Pennsylvania (Fig. 12). Georgia's marble and granite districts, on the other hand, are farther from the large urban areas of the Northeast than are Vermont's regions. The marbles of Missouri and Tennessee and the granites of Minnesota and Wisconsin also have a locational disadvantage for accessibility to very large urban markets of the Northeastern United States. W The United States imports from various countries considerable quantities of minerals like those produced in Vermont. Vermont's granite and marble producers are themselves significant importers. Canada is one of the leading suppliers of granite and several other min- eral commodities. Granite enters Vermont primarily from Canada, but it is also imported from Finland, Norway, Sweden, France, Belgium, Italy, and Brazil. Marble imports come from Italy, Greece, Morocco, Spain, and France, but only small amounts come from Canada. Small amounts of slate are imported from Italy, Portugal, France, West Germany, Norway, and J apan: very small amounts come from Canada. Talc enters from India, Japan, Taiwan, France, Italy, the Netherlands, the United Kingdom, and a small quantity enters from Canada. Most United States' imports of limestone enter from Canada; and Canada, along with the Republic of South Africa, accounts for a major portion of the asbestos imported into the United States.1 The United States also exports many of these commodities lU.S.. Bureau of the Census. WWW: W, Foreign Trade Report No. FT 110. 56 MARKET ACCESS VERMONT 8 PENNSYLVANIA SLATE REGIONS @Boston o Binghompton F" . . . 'Sorinofield ~ \ Hartford ! ) O ’ an. . \QOG CONN. Scranton . . r-M' . 4N4 PENN. Dancer? N.J. k. Trenton Philodelphioo/ :- “. . ‘L 5.0 '90 like 'DEL. N“ F.C.E. 57 to Canada. The large exchange of mineral commodities between Canada and the United States would. probably be even greater if the high tariffs were lowered or removed. And the boundary works in reverse: the northern and north- western hinterland of Vermont's mineral producers is severely restricted. Only 50 to 100 miles to the north the barrier of tariffs adds to the costs of getting marble, granite, slate, and talc to metropolitan areas such as Ottawa and Montreal. Besides increasing marketing costs these tariffs influence the types of goods moving across the border. Duties maintained by both the United States and Canada are considerably higher on finished stone products or other fully processed mineral items than they are on unfinished or semi-finished materials. Therefore, most of the commodities moving across the border are unfinished or semi-finished. Although both countries have high duties, Canada's are higher. Canada's import duties on finished slate, granite, and marble average almost 16 percent higher than the rates on the same commodities entering the United States. This, along with lower Canadian labor costs, places the Vermont mineral producers ata relative disadvantage when they attempt to compete for Canadian markets (Table 8). But the Canadian relation is not all to the detriment of Vermont producers. The Vermont Marble Company takes advantage of Canada's cheaper labor and a free entry for rough marble into that country. They ship a large volume of rough stone to cities such as Peterborough and Toronto, Ontario, where it is processed into finished products and then sold on Canadian markets. This practice avoids a duty of 25 percent ad valorem. The reverse arrangement is characteristic of granite shipments, 58 and the United Statesa TABLE 8.--Import duties on selected mineral commodities entering Canada W Entering Tariff Rates Commodity United States Canada Marble Roughs-not hammered or chiseled 5.5% ad val. free Sawed--not polished 5. 5% ad val. 5% ad val. Finished 7.0% ad val. 25% ad val.b Limestone Crude 20¢ per short ton free Slate Roofing 25% ad val. 70¢ per sq.° mackboards 25% ad val. 10% ad val. Mantels or other manufactures 10.5% ad val. 27%% ad val. Granite Rough--not hammered or chiseled l¢ per cu. ft. 123% ad val. Sawed 12.5% ad val. 15% ad val. Finished 12.5% ad val. 25% ad val. Talc Crude .05¢ per 1b. 15% ad val. Ground 12% ad val. -- aCompiled from data received by letters from; Donn N. Bent, Seey., U.S. Tariff’Commission, washington, D. C., April 27, 1964 (based on revised WWW. pp. 226-28. 234): W. Keith Buck, Chief, Mineral Resources Division, Dept. of Mines and Technical Surveys, Ottawa, Canada, Feb. 11, 1964 and May 21, 1964. bExcept when purchased for use in the interior of churches. cEqual to 100 square feet with a three inch overlap. probably in response to the tariff rates (Table 8). Granite producers in Vermont bring rough stone from southern Quebec to Barre, Vermont, where it is processed into finished commodities. The total volume of granite brought into the Vermont customs district has been increasing in recent years. In 1960 only 24,332 cubic feet entered Vermont; but 77,450 cubic feet came into Vermont in 1963. This figure represents nearly 80 percent2 of the United States' total rough granite imports 2Computed from data received by letter from L. N. Blugerman, Director, Building Materials Construction Division, U.S. Dept. of Commerce, April 3, 1964. 59 for that year.3 Duties on finished granite entering Canada are very high--25 percent ad valorem. To circumvent this cost Rock of Ages is now’setting up granite manufacturing establishments near newly purchased Canadian quarries.)+ The United States is Canada's largest supplier of slate com- modities in spite of the advantages enjoyed by slate products from wales entering Canada under the British preferential tariff. Canada produces only small quantities of slate--primarily roofing granules in British Columbia and road fill in Quebec;5 only small quantities of slate enter the United States fromCanada.6 No roofing shingles entered the United States from.Canada during the period 1960 to 1963, but the United States exported 751 roofing squares to Canada in 1962 and 353 squares in 1963. Unfbrtunately, information showing the customs district from which this material entered Canada is not available. Canada in 1963 also imported $102,929 of slate manufactures (all items except roofing materials): but more would likely enter if such a high tariff rate did not exist-~27§ per- cent ad valorema According to vermont slate producers, fairly large amounts of rough stone are purchased in Vermont for processing in 3What percentage of Vermont's production this figure represents cannot be determined precisely because of nondisclosure rules, but by calculating the number of tons that the cubic footage equals (about 1 to 11) and comparing this (8,674 short tons) with Vermont's 78,455 short tons produced in 1961, it would have equaled slightly more than 11 percent of Vermont's production for that year. “Interview with Milton v. Lyndes, Gen. Mgr., Barre Granite Assoc., Barre, Vt., July 2, 1964. 5Letter from w. Keith Buck, Chief, Mineral Resources Division, Dept. of Mines and Technical Surveys, Ottawa, Canada, May 21, 1964. 60.3.. Bureau of the Census. W W. Foreign Trade Report No. FT 110- 60 Canada.7 Perhaps the larger slate producers should follow the lead of the Vermont»Marble Company and the Rock of Ages Corporation and explore the possibilities fer establishing finishing mills in Canada. Although not all mineral producers in Vermont suffer to the same degree from.high Canadian duties on finished products, undoubtedly a lowering of these rates could help increase sales of Vermont minerals in the very accessible marketing area of southeastern Canada. Vermont Transport Systems and Transport Problems Throughout the economic development of the United States the major avenues of trade and human movement have developed an east-west orientation. Thus, as was pointed out in previous discussion, Vermont's location in the northeastern corner of the United States has been some- what of a disadvantage to the state in its ability to compete with areas nearer the mainstream of commerce and communication. Even during its colonial development and early statehood, vermont lay to the north of the main foci of activity. In addition to a somewhat disadvantageous location, Vermont's physical terrain does not lend itself to east-west movement. Although communication and commercial activities can be carried on without much difficulty in north and south directions, east and west movements are hindered. The Connecticut River bounded on the east by the White Moun- tains of New Hampshire and on the west by the Green Mountains of Vermont encourages a north and south.movement of goods and men. Lake Champlain 7Interview with Frank Graziano, Co-owner, Fair Haven Slate Co., Hydeville, Vt., April 17, 1964: Edward S. Carpenter, Pres., Vermont Structural Slate Co., Fair Haven, Vt., May 20, 1964. 61 and its associated valley lying along the state's western margin and hemmed in by the Green Mountains and the Adirondacks of New York also has its axis directed toward the north and south. Transportation systems have long depended upon these lowland routes, and the location of railroad and highway systems of today continue to reflect the state's physio- graphic pattern. The remainder of this chapter is devoted to a closer look at some of the present problems Vermont mineral producers face that are associated with traffic patterns, freight rates, and available transport systems. Prospects fbr future water transport are also briefly considered. Earlx_iransaort_sxatsas .As early as 1792, only a few years after the opening of the first marble quarries in Rutland County, residents of western Vermont talked about the possibilities of a canal that would connect Lake Champlain on the north with the Hudson River on the south. In 1837, several years after the actual completion of the Champlain Canal, marble producers in the Dorset area carted blocks of stone to Whitehall, New York. The blocks were sent down the Champlain Canal to the Erie Canal for trans- shrmment to Buffalo and then onward to their final destination at Erie, Pennsylvania . 8 During the early 1800's, producers in the Middlebury area shipped marble down Otter Creek to Lake Champlain, then down the Richelieu and St. Lawrence Rivers, and on by sea to Boston and other New England cities. This circuitous and slow trip was undertaken to avoid the many hazards 8Edmund Fuller, (Brattleboro, Vermont: Vermont Printing Co., 1952), p. 232. 62 and difficulties of an overland trip of only 50 miles to the Connecticut River.9 In spite of the Champlain Canal's completion and the possibilities of water transport by way of Lake Champlain, Vermont's early stone quar- rying and processing industries produced prhmarily for the local market. The lack of'markets may have been responsible for the marble producers' long delay in utilizing the Champlain Canal. Not until the coming of the railroads did mineral producers seek and acquire markets considerably removed from Vermont, and only then did they begin to expand their pro- duction at a rapid pace. Between 1848 and 1853 railroads connected all of the state's major mineral producing areas--with the exception of the granite region-- to points east, west, north, and south of Vermont. The Rutland and Burlington Railroad connected Rutland and Burlington in 1849, and the Delaware and Hudson Canal Company during 1850 and 1851 built connecting rail lines from points in eastern New York to Rutland, Vermont, by way of Fair Haven. The completion of these lines gave the west Rutland- Proctor marble region and the Poultney-Fair Haven slate region outlets in three directions. By 1853 connections in the south enabled these districts to ship in any direction. Talc producing areas of Windsor County were joined with the Boston and Maine system by way of the Rutland and Burlington Railroad in 1849. During that same year the Barre granite region, to the residents' chagrin, was by-passed when the Vermont Central Railroad built a link from the Champlain Valley to the Connecticut River. 9Earle Newton. Witching: the_§z§en_flguntain_§ta_e, The Vermont Historical Society, Montpelier (Burlington: The Lane Press, 1949), p. 160. 63 The line pushed up the Green Mountains' western side following the valleys of the Winooski and Dog Rivers. It then descended on the eastern side into the Third Branch of the White River, and, hence, down the White River to the Connecticut.10 The granite interests in 1875 finally obtained a branch line into the BarreeWilliamstown area, and in 1885-1887 the Clarendon & Pittsfbrd Railroad joined west Rutland to Proctor for the specific purpose of servicing the area's marble establishments. The completion of these railroads gave each of the major mineral producing regions direct access to rail service, but the maximum (approximately 1100 miles)11 in track mileage in Vermont was not reached until the turn of the century (Fig. 13). WA: The total railroad route and track mileage is now considerably reduced (Fig. 14). The volume of traffic originating in Vermont was never really large; and at times it was not enough to sustain several competing lines. The Vermont Central Railroad, now the Central Vermont Railway, Inc., was not even built for the primary purpose of attracting Vermont traffic. Its main function was and is to serve as a bridge line between railways-~its parent, the Canadian National, and railways in southeastern NewEngland.12 A large part of Vermont's trackage either still serves this kind of original function or has, through necessity, taken on this function. An excellent example of the bridge line is the 10mmam J. mlgus. WWW g£;!§zmgnt (Montpelier: The Vermont Historical Society, 1945), pp. 63-78. 11m. p. 80. 12Interview with Thomas L. Kennan, Freight Rates Officer, Central Vermont Ry., Inc., St. Albans, Vt., Feb. 26, 1964. 71° 7:136 71' .. - . r‘r’ \ J87; I; i new 1e} ’ s In / s cc _ a’ \I - E I ‘1 ‘ ( . \\ \ \- \ \\ L . f '\ I '. \ ‘ I, — s ‘ \ kl! \\ ; 9’ “.090 , I u. I ~ ‘ I 0 I I ‘ “0 'oo' ‘31? so” Burlington \ .. ’ " VL/ - ’ ‘ " ' Ia . : . r ‘ I Izontpolyr \ J ' ‘g l ,9 Born \ \ I I‘88 ' I I I I ’ I % ' VARIED LINES INDICATE , ,’ DIFFERENT RAIL svsrews '. l 2’ \o - I $5. «g, ’I ’I Foir ' Hm." Prodor 5 . (3%,, ‘ Rufl d vfl’ I RAILROAD NETWORK at" ‘.O on ’I as . OF VERMONT “:3? g 1049 \ I900 31: .‘L l (and yoor when completed) I I', z 4*, ’ I’ I 3 \ ' l \ A 'r ‘6 0 IS 30 I ‘3) ' L Mil: \ \ ,' \ l \ \ "L "1" "' EQE. Source: groggrggnwop conlolnod in VLJ. Wilguo, The Role of Transportation in me Development fig. IT 65 I V ra’eo‘ n. e, ‘ ./ N ( I '9’ \r' o s N..." a. 9n " u. ‘ N. c. . W L. WI/‘\’ '\ :3“ «:3- o; 5;»: ¥ 0 LEGEND Q. —x——Boolon a Maine ---------- Canadian Pacific '\ —-o—Conlrol Vermont ' ----- Clorondon a Pitlolord —--—Doloworo 8 Hudson —-—Grond Trunk oo o ooooHooooc Tunnel e Wilmington —-'—"°Moino Control ( -'°"'-°Monlpolior a Burro Rullond Railroad ho“ ‘ —"' -Sl. Johnsbury e Lomoillo County 7 -- 'fl / RAILROAD NETWORK 9‘3 J.- ~’ OF VERMONT : e" / I964 0 4 Q0 . . "ll“ 4; :‘t x \ I" . ”[17:96 '1. EGE. Sou“: ”'3'an conlolnod In Val. Wilma, The Role cl Transportation in the Development Fly. l4 66 newly reopened Rutland Railroad.l3 Tied in with the Canadian National and the Delaware and Hudson systems on the north and with the Boston & Maine on the south, but not actually associated with any of these, the Rutland Railroad has long starved for traffic. As William H. wallace, a transportation geographer at the University of New Hampshire, points out, the bridge-line railroad, such as the Rutland, has a difficult time without a parent system that acts as a "feeder."lL‘L The plight of the Rutland Railroad, in a sense, epitomizes the problems faced by the mineral shipper and the mineral carrier in Vermont. The problems they both face are interdependent but also antithetical. Shippers are concerned with dependable and frequent service. The bridge- line carrier is more concerned with total volume of goods obtained from and delivered to the rail systems it connects since this is the main source of traffic. It is not so concerned with service at points in between because multiple stops and switching costs may be more than the revenue received from relatively small amounts of traffic originated. wallace points out that all of Vermont's north-south railroads are bridge lines--each competing for traffic moving from Canadian lines and those of southern New England. Competition for this traffic is fierce.15 The Rutland, reopened in January 1964 by new owners, but still without a parent system, will very likely have a difficult time remaining out of the red. Some shippers interviewed in the fall of 1963, who had 13The Rutland Railroad was closed in September 1961 but was reopened in January 1964. lI‘mFreight Traffic Functions of Anglo-American Railroads," Annals _f_Lh2_A§§cciaLign_gf_Aa§£isaa__§ggza2_§n§ LIII (September. 1963) 327-28. 15lbida. p. 327. 67 once used the Rutland, indicated that they would probably not go back to using this carrier if it were reopened. The reasons given for their attitude were: (1) previous service was poor, and (2) the use of trucks is much.more functional. Trucks are more functional because they can deliver on the job, are not as dependent on regular schedules, and are faster.16 Other shippers have expressed a desire to see the Rutland re- opened, and the sooner the better. Several producers suffered severely when the line closed in the fall of 1961. The Vermont Kaolin Corporation near Bristol, Vermont, was completely shut off from any feasible rail transport. The company has special dockage facilities in the village of New Haven Junction, but their processing plant's location still re- quires a truck haul of ten miles. The cost of loading, moving, and transshipping their kaolin materials was high even before the Rutland stopped running. At the time this firmfis representatives were inter- viewed, they were fOrced to rely on trucks for all shipments. Mr. Allen C. Moore, Treasurer of Venmont Kaolin, illustrated the added transport cost of trucks with the following example. By rail they shipped a ton of kaolin to Rhode Island for $6, but by truck the cost was approximately $12 a ton. A few customers come to their plant and haul the kaolin in their own tracks; this helps cut costs. The real solution, he felt, was the reopening of the Rutland Railroad.17 Recent 16Interviews with John Heinreiver. Co-partner in Bowker & Son, W. Rutland, Vt., Dec. 2. 1963; Clyde Barton, Co-owner, Vermont Soapstone Co., Perkinsville, Vt., Nov. 8, 1963. 17Interviewwith Allen C. Moore, Treas., Vermont Kaolin Corp., Bristol, Vt., Sept. 18, 1963. 68 correspondence with.Mr. Moore, however, indicates that the Rutland's reopening has not had the effect they desired--a return to rail shipments. Although the Rutland reopened in January of 1964, Vermont Kaolin did not ship one carload of kaolin by rail until May 25. Most of their customers have not shown a desire to return to the use of rail shipments. Mr. Moore feels that customers have become accustomed to overnight truck- ing services. Although rail rates are lower, it takes the rail carrier fOur or five days to deliver kaolin to customers in Massachusetts and Rhode Islandlla Another example of the difficulties encountered by different firms with the Rutland's closing is well illustrated by the Vermont As- sociated Lime Industries, Inc., at Winooski. The firm has two plants-- one in Winooski and another in New Haven. hhth.the abandonment of the Rutland, the New Haven plant, burdened with added transportation costs, closed19 and it has remained so; but management has made a very recent decision to reopen the plant.20 In the Windsor County talc region the problems created by the Rutland's closing and transport difficulties in general are especially well illustrated. This portion Of the Rutland Railroad has not yet re- opened. Two talc finms operate in the region--the Vermont Talc Company at Chester and the Eastern Magnesia Talc Company at Gassetts. Both firms have very high transportation costs. Each finm has its processing mill 18Letter from.Allen C. Moore, Treas., Vermont Kaolin Corp., Bristol, Vt., June 1, 1961+. 19Interview with James Ticehurst, Office Mgr., The Vermont As- sociated Lime Industries, Inc., Ninooski, Vt., Sept. 6, 1963. 20Letter from.HOward N. Stark, Vice President, The Vermont As- sociated Lime Industries, Inc., finooski, Vt., March 5, 1965. 69 located beside the tracks of the abandoned Rutland Railroad. The mills, once situated at the mining sites, were moved to the railroad soon after it was completed. Originally, Vermont Talc mined its raw material in Chester, not far from the railroad, but depletion of these high-grade talc deposits has, for many years, necessitated hauling the raw talc a long distance. Presently Vermont Talc hauls its raw material to Chester from south of Simonsville--a distance of nearly 12 miles.2l Eastern Magnesia is at still a greater disadvantage; it has a haul of 16 miles from its mine in Hammondsville to its mill at Gassetts. After processing, the tale of both firms must be loaded onto trucks for shipment to Springfield, the nearest railhead. The Gassetts plant has a haul of 10 miles to Springfield, and the Chester plant, hauling to the same point, must move their product 9 miles. Eastern Magnesia is new opening a new processing plant near Reading. This will eventually end the need for their establishment in Gassetts, but the problm of moving raw materials and finished products long distances will remain. Their mine is located 3 miles from the new mill, and the haul from the new milling establishment to Springfield is 13 miles (mg. 15).” The importance of rail service to the Windsor County talc pro- ducers was especially emphasized when the Vermont Public Service Board, in January 196“, held hearings in Bellows Falls, Vermont. Their purpose was to determine the transportation problems created for shippers by the 2lInterview and field observations with Theron A. Yager, Pres., Vermont Talc Co., Chester, Vt., Sept. 27, 1963. 22Interview and field observations with W. A. Dezaine, Plant Supt., Eastern Magnesia Talc Co., Gassetts, Vt., Oct. 25, 1963. 7O TRANSPORT NETWORK OF THE WINDSOR COUNTY TALC REGION 30‘ Hammondsville QE'M' Windsor EM. Reading '1‘ ”VojLudiow N_ H. 4, $0} RUTL o A Perkinsville Springfield Simonsville . .04; V" N o r.“ Chester 'QQ “- V.T. ‘ ' 73- 72°30‘ 1 ”v.1 LEGEND V.T.—-Vermont Talc Co. E.M.—Eastern Magnesia Talc Co. 8.8 M. R.R.—Boston a Maine RR. (R g a 8 Mill ’2‘ Mine ‘ , Miles N Highways 72," F.C.E. Fig.l5 71 Rutland's closing and also to determine the desire of shippers in the area fer reopening the Rutland to Bellows Falls branch of the railroad, a branch still not open. All witnesses indicated a desire to see rail service reestablished. Mr. Theron Yager, President of the Vermont Talc Company in Chester, testified that his company had last approximately $20,000 since the closing of the line in the fall of 1961, and this, he said, was a ”conservative estimate.“ He pointed out that this loss was due to the great differential of rail and truck rates. The difference is enough that he has little ability to compete with a firm having rail service.23 Comparisons of present truck and past rail rates paid by Mr. Yager are impressive (Table 9). TABLE 9.--Comparative freight rates for truck and rail 8W6 ___r°m esielflna Rates per Ton Points of Destination Rail Truck Buffalo, New York $ 9.00 $22.50 Akron, Ohio 10.80 28. 20 St. Louis, Missouri 1h.10 39.20 aCompiled from: Builand.2ailxiflszald. January 2“, 1961-l», p. 1. Although representatives of the Eastern Magnesia Talc Company did not testify at the hearings, Mr. W; A. Dezaine, Plant Superintendent at their Gassetts plant, in the fall of 1963 indicated that with the demise of the Rutland their transportation costs increased from an aver- age of $5.25 to $7 a ton.2u 23W. January 21». 1961+. p. 1. 2""Interview with‘w. A. Dezaine. 72 Vermont's talc producers are certainly not unique among the state's mineral producers in their transport problems and expenses. Northern Vermont has one of the few areas in the United States producing asbestos. The Ruberoid Company operates a large quarrying and milling establishment 3 miles north of the small village, Eden Mills. Company trucks haul large quantities of asbestos fiber to Morrisville, a distance of 16 miles. At Morrisville the asbestos is transshipped to distant points by way of the St. Johnsbury~a Lamoille County Railroad.25 Trans- shipment, road maintenance in winter, and handling costs reduce Ruberoid's profits and their ability to compete most effectively with Canadian pro- ducers who have excellent asbestos fiber and whose establishments are immediately accessible to rail transport. One instance of a shipper not affected to any degree by rail shipment problems is the Vermont Marble Company. Their rail transporta- tion costs are favorable to a good competitive position. Vermont Marble owns the Clarendon.& Pittsford Railroad; the line carries all marble moving by rail out of Proctor. The Clarendon & Pittsfbrd connects with the Delaware and Hudson system at'west Rutland. As the originating railroad, the Clarendon & Pittsford receives a certain part of the shipping charges, depending on the distance of shipment. The relative advantage held by the Vermont Marble Company in rail shipments can be illustrated with the following example. A shipment of 80,6h0 pounds of ground marble in 50~pound bags sent to Salem, New Jersey, sustains a charge of $230.23. The Clarendon & Pittsfbrd receives, as the 25Interview and field observations with Louis Jordan, Geologist far the Ruberoid Co., three miles north of Eden Mills, Vt., Oct. 28, 1963. 73 originating railroad, $27.64 or 12 percent of the total shipping charge.26 With an advantage of this proportion it is not likely that Vermont Marble suffers severely from rail freight costs. An added advantage they enjoy is that all bills of lading and other book work are done by the Delaware and Hudson, a task and expense usually borne by the origi- nating railroad!27 Vermont's highway network is inadequate for the state's needs. 28 The A large portion of the state's highways are classified as poor. volume of traffic is steadily increasing and will likely continue to do so. During the decade 1953 to 1963, traffic on Vermont's main highways increased '49 percent, and from 1960 to 1963 it increased 13 percent; this means an increase in volume of nearly 5 percent annually.29 The development of better roads is important to the fixture growth of Ver- mont's mineral industries. If plans of the federal and the state govern- ment are realized, this need should be met. Within the next 111 years federally supported interstate and other highway construction will add to or modernize a total of 571+ miles of Vermont's roadway network. Three hundred twenty-four miles of this total 26Letter from James Neiles, Freight Agent, Delaware and Hudson R.R. Corp., W. Rutland, Vt., Nov. 17, 1964. 27 Interviews with James Neiles, Freight Agent, Delaware and Hudson R.R. Corp., W. Rutland, Vt., March 3, 19611; John D. Foley, Freight Agent, Delaware and Hudson R.R. Corp., Fair Haven, Vt., Feb. 19, 1964. 28Highway Planning Division, Vermont Department of Highways, zips-1' “3111 Peri-.1111 1: no. . .1 1 .11: 1:81." [Montpelier, Vemon‘lfl , 1963. 29Letter from H. F. Farrington, Highway Planning Engineer, Vermont Dept. of Highways, Montpelier, Vt., Dec. 21, 196+. 74 will be interstate30 with the remainder devoted to primary and some secondary roads. Some sections of Vermont's interstate system are under construction or have been completed (Fig. 16). The Montpelier-Barre granite region has access to a completed section, but unfbrtunately this has not yet been tied in with other parts of the national network. Talc producers in Windsor County have fairly good accessibility to a finished section of the interstate system that penetrates into Massachusetts to the south. Future construction will tie in the Champlain Valley lime- stone and marble regions with the rest of the interstate network. Other federally supported construction will give the Fair Haven-Poultney slate and the Proctor-west Rutland marble regions good accessibility to the New'York interstate system. During the past two years, state planning engineers have been conducting hearings in communities along the proposed route.31 The advantages offered to Vermont's mineral producers with the completion of the interstate and other road systems should be considerable. Rail Freight Rates Market accessibility depends upon distance, transportation sys- tems available, and the types of commodities to be shipped. Each of these in turn functions to determine shipment costs. Mineral commodities, higheweight lowbvalue products, are very sensitive to freight rates. An investigation of rail freight rates paid by Vermont's different mineral producers and those paid by competitors in other areas shows the state's 3oHighway Planning Division, gpg_git. 31Persona1 attendance at Castleton-Fair Haven Fbur-Lane Highway Project Hearing in Fair Haven, Vermont, November 4, l96h. 75 I L I I 73' 72 50 72' . A‘ A a ,/ fl, 5 ll \. ;Swonton ,’ NBVDOTI u l 1 . .s' ‘\ s ' ‘\ ' o ' e ' t ‘\ o \ e ‘ {0° #:3- urlington : ad ‘ SI Johflsbury"' 0 1 °\ \"\ R o\ a Y”\ Montpelier" .yergannes : X a 1‘ ' 1. l o J i I I I .L | \ b. D" < .t I L £6 E N o \‘ . l 0 RM" 4°" ’ o—o Interstate Completed ’x J 9.--.o Interstate Proposed > <‘~ - _____ I Rum“ \ 1 I o: = :0 Interstate Under Construction ; I————-I Primary Proposed es‘ ' ”ao‘ ' ;\. ‘ '. PROPOSED 8 COMPLETED I, ‘I /‘ \4; _ HIGHWAY PROJECTS ) Cheete‘r‘Y " I963‘I977 12°30‘ 72° 1 L INTERSTATE 8 MAJOR PRIMARY 43: 36 FC. Fig. IS 73' Source: Data compiled and redrawn from Vermont Department of Highways. Vermont‘s l4—Year Planning Program on the Federal Aid Highway Systems. 76 transport costs as fairly competitive. Some rate anomalies do occur that place Vermont at an advantage in some cases and at a disadvantage in others. Only a few examples of comparative disadvantages and advantages and a few of the rate anomalies can be discussed within the scope of this paper. Rail freight rate comparisons, based upon distance and specific commodities, show Barre granite shippers have disadvantages and advan- tages when compared with competing granite regions. In general, Barre's granite shippers have the advantage of proximity to the large urban centers of the Northeast, as do the several other mineral producers in Vermont, but they have a disadvantage in their ability to reach Mid- western and'Western markets. The distance to Chicago from Barre, Vermont, and from Elberton, Georgia, is the same--approximate1y 830 miles. Yet, the rates paid by the two regions are not comparable. For a carload (CL) minimum.ship- ment of 50,000 pounds of rough granite blocks, Barre producers pay 93 cents per hundred pounds (cwt) and Elberton producers pay 82 cents per cwt. An 11 cents difference in Elberton's rates is obviously an advantage to the Georgia producers. On the other hand, the cost for a 50,000 pound CL minimum.of rough granite to San Francisco from Barre is only $2.28 per owt; the same minimum.weight from.Elberton is $2.61. The advantage to Barre is indeed notable since the distance to San Francisco from.these two points is approximately 2,600 miles from.Barre and only 2,200 miles from.Elbertonl When rates on dressed blocks far a 50,000 pound CL minimum.from the same two points of origin--Barre and E1berton--to San Francisco are compared, the advantage is reversed. Elberton becomes the favored point of origin. Barre producers pay 77 $2.68 per cwt and those in Elberton pay only $2.24. Barre is also at an advantage compared with Quincy, Massachusetts, for rates to the west Coast. For shipments to San Francisco, California, and Seattle, washr ington, Quincy producers pay a rate of $2.68 per cwt fer a 50,000 pound CL minimum of rough blocks. Barre shippers pay only $2.28. The distance from.Quincy to San Francisco is not enough greater to account fer the 40-cent cost difference per cwt. The discrepancy cannot be accounted fer merely on the basis of a lower cost on differential32 routes avail- able to Barre because they are also available to Quincy. Another rate anomaly occurs for shipments from Quincy, Massachusetts, to New York City. FOr a 36,000 pound CL minimum of polished granite, producers in Quincy pay 77 cents per cwt--a rate 28% cents more than the 48% cents paid by Barre granite shippers (Table 10). Here, Barre's granite ship- pers certainly profit because the distance from.Barre to New York City is approximately 260 miles; from.Quincy to New York City it is only 180 miles. One reason for these rate anomalies is that Barre granites move under lower commodity rates than do Quincy's.33 ‘According to a repre- sentative of the Montpelier and Barre Railroad Company, an application to adjust commodity rates on stone from Eastern and Southern Territories to the West Coast is before the General Traffic Committee of the Inter- state Commerce Commission. If the application is approved, the 32The differential shipment originates in New Eklgland and then travels over routes through.0ntario, Canada. These shipments travel at a rate of one cent less per cwt than do those shipments on standard routes-~one which travels uninterrupted through the United States. 33Letter from G. N. Sabin, Assistant Vice President-~Freight Rates, The New York, New Haven and Hartford R.R. Co., New Haven, Conn., Dec. 10, 1964. 78 TABLE lO.--Railroad freight rates for Emits comadit‘.es in cents per cwta Dressed Blocks Points Rough Blocks not Chiseled, Hammered, Carved Blocks, Pieces Further Finished or Sand Rubbed-«Not or Slabs, Honed, than Sawed on Four Carved, Hand Let— Carved, Lettered, of Sides tered, or P0 ish Pol‘ sh , or Traced b tan b on b to D tin G g .5 t: g E c: g E as a- O 1 I 0 tion o.§.§ggg&éo.é.§€g¢é% Oeé'gdg’ ”gig t: as the seas t: as {gases 1:: as ”is as a a a a s a a a s s a a E s s Phila- A 112 89 112 6? 140“ 113 159 86 delphia B 74 96 53 65% 6 Penn. c 51% 65% Chicago A 100 119 131 154 111. B 93 82 95 60% C 79 76 St. A 93 113 118 172 Louis B 104 75 106 68 Ho. C 8 161 New A 168 90 131 161 208 112 161 200 Orleans B 135 72 104 129 114 . c 115 60; 89 110 62g 92 Lansing A 70 0.03 101 69 105 128 132 89 136 114 Mich. B 82 86 55 84 C 79_ 22 New A as} 112 483- 97 112 59 l40II no; 122 159 77 York B 85 93% 47 N. Y. c 43; 431 43; Seattle 1 171 261 214 278 Wash. B 228 261 268 “268 224 268 268 221.221 68 Denver A 86 159 188 231 197 245 Colo. B 149 127 581 151 93 84 93 127—19.5 112 San A 180 261 225 293 Francisco B 228 261 190 268 268 224 190 268 268 190 Calif. C Albuquer- A 113 208 166 208 141 258 206 258 184 que B 167 133 167 268 N. Mex. C 117 111 23 Ill A = 36,000 lb. min.: B = 50,000 lb. min.; C = 80,000 lb. min. aCompiled from data obtained from the Montpelier and Barre R.R. 00.: Southern Ry. System: Chicago and Northwestern Ry. CO.: New York, New Haven, and Hartford R.R. 00.; Great Northern Ry.: and Seaboard Air Line R.R. Go. (See letters in bibliograpmr: V. P. Brown, Brooks, Coxon, Richardson. Sabin, and Schroeder.) hm rates from Barre to Chicago, St. Louis, Lansing, Seattle, Denver, San Francisco, and Albuquerque are for differential routes. 79 advantages and disadvantages of the various regions will be adjusted and rates set up "on a more corresponding basis.”34 It seems unlikely that rate manipulation could ever be extreme enough to erase the advantages of Barre's position for servicing the needs of the large urban areas of the Northeastern United States. For example, a 36,000 pound CL shipment of polished granite commodities moves from Barre to New hark City for 48% cents per cwt. The same com- modity and weight shipped from Elberton to New York City costs $1.22 per cwt, and from Redgranite. Wisconsin, $1.59. Slate producers in Vermont when compared with producers in Pennsylvania are generally at a freight cost disadvantage (Table 11). Rates from Pen Argyl, Pennsylvania, as shown in Table 11. are lower to every point of destination except Boston, Massachusetts. The cost ad- vantage held by Pennsylvania producers is not large, but it is enough that Vermont producers feel the added burden. But rates from Guilford, Maine, the point of origin for shipments of slate produced at Monson (a few'miles to the north), are much higher than those paid from Fair Haven, Vermont. If they are to reach the same large urban markets, as do Vermont producers, Monson shippers must pay 15 to 20 cents more per cwt for nearly every type of slate commodity. Shipment costs make even Boston less accessible to Maine's slate firms than it is to Vermont's. Vermont talc producers in the southeast near Springfield and in the north at Johnson can compete quite well with.producers in other major United States' talc regions. Their ability to reach some of the 3“letters from R. H. Coxon. Asst. Gen. Freight Agent, Montpelier and Barre R.R. Co., Barre, Vt., April 22. 1964, and July 27, 1964. 80 Carload Minimum in Pounds of 50 000g 50,000 I 36.000 8 .4 8 H 8 .4 8 H Destinations? 9.83:5 98788.8 3 8‘” a? 3.515; a a 8 .8 a“: a .8 £01 a 8 a: a A 85 78 97% Birmingham 95 84 110 118} 108 141 150 133 172 Bj 81 72 96 Ala. c u 66 92 b fl 250 Phoenix 145.6 192 221»6 246 224c 301 B 298 man 0 u 181 178 208 Denver 127 125 146 163 160 188 199 196 229 £195 1 33" 4 43* Boston 34 us as m 58 55 54 71 68 227;} 3 37 Mass. 2 3 31 84 82 Til—4 Chicago 78 76 96 101 97 124 23 119 151 75 73 101 111. c 67 61+: 93 fl 54L 3 74 Washington 54 4O 71 69 51 91 85 62 111 3 n. c. c J 27 5 z . n 285 Los Angeles 145.6b 200 224° 257 228C 314 B 298 M 70 6 96 Lansing 67 64 87 87 82.111 06 100 135 601 5 87 Mich. 5 47 79 95 91 121 Davenport 86 83 103 110 107 133 34 130 162 86 82 112 Iowa 78 74 104 aCompiled from data obtained from interview with John D. Foley. Freight Agent. Delaware and Hudson R.R. Corp., Fair Haven, Vt., Feb. 19, 1964; and letters from Arch McClay. Division Sales Mgr.. Erie-Lackawanna R.R. Co., Nazareth. Penn., Feb. 27. 1964; L. N. Wentworth. Gen. Freight Traffic Mgr., Bangor and Aroostook R. R. Co., Bangor, Maine. April 6, 1964. bCarload minimum 100.000 lbs. °Carload minilmn 80,000 lbs. d1 = 40,000 1b. min.; B - 60,000 lb. min.; 0 = 80.000 1b. min. 81 largest paper milling regions in Maine and southern New England is better than competitors in New York's Gouverneur region in the western Adiron- dacks. MOntreal as a point of destination is, for example. 5% cents cheaper on a 60,000 pound CL minimum from Johnson than it is from Gouverneur. Considering the difference in distance from Vermont and New York talc regions to points such as Chicago and Detroit, Vermont producers are not at an overly large disadvantage. Rates from the talc region of Allamoore, Texas, southeast of El Paso, to Northeastern markets are so high that its competition from eastern producers must be very severe. St. Louis is approximately the easternmost point of any rate advantage held by the Allamoore region (Table 12). Vermont's marble producers when compared with Tennessee's pro- ducers are at a disadvantage for Midwestern markets such as Chicago; but Vermont producers shipping to Detroit are at a definite advantage when compared with Carthage shippers (Table 13). Rates fer a shipment of slabs, sand rubbed, from Proctor and Knoxville to the'West Coast illus- trate one anomaly. The rate for an 80.000 pound CL minimum is the same for both.points, although Knoxville is approximately 250 miles nearer the point of destination. The most notable relationship of freight ship- ment costs for the three points of origin shown in Table 13 is Proctor's advantage for Eastern markets. such as Boston and washington. D. C. Comparative Freight Rates and Utility of Truck and Rail Carriers The utilization of truck transport has, so far, been discussed primarily for short hauls in moving raw materials from the mine or. quarry site to the mill. Although a lengthy discussion of the trucking 82 TABLE 12.--Railroad freight rates fog talc commodities in cents per cwt Talc Ground--in Bags or in Bulk of Destination Sprlngfield Gouverneur N. Y. Chatsworth Boston Mn) M New York 4: \n Portland :5 Chicago Detroit St. Louis Denver New Orleans $nfimamo lfi§ N% N% Calif B l l 1 Montreal A 63 68% A = 60,000 lb. min.; B-= 100,000 lb. min. aCompiled from data obtained from: B. v. Reynolds, Gen. Freight Agent, The Texas and Pacific Ry. Co., Dallas, Tex., April 10. 1964: J. F. Mayette. Chief of Tariff Bureau, St. Johnsbury & Lamoille County R.R., Morrisville, Vt., April 7, 1964; D. P. Felt, Mgr.--Freight Rates. Boston and Maine R.R.. Boston, Mass.. April 9. 1964; William D. Broeman, Mgr.--Freight Rates, Louisville and Nashville R.R. Co., Louisville. Ky., July 16, 1964. bRates via Canada--the differential route which is one cent per cwt less than on a standard route. c70,000 1b. minimum. 83 TABLE l3.--Railroad freight rates for marble commodities in cents per cwta Splitface Sawed Four Points Rough or Sides or Slabs--Sand Broken Less Rubbed Polished of r?! 0 r3 0 0 0 3 O Destina- ‘5 8.5;; 3; 3.2883258 :22: a... 8..- ifioéeeififi 8888.. 8.357882 O> OP. I-a 2> 09 a 8> 05" ‘68: 12> OE-I :3 d: 93 3 n. :5 o a. Q o n. é o A 117 159 117 270 197 152 El Paso B 127 93 127 91 Tex. C 127 158 D 08 198 112 A 214 214 278 Los AngelesB 171 228 268 228 C i . C 231 203 203 D .24 A 90 106 90 84 106 90 104 131 Detroit B % if; 8% 72 67 85 6 8 Mich. C 51 5 72 7 5 72 83 105 D 60% 56} A 36% 155 36% 84 104 191 Boston B 82 96 Mass. 0 20%- 88 2941» 82 29%- 67 125 83 155 A 84 151 Denver B 121 121 Cole. 0 121 D 103 193 1.02 A 214 278 Seattle B 171 259 268 228 268 228 Wash. C 203 203 1L 28+ 8.29 an A 86 139 107 Chicago B 69 Ill. C 61% 48} 2 2 69 111 86 n 90 582 90 A 134 80 99 165 Washington B 63-} D. c. C 441‘ 75 1558; 10? ‘53 63} 107 5 79 132 D A 101 91 113 132 New Orleans B 73 73 La. C 81 73 91 n 615 61.} 631 A = 36,000 lb. min.; B = 50,000 lb. min.; C = 60,000 lb. min.; D 3 80,000 lb. min. aCompiled from data obtained from: Corp.; St. Louis-San Francisco Ry. 00.; Louisville 8: Nashville R.R. 00. (See interview in bibliographyb-Neiles; and letters--Broanan; Thompson.) The Delaware and Hudson R.R. 84 industry's impact upon railroads is not germane, it should be emphasized that railroads originating traffic in Vermont have experienced severe competition from trucks. Why should trucks give railroads such severe competition in hauling stone products? Many variables enter into what is the most economical transport system. Easier accessibility, greater speed, and less breakage often influence the final decision to ship by truck rather than by rail. For some producers the multiple handling of goods merely to use a rail carrier is more expensive than the cost for truck shipments. Loaded on a truck at the mill site, the merchandise moves directly to the point of destination. A representative of Vermont Marble pointed out, for example, that they can ship 100 pounds (cwt) of stone to Chicago by truck at $1.54; by rail the charge is $1.10. Even with a charge of 44 cents less per cwt, any savings by rail is likely gone by the time the materials reach Chicago, are unloaded, put on a truck for trans- shipment to the destination, and again unloaded at the job site.35 Evidently in this case the advantage of Vermont Marble's originating rail traffic fails to offset the greater utility of trucks. Shippers often mention the tmme element when explaining their preference fer trucks. Time becomes the deciding criterion in closing many sales. That less breakage occurs in truck transport is still another advantage given for their use. The president of the Clarendon & Pittsford Railroad was an unexpected source of support fer this contention.36 An author, writing 35Interview'with A. T. HOwe, Vice Pres., Vermont Marble Co., Proctor, Vt., Dec. 6, 1963. 36Interviewwith E. Wt Olson, Pres., Clarendon & Pittsford R.R. Co., Proctor, Vt., Jan. 14, 1964. 85 fer the Small Business Administration, has duscussed an idea related to breakage. The surest method of shipment with the least breakage may not be the cheapest method because expensive packaging or crating of a product may prove much.more costly than occasional replacement of broken or damaged goods.37 Whether shippers expressing a preference for trucks on the basis of breakage have made actual analyses of long-run shipping costs for different transport methods and systems was not determined. Future truck transport is not likely to become any less impor- tant.38 Every mineral producer interviewed said that he presently uses trucks: none felt that trucks would become less important in the future; and all producers expected to continue using them fer delivery of a large portion of their products, even though the relative cost of truck trans- port on a mileage-poundage basis is usually higher than by rail. Their many advantages, they feel, outweigh the disadvantage of cost. The conveniences of greater speed, accessibility, and less breakage may help to balance out the greater cost of truck shipments; but as distance increases, the relative advantages of truck shipments decrease somewhat. Producers in Barre, fer example, can ship 30,000 pounds of granite by truck to New York City for 64 cents per cwt; by rail it costs 48% cents per cwt for 36,000 pounds. For the convenience (and speed the difference of 15% cents per cwt may be quite economic. When the cost of a truckload shipment of 30,000 pounds of granite to 37mm 8. Williams. MW. Technical Aids for Small Manufacturers No. 50 (washington, D. C.: Small Business Administration, April, 1957), p. 3. 38Calculations based upon data obtained from the general question- naire show that approximately 80 percent of the respondents' shipments move by truck. 86 New Orleans is compared with the cost incurred by rail for a carload of 36,000 pounds, a greater differential appears. To New Orleans the rate is, per cwt, $2.22 by truck; by rail, $1.68.39 But even here it is not likely that the difference in rates is enough to prevent trucks capturing further mineral traffic. A similar pattern of freight costs exists in the carload and truckload shipments of other mineral commodities from Vermont. The costs of truck shipments largely curtail their utilization fer most points of destination west of the Mississippi River, and, as a result, many trucking firms carrying Vermont's mineral traffic do not maintain rates for points in the Far'Western United States. So far, only carload and truckload shipments have been compared. Granite commodities in less than truckload (LTL) lots can move to states such as Nebraska and Iowa at a lower rate than when carried by rail in less than carload (LCL) lots (Table 14). With competition like this it is not hard to see why the railroads are having such difficulties. What the future holds f0r Vermont's mineral producers in their rail and truck transport costs is difficult to ferecast. Railroads may develop better methods of'moving stone materials subject to breakage. This may encourage shippers to use more rail traction. Highway systems will, however, continue to improve thereby increasing the ability of trucks to move greater distances in less time. This may offset any im- provements railroads make. Railroads serving the Midwest must adjust their LCL rates if they hope to forestall further traffic captures by the ”Date received by letters from Ve Barquin, Mgr., Williams Trans- fer, Inc., Barre, Vt., May [2Q , 1964; Ray Churchill's Truck Terminal, Barre, Vt., May £21], 1964. 87 trucking industry. In view of the basic assets and liabilities that these two systems have and the mineral industries' continuing transport requirements, there is little likelihood that significant changes will occur in the near future fer truck and rail movements of Vermont's min- eral traffic. TABLE l4.--Comparative LCL and LTL freight rates on granite from Barre, Vemont, per cwta Points of Destination Carrier 0-5,000 lbs. 5,001-10,000 lbs. Des Moines, Iowa Railb $2.89 $2.89 TNCk 2075 2'“5 Omaha, Nebraska Railb 3.09 3.09 Truck 2.98 2.66 aSource: Theodore A. Rossi, “Geography and Transporta- tion in the Barre Granite Industry" (Paper done for Professor Albert S. Carlson, Geography Dept., Dartmouth College, Hanover, New Hampshire, November, 1962), p. 60. (Mimeographed.) bIncluding a lZ—cent pick-up charge. It is possible, however, for the state's mineral producers to ship their commodities more efficiently. Shippers should, for example, make every effort to move all traffic in carload or truckload lots. (Less than truckload or carload traffic is subject to much higher rates.) Several producers, especially the smaller ones, could establish a system of collective dispatching where less than carload or truckload orders could be sent to the same point of destination. With this shipment method, freight costs could be considerably reduced. Consolidating shipments is presently one of the important func- tions of the Barre Granite Association (BGA). Members are eligible to utilize a "Consolidation Service" that collects monwments destined for rail shipment to the same city. The Association makes arrangements with 88 trucking firms to deliver monuments from the point of rail destination. Members of the BGA pay a lZ-cent pick-up plus a 5-cent cwt consolidation fee}+0 Prospects for Future Transport Since Vermont's mineral transport needs are not likely to change, what possibilities are there fer more efficient (cheaper) methods be- coming available? The only major form of transport available or poten- tially available to Vermont's mineral producers not yet discussed is water. Mineral producers in Vermont are only now beginning to redis- cover water transport. W Some shippers are beginning to use the services of "sea-land“ carriers (fishyback). Two stone producers in the slate and marble regions are enthusiastic about this method. Because of the state's inland position, utilization of water carriers must be made in combina- tion with land vehicles--”sea-truck" and "sea-train.” A Vermont trucking firm tows special trailers from New Jersey to the marble mills at Proctor or to the slate mills in the Fair Haven-Hydeville area, loads the trailers, and then returns to the New Jersey docks where the trailers are hoisted aboard a ship especially designed to carry them. Unfortunately, no "sea-truck" facilities are available through Boston, or costs fer this service might be lessf"l Although the ”sea-truck” carrier is not as fast uoTheodore A. Rossi, ”Geography and Transportation in the Barre Granite Industry” (Paper done for Professor Albert S. Carlson, Geography Dept., Dartmouth.College, Hanover, New Hampshire, November, 1962), p. 45. (Mimeographed.) “Letter from E. W. Olson, President, Clarendon & Pittsford R.R. Co., Proctor, Vt., Nov. 27, 1964. 89 as other transport systems, the reduced costs make it possible for Ver- mont marbles to reach.markets in Florida--a market area once completely dominated by Georgia producers. Shipments to the Gulf Coast made by “sea-truck” cost less than the same shipment sent by rail. Using this method, the marble and slate producers are also beginning to send ship- ments to the West Coast.“2 The ”sea-train" carrier is used by producers to a small extent but does not receive as much attention as the ”sea- truck” method. Some mineral producers might question the utility of these methods. What about the small shipper-~the one who ships in small amounts of less than a carload or truckload? To illustrate, a represen- tative of the third largest slate producer in the region and a user of the ”sea-truck” carrier, the Fair Haven Slate Company, says that their firm owns and maintains its own trucks because the major share of ship- ments are in less than truckload lots. They have to ship this way be- cause of the required promptness of delivery and the small size of the orders. As many as five or six orders may be on one truck; therefore, their ability to use the “sea-truck“ carrier is somewhat limited.43 Obviously, limitations exist in using "sea-land" systems for short-haul or for very small shipments; but there are major opportuni- ties in their use fer distant markets. Although it is rather early to interpret the future impact of ocean carriers on the transport methods of Vermont's mineral producers, there is little doubt that businessmen with an eye fer opportunity should investigate carefully the utility of 1+2Interviews with A. T. Howe and F. Graziano. “3Interview with F. Graziano. 90 water transport. Part of the mineral shippers' task in the future may be to infbrm customers of the advantages of water transport, because it is the customer who often indicates the method of shipment to be used. Qhaaalaiuhaismx Another, but less immediate, prospect for future water transport is a proposed Champlain waterway or, failing this, an "improved” barge canal. Both systems, by way of Lake Champlain and existing canals, would connect the St. Lawrence River with the Hudson River and the New York State Barge Canal. A waterways Study Commission has for the past year been investigating the merits of the proposal. Assuredly, much debate has arisen over the proposed project. The basic issues are clouded by state politics; but the arguments fecus upon two ideas. Proponents favor the waterway for its possible economic advan- tages, and opponents fear that a large number of ocean-going vessels will pollute Lake Champlain. Vermont's senior senator, George D. Aiken, is among those in favor of the waterway. Senator Aiken maintains that the Whterway's completion would be a boon to the state's industry because the availability of cheap water transport would tend to reduce existing rail rates and open up new market areas.44 State Senator James L. Oakes, Chairman of the waterways Study Commission, along with other members such as State Senators John J. O'Brien and Daniel B. Ruggles, favors only an “improved" barge canal.u5 One vociferous group, the Lake “ufiuiland_nailx_flerald. September 11. 1963. P. l and January 8, 1964, p. l. “5Vermont Champlain waterway Commission, Egpgzt_tg_the_1ntgz_ WW (Burlington. Vermont. September 17. 1963). 1)- See also James L. Oakes, ”The Champlain waterway,"23b11§_fl1111tie§ Bantam LXXII (November 21. 1963). 3-19. 91 Champlain Committee, opposes any form of waterway or "improved" barge canal. The Committee, chaired by Mr. C. E. Dunton, a one-time tugboat captain, claims that the only effect such a waterway would have is to destroy Lake Champlain as a recreational center.46 Public opinion in New York and Vermont has been aired at exten- sive hearings held by the waterways Study Commission. At one hearing Mr. Keith wallace, President of the Vermont State Farm Bureau, corrobo- rated Senator George Aiken's contention that the proposed waterway could mean lower rail rates. Mr. wallace claims that railroads in the Southern states have because of barge competition actually requested the Inter- state Commerce Commission for rate reductions on certain commodities such as grain.“7 The concern of the railroads regarding competition is presented in the hearings by Mr. F. R. Stevenson, President of the Vermont Marble Company. (The Company owns the Clarendon & Pittsford Railroad.) He maintains that even if the proposed waterway were completed: There is no assurance that the freight would be less. It would obviously take longer to reach us and also it would take business away from the rail connection which we have a substantial interest in preserving. . . . Any shipment over this proposed waterway which adversely affects the rail service could result in impairing the present rail service we enjoy to our conswmers throughout the United States and Canada, which in turn would result in a loss fig volume and a lower rate of employment in all of our operations. Mr. L. J. Ettinger, President of the Vermont Light Aggregate Company, a slate processing firm just south of Castleton, Vermont, does “6W. September 18. 1963. p. 1. 47Based on the author's personal attendance at Champlain waterway Commission Hearings in Middlebury, Vermont, September 4, 1963. uaChamplain waterway Study Commission, "Hearings” (Rutland, Ver- mont, August 30, 1963), p. 21. (Mimeographed.) 92 not agree with Stevenson's statement. He feels that his aggregate pro- ducing establishment could possibly benefit from.the proposed waterway because it might result in cheaper rail freight rates to New York City where they hope to sell a large part of their product.”9 Mr. Roland Vautour, recently resigned Director of the Vermont Development Commission, has pointed out an important possibility of the proposed waterway. Vast amounts of granite rubble could be used for breakwater material, pilings, and as crushed stone if only a very cheap means of transport were avail- able.50 To determine the general opinion of men in different kinds of business in Vermont toward the proposed waterwey, one witness, Mr. Harley Chatterton, sent questionnaires to the state's major business firms. Of 28 questionnaires returned, 6 were from mineral producers. One granite producer felt the proposed waterway would help his business; 2 other mineral producers-~l in granite and l in slate--felt that it might aid them; the 3 remaining producers--2 in the granite industry and 1 in the marble industry--expressed the belief that such a transport system would be of no value to their operations.51 Of 42 mineral producers answering the general questionnaire designed fer the present study, 10 said that they believe the proposed waterway would benefit them, 4 felt that it might be helpful, 16 said it would be of no value, and 12 made no response. 'What the possibilities are for the debated waterway project are difficult to determine, but they should be given the fullest attention by Vermonters and especially by the state's mineral producers. So far, “91mm. p. 3. 501mm. August 27. 1963. pp. 4-6. 5llbid-. August 30, 1963. p. 32. 93 no thorough investigation has been undertaken to determine the contri- bution such a waterway could make to the state's economy. Mr. Roland Vautour recommends a detailed study of the part the proposed Waterway could play in the development of Vermont's economy. In view of the transport needs of the many mineral industries in Vermont, a study of greater depth and scope than is possible here should be made to deter- mine its potential use to them. Summary and Conclusions Transportation problems faced by Vermont's past and present min- eral producers are in many ways similar. They continue to need transport systems capable of moving high-weight low-value items relatively long distances at rates that allow them to remain competitive with other regions. The increasing distance of Vermont from the United States' center of population is a disadvantage but should not be overemphasized because the absolute amount of population within a given distance of the state is not decreasing. A distinct advantage of Vermont's location is its nearness to large urbanized areas of the Northeastern United States. Competing mineral regions located in areas such as Texas, Georgia, Minnesota, and Wisconsin must pay higher transport costs if they are to reach large urban market areas in the East. But some mineral areas-- such as the slate district in eastern Pennsylvania--are even more advan- tageously situated for access to urban areas than their Vermont counterparts. Vermont's location has advantages and disadvantages. Its posi- tion adjacent to an international border limits, to some extent, its 9h access to a nearby marketing hinterland--the urbanized areas of Canada. High tariffs on goods entering Canada tend to increase the costs of placing finished mineral commodities on the Canadian market. There are, on the other hand, a few instances where the lack of tariffs and Canada's cheaper labor are utilized to the advantage of Vermont's mineral producers, as in the case of the Vermont Marble Company that ships rough stone to Canadian plants where it is milled and then sold on Canadian markets. Although Vermont's present highway system is not good, the state's long-range plans for highway building should increase, to some extent, the ability of Vermont's mineral producers in reaching markets. Vermont's long dependence upon bridge-line railroads has at times, when these systems have failed, placed its mineral producers under an added financial burden through increased transportation costs. The reopening of only segments of the Rutland Railroad still leaves some mineral producers without adequate accessibility to rail transport; and some producers who formerly used rail traction, in spite of their loca- tion near reopened segments of the Rutland, are now faced with the pro- blem of customers not wanting to return to rail shipments. Rail freight rates are difficult to interpret, but Vermont min- eral producers have both advantages and disadvantages when compared with their competitors. Georgia granite producers can reach.Midwestern markets more economically, but Vermont producers can send some commodities to ‘Western states with less cost, even though they are at a greater dis- tance from these markets. Future rate adjustments may tend to equalize any advantages or disadvantages that Vermont mineral producers presently have, but a firm.prediction of the overall effects of these adjustments is difficult to make. 95 That trucks will continue to play an important part in transport- ing Vermontfls mineral commodities is assured because of their (1) greater speed, (2) usefulness in making short hauls and in carrying small ship- ments, (3) realiability for safe transit of goods, and (h) avoidance of transshipment costs. Shipments carried to the Wbst Coast though are likely to continue a major function of the railroads because of their lower rates. If Vermont's mineral producers are to continue competitive with other regions, they must explore every possible method of reducing ship- ment costs. Small shippers should explore the possibilities of central- ized dispatching where several small orders could be sent in carload or truckload lots. Some producers use ”sea-land“ carriers to ship traffic to the Gulf and Pacific Coasts, but the potentials of ”sea-land” carriers should receive more attention even by small producers. water transport could become very important to the State's mineral producers in the future if the proposed Champlain waterway becomes a reality. Its completion might mean added access to nemearkets and a greater utilization of waste stone, such as granite and slate rubble-dmaterials too heavy and valueless to ‘move any distance with.presently available transport systems. Transpor- tation may well prove the deciding issue in the future growth of Vermont's mineral industries. CHAPTER VII LABOR The labor force, in quantity but especially in quality, has an important influence on an industry's success or failure. An industry needs a stable, well-educated, and skilled labor force if it is to ad- vance its position in the market place. To maintain an efficient work force, management, labor, and society as a whole must recognize the necessity for and endeavor to maintain good labor-management relations, general education, and training programs. Both labor and management should view the function of production efficiency as a primary means by which an industry remains competitive, advances, or contracts: they must also recognize that competition must be met regardless of its source, whether it arises from other producers of the same commodity or whether it comes from substitute materials. Management's failure to understand the need for adequate training pro- grams, adequate pay scales, maintenance of records (such as labor turn- over rates and absenteeism), and effective methods of personnel selection results in inefficient utilization of its labor force. Labor must be ready to aid anployers through a responsible attitude toward these sev- eral elements of personnel management that can help increase production efficiency. Society must accept its responsibility to both management and labor through the maintenance of educational and social opportunities for its potential labor pool. 96 97 Age Structure of the Labor Force The age structure of Vermont's labor force is not optimal for meeting the needs of the state's industries. A large proportion of the state's population, 16 percent, lies in the 60 year plus group. This same age group for the United States encompasses less than 14 percent of the total population. Vermont's age group 20-59, which normally includes the most productive workers, is proportionally smaller than is this group for the entire United States: 45.8 as against 49.6 per- cent. The age structure of Vermont's labor force, therefore, is not as favorable as the United States' (Fig. 17). Vermont's mineral industries employ an almost exclusively male labor force. According to the 1960 United States Census, the median age for all employed males in the state 14 years or older is 41.1 years. For workers in the state's stone, clay, and glass manufacturing indus- tries, the median age is 43.8 years; for miners and quarrymen it is 41.4. Employers in the mineral industries claim that the primary reason for the age differential of workers in quarrying compared to mineral manu- facturing establishments is that working conditions are neither as pleas- ant nor as safe in the quarries as in the processing plants. Therefore, as vacancies occur, workers quit the quarries and transfer to the manu- facturing establishments. Thus, workers in the manufacturing establish- ‘ments have gradually come to represent a more permanent and older labor force. The median age (43.8) is 3.2 years greater for Vermont's mineral manufacturing workers than is the median (40.6) for all manufacturing workers in the state. When asked through the general questionnaire whether they felt that this age differential was a liability to their 98 COMPARATIVE POPULATION PROFILE FOR VERMONT AND THE UNITED STATES AGE 75+ — 70-74 I 65-69 60-64 55-59 50-54 4549 4044 35-39 W 30-34 25—29 20—24 l5-I9 IO-l4 5-9 1 0-4 O I 2 3 4 5 6 7 8 9 IO ll l2 PERCENT OF TOTAL POPULATION - STATE MORE THAN U.S. m STATE LESS THAN U.S. Source: Data compiled from I960 Census of Population. FC. Fig.l7 99 production efficiency, 17 of the 42 producers responding answered no. The primary reasons given for this opinion were that the older worker is more highly skilled and more reliable than the younger worker. But 16 producers said age was a liability because training the older worker is harder. Many mineral producers interviewed complained of a lack of avail- able young male workers who can enter their establishments. To determine the merit of the mineral producers' complaint, a cohort of males 10-24 years of age at the 1950 census was compared to the same cohort 20-34 years of age at the 1960 census. Upon comparing the two totals, a pro- nounced contrast appears. In 1950 Vermont had a total of 42,831 males between the ages of 10-24, but in 1960 Vermont had only 32,609 males in the 20-34 age group (Table 15). Mortality cannot account for this TABLE 15.--Net out-migration of Vermont males in the decade 1950-1960 who were 10 to 24 years of age in 1950a (adjusted for mortality) Male Population 1950 Male Population 1960 Out-Migration 10-24 Years 20-34 Years 1950-1960 (000) (000) (000) 10-14 15,127 20-24 11,063 4,064 15-19 14,122 25-29 10.369 3.753 20- 24 13, 582 30-34 11.1.2.7. 1.39.5 Totals 42,831 32,609 10,222 Deaths 45gb Net Out-Migration 9,772 8Calculated from data contained in: U. 8., Bureau of the Census. WM Vol-I = Chem: WW Part 47: mm bEstimated from data contained in: Vermont, Depart- ment of Health. W. for the years 1950-1960 (annual issues: Burlington, Vermont: Queen City Printers, Inc.). decrease. The only explanation for this decrease is that a large 100 outdmigration of young males occurred during this decade. This loss of potential workers can be, in the long run, detrhmental to the mineral industries--especially if they are expanding. In the short run, however, if these industries are not expanding rapidly and the rate of retirement of older workers is not too great, the loss is not likely to hamper their operations to any extent. Although the problem of out-migration of Vermont's work ferce is not unique among states, it is of a greater magnitude than what other states containing competing mineral regions are experiencing. The nume ber of males 20-34 years of age residing in Vermont in 1960 was 22.8 per- cent less than it would have been if no net out-migration had occurred. Only Tennessee with a loss of 19.2 percent came near matching Vermont's loss of males by out-migration during the decade 1950-1960 (Table 16). An exhaustive pursuit of the reasons for such a large out-migration of Vermont's male youth is not within the scope of this study. It is possible, however, that a considerable number of the migrants entered military service and remained there. Lack of economic incentive probably encourages this exodus of Vermont's youth. The state of Vermont, as well as its mineral producers, should examine the reasons for this loss of human resources, for it is quite likely, although difficult to prove, that it is the most capable members of its population who are migrating in the largest number.1 ls... for example: Amos H. Rawley, MW ggmgunitz_§tzngtuzg (New York: The Ronald Press Co., 1950), pp. 344-45; Warren S. Thompson, W (4th ed.: New York: McGraw-Hill Book Co., Inc., 1953), pp. 303-05. 101 TABLE 16.--Net migration of and percent of males migrating from or to selected states during the decade 1950-1960 who were 10 to 24 years of age in 1950a Percent of Males Male Male Migrating Population Population Who were 10-24 Years 20-34 Years Net Migration 10-24 Years State in 1950 in 1960 Deaths In Out in 1950 VERMONT 42,83lb 32.609b 450° 9.772 -22.8 Tennessee 406,885 323,173 6,400 77.312 -l9.2 Maine 103.971 87.309 1,529 15,133 -l4.6 Pennsylvania 1,119,852 967,842 15,791 136,219 -12.2 Georgia 437,937 381,505 8,316 48,116 -ll.0 Minnesota 320,364 288,972 4,443 26,949 - 8.4 Wisconsin 368,955 342,337 5,711 20,807 - 5.6 Michigan 693,013 705,130 11,507 23,624 + 3.4 New York 1,410,193 1,489,458 20,507 99,772 + 7.1 aCalculated from data obtained by letters from: Dale E. Welch, Statistician II, Maine State Dept. of Health and Welfare, Augusta, Maine, Dec. 1, 1964; Elwood G. Brown, Assoc. Biostatistician, New York State Dept. of Health, Albany, N. Y., Dec. 1, 1964; R. D. Nashold, Director Statistical Services, Wisconsin State Board of Health, Madison, Wis., Nov. 25, 1964: Raja R. Indra, Demographer. Michigan Dept. of Health, Lansing, Mich., Dec. 2, 1964; Emerson W. Storey, Research Analyst, Minnesota State Dept. of Health, Saint Paul, Minn.. Dec. 2. 1964; Willie K. Boss, Statistical Supervisor, Georgia Dept. of Public Health, Atlanta, Ga., Dec. 1, 1964; William R. Dixon. Division of Data Processing, Pennsylvania Dept. of Health, Harrisburg. Penn., Dec. 7, 1964; Ann Dillon, Director of Statistical Service, Tennessee Dept. of Public Health. Nashville, Tenn., Dec. 10, 1964. bCalculated from data contained in: ' , Vol. I: P laugh. Part 4?: lament. cEstimated from data contained in: Health, (annual issues: Burlington, Vermont: Wages act as a strong attractive force to available labor. Wages U.S., Bureau of the Census, Vermont. Department of , for the years 1950-1960 Queen City Printers, Inc.). If Vermont's mineral establishments are to continue acquiring a good labor force. they must maintain a wage base comparable to other industries within and outside of the state. 102 Average weekly earnings in the mineral manufacturing (stone, clay; and glass) industries of Vermont compare favorably with most other manufacturing industries in the state.2 In the durable goods classifi- cation only machinery ($96.63) and electrical machinery industries ($92.69) pay higher weekly wages than do the stone, clay, and glass industries ($91.52), and only one of the non-durable goods industries, paper, with a rate of $93.13, offers average weekly earnings higher than the stone, clay, and glass group (Table 17). On the basis of weekly wages, Table l7.--Average weekly and hourly earnings in Vermont manufac- turing industries, 1963 Average Weekly Average Hourly Earnings Earnings Industries (dollars) (dollars) Durable Goods All Durable Goods 86.78 2.05 Machinery (excluding electrical) 96.63 2.33 Electrical Machinery 92.69 2.30 STONE, CLAY, AND GLASS 91.52 2.18 Furniture and Fixtures 87.24 1.89 Lumber and Wbod Products 65.83 1.56 Non-Durable Goads , All Non-Durable Goods 75.92 1.91 Paper 93.13 2.12 Printing and Publishing 89.82 2.24 Food 83.85 1.98 Textiles 62.24 1.73 Apparel 50.58 1.46 aCalculated from.data contained in: Vermont, Dept. of Employment Security, Ih2i1EnmQnI.LBDQISMQIE§L_E§H§l§LLEI. XVIII (January-December, 1963): and Vermont, Dept. of Employment Se- curity. W. I (January. 1964). Vermont's mineral manufacturing industries appear to be competitive with ZMining industries will be discussed later. 103 most other industries in the state. Hourly wages are higher in the machinery ($2.33) and electrical machinery ($2.30) classifications than they are in mineral manufactures ($2.18). One non-durable goods industry, printing and publishing ($2.24), has an hourly rate higher than do mineral manufactures. The paper in- dustry ($2.12) pays only a slightly lower rate. The stone, clay, and glass industries, however, compare favorably to the overall average hourly rate paid by all durable goods manufactures ($2.05), and they compare very well to all non-durable goods producers ($1.91). As is the case in the weekly wage rate, the attractive ferce for labor based on hourly wages appears to be substantial. An important feature of the wage structure not yet discussed is the difference in wage rates paid in mines and quarries and in manufac- turing establishments. For 1963 slate and marble quarrying establishments paid an average wage of $97.47 a week. This is 6.5 percent higher than the rate paid by the state's mineral manufacturing establishments. According to producers, the higher wages paid in quarrying is due to the difficulty of keeping workers in jobs that are dangerous and relatively unpleasant compared to the manufacturing establishments. The granite industry is an important exception to the general rule of wage differen- tials. Exceptionally high skill levels required in granite manufacturing demand higher wages. Granite sawyers, polishers, and carvers average $3.40 an hour compared with $2.30 an hour for quarrymen.3 How difficult is it for Vermont to compete effectively with other 3Interviewwith.Maurille J. Fburnier, Bus. Agent, Granite Cutters' International Assoc., Barre, Vt., July 2, 1964. 104 regions in wages paid to its mineral workers? Will their competitive position improve in the future? This last question is especially per- tinent because some scholars claim that past predictions of a gradual diminution in regional wage differentials in the United States have not proved true;4 therefore, Vermont's mineral producers cannot depend on their competitive position improving through a relative increase in wages paid in the South. An industry burdened with wage scales disproportion- ately above other regions is placed at a disadvantage in its profit margin unless worker efficiency offsets this liability. This does not mean that Vermont labor should work for a pittance and sacrifice its own well being for the sake of profits, but it does imply that labor must recognize the necessity for increased production through maximum worker efficiency. Although wage data are exceptionally difficult to obtain for specific mineral industries, some idea of Vermontds relatively high wages is presented in Table 18. Education, Labor Needs, and Training Programs Educational background and level of attainment are important when considering the qualities of labor. According to Mr. James S. Wélch, Director of the Industrial Division of the Vermont Development Department, this subject always arises when his office is attempting to persuade industrialists to locate in Vermont. In fact, educational attainment is, he claims, the second most important item to them in a list of 15.5 “See for example: E. mum Miller. WW (Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1962), p. 7. 5Interview with J. S. Wélch, Director, Industrial Division, Ver- mont Development Dept., Nov. 18, 1963, Montpelier, Vt. 105 TABLE l8.--Comparative Wage Rates for mineral industries in Vermont anngther states with competing regions E r—4- J T Average Hourly wage State (in dollars) VERMONT Granite (sheds and quarries). . . . . . . . . 2.85a Marble (mills and quarries) . . . . . . . . . I 1.75b Georgia Marble (quarries only). . . . . . . . . . . . 1.64c Tennessee Marble (mills and quarries) . . . . . . . . . 1.56c Maine Granite, Slate, and Limestone (all workers) . . . . . . . . 2.02 8Calculated from data contained in: Agreemeni_bsinaen ' .- _ -. ‘ ' .0!‘ 190:- _‘0.PM°. no ,_ a -M 6 ([h.p;]: Printing Union and Pressing Label Association [n.d] ); and Interview with.Mauri11e J. Fburnier, Business Agent, Granite Cutters' International Assoc., Barre, Vt., July 2, 1964. bCalculated from data contained in: Agzggmggt_bg1n§en V‘s”! Mb ‘ Moat - 9. _ e .01: 1.10 . .‘0 Pl‘d. f “eke M -Ma (Empfl : Printing Union and Pressing Label Assoc. [n.d;]). cData obtained by letter from William Peitler, Gen. Pres., International Assoc. of Marble, Slate and Stone Polishers, Rub- bers, and Sawyers . . ., Washington, D. C., Aug. 5, 1964. (Figure for Georgia represents the average maximum hourly wage.) dData obtained by letter from.Joseph E. A. Cote, Commis- sioner, Employment Security Commission, Augusta, Maine, Aug. 5, 1964. -!°. ‘9. An educated work force is only part of Vermont's industrial labor needs. Also important is an increased skill level in the labor force. The pace of technological change and automation grows each year. For every 100 skilled workers in 1955 the nation must have 122 in 1965 and it must have 145 in 1975.6 Time magazine recently made clear trends in 6'8h0rtage of Skills." Aaeriaanllaaaiianal_igurnal. XXXVI (May. 1961), 30. 106 education and skill needs at all levels of the work force when it stated, "Virtually all jobs now being created are for the skilled and the edu- cated; of the 1,500,000 jobs gained in the past year, 1963, only about 400,000 went to blue collar workers." These trends make it obvious that the skills of the lower segments in the work force must be upgraded.7 The necessity for upgrading also applies to workers in the mineral industries. Future mechanization, as it occurs, will make new demands on the worker's ability. Although some scholars of mechanization, such as Arnold W. Green, would argue that automation decreases the need for skilled workers,8 the introduction of machinery and even some automation has not decreased the need for high skill levels among workers active in quarrying and in finishing granite, marble, and slate. Educational level How does Vermont's male population compare with males for the United States as a whole and for other areas in its level of educational attainment? This question is important because in an age of changing technology workers need a good foundation upon which the development of competent skills can be built. When the median years of school completed for Vermont and United States males 25 years of age or more are compared, Vermont gives a fair showing. In 1960 the median number of school years completed in Vermont by all males 25 or over was 9.8; the national median for this group was 10.3. More germane to our problem, however, is a comparison of Vermont's 7"Employment: Room above the Bottom," Time. May 1. 1954. P- 87- 8"Technology and Utopia," Chapter XXVI, Sociology: An Analysis of Life in Modern Society (4th ed.; New York: McGraw-Hill Book Co., 1964), pp. 643-68. 107 status with areas containing competing mineral industries. Comparisons based upon county units in states containing major competing mineral industries show Vermont favorably, and this should be an advantage to the state's mineral producers (Table 19). TABLE 19.--Median number of years in school completed by males 25 years or older by major mineral producing counties in Vermont and other states in 1960a W State and County Median Years Completed VERMONT Rutland . . . Washington. . Lamoille. . . o 00 0\\’ CDHU‘HU Chittenden. Windsor . . Wisconsin Marathon.................. waushara. . . . . . . . . . . . . . . . . . Minnesota Stearns . . . . . . . . . . . . . . . . . . North Carolina 0 O O O O O O O O O O O O C O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O . . . . . O O O O O O O O O O O O 0 O O we»: F‘F‘ §>+Jg>c>c> (I) 0000 O 0 Cherokee. . . . . . . . . . . . . . . . . . 7.5 Texas musmflh. .... ... .... .... . 9d Pennsylvania Northampton . . . . . . . . . . . . . . . . 9.6 Georgia mbertOOOOOOOOOOOOOOOOOOO 8.2 Murray. . . . . . . . . . . . . . . . . . . 7.2 Pickens . . . . . . . . . . . . . . . . . . 7.4 Tennessee Knox. . . . . . . . . . . . . . . . . . . . 9.7 Michigan Presque Isle. . . . . . . . . . . . . . . . 8.8 Missouri Jasper................... 9.6 Jefferson . . . . . . . . . . . . . . . . . 8.8 New Ybrk StoLawrenceooooooeeooooeooo 906 Washington................. 9.6 aCompiled from data contained in: U.S., Bureau of the Census. W. Vol. I: W W- 108 Euinraalabar_needs_and_trainiaa_arasraas What is the outlook for future labor needs in Vermont's mineral industries? A recent study made by the Vermont Department of Employment Security that included a large number of the state's mineral producers shows that several of these industries do not expect to add a large number of workers to their payrolls during the next five years (Table 20). TABLE 20.--Future labor needs in Vermont's mineral industriesa Total Employment Total Employmentc Expected in Five Percent Industryb as of June 1963 Years Increase Granite 1,853 1,875 1.2 Marble 1,306 1,306 0 Slate 319 348 9.1 Talc and Asbestos 351 389d 10.8 Sand and Gravel l6 l6 0 aCompiled from data obtained by letter from Gordon H. Ladd, Chief, Research and Statistics, Dept. of Employment Security, Montpelier, Vt., Oct. 25, 1963. bIncludes 75 employers in granite, 4 in marble, 13 in slate, 3 in asbestos and talc, and 2 in sand and gravel. (Does not include all firms. cIncludes those in training and present vacancies. dPersonal interviews determined that over half of this increase will occur in the talc industry. A new plant for processing talc has recently been constructed near the village of Reading. Why should producers expect to add so few new workers? This question was explored through numerous interviews and the general ques- tionnaire. Some small producers claim to have little desire to expand. They want only to earn a living from the business and, if possible, to remain the same. A large number of granite producers and the two major marble manufacturers expect that the market for monuments will remain rather stable and that mechanization will reduce their requirements for 109 unskilled labor.9 The rate of mechanization and automation in mineral industries is at times relatively slow when compared to most other industries. In Vermont's mineral industries the process of’mechanization and automation is underway, but the rate of progress in some is indeed slow.lo Although progress is being made, mineral producers, nevertheless, should look to the future, for it will increasingly demand greater mechanization, and with this demand will come, as many scholars predict, a concomitant ad- vance in the demand fer increased skills and specialized training.11 The worker will continue to need an intimate knowledge of his raw'material, but he will, also, likely be required to operate new and more complicated machinery where decisions must be made that will maintain a steady flow of production-~decisions that may often mean the loss or saving of thou- sands of dollars in equipment or raw materials. Therefore, the future requirements for a skilled labor pool is a crucial issue for consideration 9Interviews with Lorenzo Chiodi, Co-owner, Medern Granite Co., Barre, Vt., Dec. 19, 1963; Roe McKenzie, Vice Pres. of Personnel, Rock of Ages Corp., Graniteville, Vt., Dec. 7, 1963; Mlliam Roy, Gen. Mgr., wells-Lamson Quarry Co., Inc., Websterville, Vt., Nov. 1, 1963; Ernest Hennis, Office Mgr., Adams Granite Co., Barre, Vt., July 2, 1964; A. T. Howe, Vice Pres., Vermont Marble Co., Proctor, Vt., Dec. 6, 1963; Erling 0. Olmland, Asst. Seey., Green Mountain Marble Co., W; Rutland, Vt., July 1, 1964. loExtensive observation in slate mills and quarries, in the tale mines and processing plants, and in the granite sheds of Vermont verify this contention. 1J'See for example: J. Roland Ingraham, "Education and Unanploy- ment." Amarisan_laaaiianal_iauznal. XXXVII (May. 1962). 9-10. 31: Harold H- Punke, "Implications of Automation," Am3gigan__g§atigngl_lguznel, XXXIV (December, 1959), 26-28, 31; Heward L. Hurwitz, "What Shall We Teach about Automation?" §2g1a1_Eduga_1gn,, XXVII (October, 1963), 301-04; Seymour L. Wblfbeln. "Antamation and Skill.“4Iha_Annals_af.1he_lmariaan_Acadsmx_af WW. CCCXL (March. 1962). 53-59 110 by Vermont's industries if they hope to remain competitive and to grow. To be adequately prepared for the future, these industries need active training programs based upon a concept of replacing workers who retire from the labor force and upon filling new positions created through technological advancement. A study made by the Vermont Department of Employment Security shows that producers in the various mineral industries have many posi- tions they consider "hard-to-fill" (Table 21). ‘With their obvious awareness of these many positions, it is indeed strange that so little provision is made by most of the mineral producers and the industries, as a whole, to provide for trained personnel in the future. Of the major mineral producing industries in the state only the granite industry is making a concerted effort to train skilled workers. In February 1964 the Barre Granite Association had 25 men in apprentice- ship programs, training for positions as draftsmen, stonecutters, polishers, sawyers, and sandblasters.12 The United States Department of Labor in March 1964 gave the Barre Granite Association a federal grant of $65,000. These funds made available under the Manpower Development and Training Act have provided for the training of 20 stonecutters.13 The public school system maintains an extensive training program under what is known as the Barre School of Memorial Art. The main emphasis of instruction is on training draftsmen. Barre granite establishments work with the public school system in training granite workers. Students work in the 12Letters from Milton V. Lyndes, Gen. Mgr., Barre Granite Assoc., Barre, Vt., Feb. 19, 1964; Albert A. Fraser, Secy., Vermont Apprentice- ship Council, Montpelier, Vt., Feb. 21, 1964. 13Rutland Dail Herald, March 5, 1964, p. 3. 111 'TABLE 21.--Current vacancies, hard-to-fill positions, and number of'men in training in Vermont's dimension stone industries as of June, 1963a Current Hard-to-Fill Men Industry Vacancies Positionsc In Training Granite Draftsmen 0 9 3 Foremen 0 5 0 Stonecutters 1b 26 16 Polishers 0 13 2 Sandblasters 0 ll 2 Sawyers 0 9 2 Derrickmen 0 4 0 Maintenance 0 61 0 Managers 0 9 0 Marble Channel and Drill Operators 0 27 0 Quarrymen O 30 0 Finishers 3 ? 0 Slate Rockmen 0 21 O Splitters b 14 O Sawyers l 5 O Cutters 0 3 0 Trimmers 4 9 0 Hoist Operator 1 T 0 Maintenance 0 l O Foremen l 5 0 aCompiled from.data obtained by letter from Gordon H. Ladd, Chief of Research and Statistics, Dept. of Employment Security, Montpelier, Vt., Oct. 25, 1963. bPersonal observation, July 2, 1964, at the GCIA union office, Barre, Vt., showed six positions open for stonecutters. cThe hard-to-fill column has no direct relationship to the other data; the figures given represent the number of persons em- ployed in occupations that employers consider as hard to fill. sheds or offices when not attending their regular school classes. and upon graduation they are nearly ready for a position as a journeyman. Depending upon the skill requirements of a particular job and union regulations. these apprenticeship programs take from three to five years to complete. Other mineral industries have used little foresight in meeting 112 potential labor needs. The marble industry, with 57 positions listed as hard to fill has no training program. Slate producers list 58 positions as hard to fill but do not maintain any training program. Yet, some of these same producers claim that one of their greatest difficulties is obtaining trained personnel.14 An added argument can be given for the establishment of training programs if the overall skill levels of workers in the different mineral industries are considered. In the granite industry, which has a rather large training program, almost 30 percent of the workers are considered skilled and another 26 percent semiskilled. The slate industry has over 35 percent in the skilled category and 43 percent in the semiskilled cate- gory; the marble industry has 16.5 percent and 26 percent in these cate- gories respectively. The asbestos and talc industries, grouped together, have nearly 23 percent in the skilled classification and 24.5 percent in the semiskilled grouping (Table 22). When these workers retire, replace- ments cannot be trained overnight! Yet, public officials responsible for training programs in Vermont contend that it is difficult to obtain an adequate participation of employers.15 In fact, the Secretary of the Vermont Apprenticeship Council, Albert A. Fraser, states that they (the Council)have never been "approached to be of assistance" in setting up programs for training skilled craftsmen by any of the members of the 1I'I'Interviews with Clement J. Perfetti, Gen. Supt., Green Mountain Marble Co., W. Rutland, Vt., Sept. 23, 1963; A. B. Potter, AB Potter Slate Co., Poultney, Vt., Jan., 1964; William Prehoda, Pres., Prehoda Brothers Slate Corp., Granville, N. Y., Jan. 16, 196“ (all of Prehoda's establish- ments are in Vermont). 15Letters from Fraser; and John A. Conway, State Supervisor, Bureau of Apprenticeship and Training, U.S. Dept. of Labor, Burlington, Vt., March.20, 196“. 113 TABLE 22.--Percentage distribution of employment in the various mineral- industries of Vermont by occupation and skill level as of June 1963a Percent Distribution Talc and Sand and Occupation Group Granite Marble Slate Asbestos Gravel Professional and Managerial 9.6 3 6 2.6 11.4 Clerical and 18-8 Sales }8.2 }9.0 }3.9 5.7 Service 2.6 Craft and Manual Occupations 82.2 87.4 93.5 80.3 81.2 Skilled 29.9 16.5 35.3 22.8 -- Samiskilled 26.2 26.1 43.1 24.5 81.2 Unskilled 7.9 2.8 10.1 14.5 -- Skill Level Unknown 17.0 41.9 4.9 18.5 -- Apprentices 1.2 -- -- -- -- Total 100.0 100.0 100.0 100.0 100.0 aCompiled from data obtained by letter from Gordon H. Ladd, Chief of Research and Statistics, Dept. of Employment Security, Montpelier, Vt., Feb. 24, 1964. This data is based upon replies by employers to an occupa- tional survey of June 1963. marble, slate, talc, or asbestos industries. He believes, however, that there are many opportunities for developing skilled training programs in some of these industries--especially for mechanics.l6 His belief is surely justified because as added mechanization and automation occur in the future, needs for mechanics will also increase. Although the Council has never been approached for aid, it has, nevertheless, attempted several times to set up training programs in cooperation with Venmont's largest marble producer, the Vermont Marble Company. All attempts have failed.17 Various reasons are offered to explain the lack of programs for 16See for example: Arnold R. weber, "The Rich and the Poor: Employment in an Age of Automation,“ figgiglhfigryig§_fl§11gg, XXXVII (Sep- tember, 1963), 252. 17Letter from Fraser. 114 training men in these industries. The workers' lack of desire to parti- cipate in an extended training period is an example. One manager in the granite industry pointed this out as especially true in training carvers. Training a carver requires 5 to 12 years. Also, because of the time and cost involved in training carvers, management hesitates to make an invest- ment in a worker who may leave for another position. The result is that most carvers are brought from foreign countries.18 Other reasons given for the lack of training programs are: (1) older employees are suspi- cious of training programs, and employers fear these suspicions may cause a disruption in harmony, (2) employers are fearful that such programs will mean more government interference in handling their business, and (3) employers fear meddling by labor unions desiring to have a say in the type of training program to be established.19 Are these reasons enough? An emphatic "no" is the answer. With such large proportions of their workers in the skilled classification, the slate, marble, talc, and asbestos industries should give careful consideration to the practicability of training programs through appren- ticeship. This is especially true since a large number of job types are listed by the employers themselves as hard to fill. If management ex- pects to update production methods through mechanization and automation, if management expects to maintain its present position in the market 18Interview with Roe McKenzie, Vice Pres. of Personnel, Rock of Ages Corp., Barre, Vt., Dec. 7, 1963. 19Letter from A. A. Fraser, March 6, 1964. One writer, Felician Fbltman, in a review of Kate Liepman's book on apprenticeship brings out one of her main points that management and labor view apprenticeship training from a different standpoint--labor as a means of controlling the labor supply and management as a source of labor. Felician Foltman, Reviewof ,- 3 _; 9!; w in 1‘. My- 0: Mod 9 Qandiiians by Kate Liepman. ladusitial_and_Lahaz_Rs_ian XIV (July. 1961). 645-47. 115 place or to have any added growth with the greatest efficiency, it should take steps to maximize the fulfillment of these expectations. Labor Turnover Rates 20 Labor turnover rates are to some extent indicators of worker satisfaction, labor-management relations, efficiency of worker selection, or as stated in an article appearing in the Intergatigggl_Lgpgr_fi§yi§H, the age (maturity) of an industry--older industries usually have less labor turnover.21 Excessively high labor turnover rates can decrease plant efficiency and lower worker morale. It is also expensive for employers to train men only to have them quit shortly thereafter. The average national labor turnover rate for all manufacturing workers during the period 1955-1962 was annually 8.22 percent;22 national labor turnover rates for stone, clay, and glass manufacturing from 1958-1963 annually averaged 7.63 percent.23 Vermont's turnover rate in manufacturing mineral industries for the period 1958-1963 was only 6.17 percent. Compared to the national average, Vermont's labor turnover rate is low (Table 23). Unfortunately Venmont's rate cannot be compared to specific mineral industries in competing areas in other states because of nondisclosure rules and lack of data. In fact, only a few states can 20Refers to the percent of worker accessions (new hires and recalls) and separations (quits, layoffs, and discharges) made by employers as compared to the average annual total employment. 21“Labour Turnover--Meaning and Measurement,“ Intgznatigngl_Lapgz Ram: LXXXI (July: 1961): 5200 22The Conference Board, W (New York: The National Industrial Conference Board, 1964), p. 39. 23Calculated from data obtained by letter from Robert O. Dorman, Chief, Division of Industry Employment Statistics, U.S. Dept. of Labor, washington, D. C., July 13, 1964. 116 TABLE 23.--Average annual labor turnover rates in the mineral manufac- turing industries in Vermont, 1958-1963a Average Types .u___Aanua1.A1arage_iin_aazaanil____n for of Turnover 1958 1959 1960 1961 1962 1963 1958-1963 Total Turnover 4.9 7.5 6.2 5.6 6.3 6.5 6.17 Total Accessions (hires and recalls) 2.5 3.4 2.9 2.9 3.1 3.4 3.03 New Hires 1.6 2.3 2.0 2.2 2.3 2.4 2.13 Total Separations 2.4 4.1 3.3 2.7 3.2 3.1 3.13 Quits .9 1.4 1.3 .7 1.2 1.3 1.13 Layoffs .8 1.3 .7 .8 .7 .6 .82 Discharges .7 1.4 1.3 1.2 1.3 1.2 1.18 aCalculated from data obtained by letter from Gordon H. Ladd, Chief of Research and Statistics, Dept. of Employment Security, Mont- pelier, Vt., Feb. 24, 1964, and June 29, 1964. These are average annual rates per 100 employed workers. Rates for the quarrying segment of the mineral industries are not available. be compared at all. But for those two states that can be compared-- Georgia and Massachusetts--Vermont's rate is high (Table 24). TABLE 24.--Comparative total labor turnover rates for mineral manufacturing workers in Vermont and Annual Average State (in percent) VERMONT O O O O O O O O O O O O O O 6 0 17 Georgia . . . . . . . . . . . . . . 5.85 Massachusetts . . . . . . . . . . . 4.71 aCalculated from data obtained by letter from.Robert O. Dorman, Chief, Division of Industry Employment Statistics, U.S. Dept. of Labor, ween- ington, D. 0., July 13, 1964. The quit rate, a direct measure of worker satisfaction, is also below the national average in Vermont. According to John Perry, a labor- management consultant to the Small Business Administration, quit rates ll? of more than 3 percent a month require remedial action?!+ Vermont's rate for 1958-1963 averaged 1.13 percent; the national average for the period 1955-1962 was 1.46 percent. Even though this comparison is favor- able to Vermont, the small number of quits may actually reflect a lack of alternative opportunity and not worker satisfaction.25 Since quits and layoffs do not account for total separations, the remainder stems from company requests--discharges. Perry says that monthly labor discharge rates should be well below one—half of 1 percent (6 percent annually). If they are more, remedial action in hiring procedures is needed. At the same time, he points out that an annual rate of 2 percent can be considered very low.26 On this basis, Vermont's mineral manufacturing establishments have a very unfavorable discharge rate--an annual average of 1.18 percent (14.16 annual rate) during 1958-1963. This rate is well above the national average of .56 percent (6.72 annual rate) for the period 1955-1962.27 According to several mineral producers, the labor turnover rate in quarries is considerably higher than in manufacturing plants. Mr. Ralph E. Williams, President of the Vermont Labor Council, estimates that the turnover rate in the state's marble quarries is as high as 20 percent annually; but a representative of one of the major marble 2“John Perry, Human Relations in Small Industry, Small Business Management Series No. 3 (2nd ed.; washington: U.S. Government Printing Office, 1954), p. 26. 25See for example: Charles A. Myers, Labor Mobility and Economic Opportunity (New York: John Wiley & Sons, Inc., 1954). 26Perry, loc. cit. 27The Conference Board, loc. cit. 118 companies cites their annual rate at 120 percent!28 Mr. John C. Lawson, National Executive Director of the United Stone & Allied Products workers of’America concurs in the opinion that turnover in the marble quarries is high, but he claims the rate is low in the state's granite quarries.29 The higher turnover in marble quarries may be due partly to the greater hazards and unpleasantness of underground work. Because of the opinions expressed by members of'management and labor that turnover rates are es- pecially high in some quarrying establishments-~with one firm's documented at 10 percent monthly--more intensive study is needed to determine the reasons fer this condition. Although maintenance of labor turnover records can be helpful in determining reasons fOr quitting and can aid in detecting inadequacies in pay scales,30 only 3 of the 42 firms responding to the general question- naire designed for this study said that they keep such records. Even though discharge rates in Vermont's mineral establishments are not high, many producers could likely benefit by setting up more systematic pro- grams for obtaining workers or for moving workers to more suitable posi- tions within their firm. Extensive interviews, as well as answers received to the general questionnaire, indicate that few, if any, personnel records are kept by most firms. This failure is evident in the lack of records covering ab- senteeism, accidents, and personnel in general. Many establishment owners ZBInterview with Ralph E. Williams, Pres., Vermont Labor Council, Rutland, Vt., March 13, 1964; and answers on confidential questionnaire. 29Interview, Barre, Vt., July 2, 1964. 30"Labour Turnover o e 09. m0! p0 5170 119 and operators have only the vaguest notion of what these rates are. Such records, if'properly used, can lead to better personnel management, a more efficient utilization of human resources, and, consequently, greater profits (Table 25). TABLE 25.--Number of Vermont mineral producing firms main- taining personnel records based on 42 firms responding to the general questionnaire Type of Record No Yes No Response Labor Turnover 34 3 5 Accident Rates 19 18 5 Absenteeism 21 17 4 Unionization and Labor-Management Relations Mutual understanding by management and labor of the problems confronting the other is necessary fer harmonious relations. When either fails to respond to the need fer compromise, the consequences are often strife, hostility, and financial waste. Labor and.management in Vermont's mineral industries have not always held to the principle of compromise. Strikes have occurred at one time or another in most of the major mineral industries, such as copper, marble, granite, and slate. Neither management nor labor could claim complete victory in settling these disorders for in the long run each stood to lose either in profits or wages. The task here though is not to discuss the entire groundswell of the Vermont labor movement nor management's attempts to stem its onrush, but rather it is to view present conditions of labor-management relations and their implications for the future. fluinnizaiian Nearly 70 percent of the approximately 175 mineral firms in the 120 state are unionized (Table 26). Although Vermont's mineral industries TABLE 26.--Number of firms unionized in Vermont mineral industries as of July, 1964a Number of Firms Total Number Mineral Industry Unionized of Firms Granite 115 125 Marble 2 8 Slate 3 18 Talc 1 2 Asbestos l 1 Sand and Gravel O 11 Brick 0 2 Concrete Block 0 9 Limestone O 2 aData compiled from personal interview with John C. Lawson, Executive Secretary of the United Stone and Allied Products Workers of America, Barre, Vt., July 20, 1964; and letter from Maurille J. Fburnier, Bus. Agent, Granite Cutters' International Assoc. of America, Barre, Vt., July 7, 1964. cannot be considered strongly unionized in total firms organized, approxi- mately 78 percent of the state's 4,750 mineral employees work for union- ized firms. Vermont's granite and.marble industries are largely unionized, but most of the remainder are only partially organized and some not at all. The granite industry is the most unionized of all Vermont's mineral industries. With one exception, only the very smallest firms remain unorganized. The granite industry has two unions. Shed workers, in- cluding cutters, polishers, draftsmen, and tool Sharpeners, are members of the Granite Cutters' International Association of America (GCIA). Quarrymen, boxers, and derrickmen belong to the United Stone and Allied Products Wbrkers of America (SAPW). Both.unions are affiliated with the AFL-CIO. The SAPW also represents all classes of workers in the unionized 121 slate and marble establishments. Unionization in the marble and slate industries is not nearly so strong as it is in the granite industry. Of the 5 major slate producers, only 3 are unionized. None of the 13 re- maining smaller firms is organized. Among the 8 marble producers, only 2 are unionized-~the Vermont Marble and Green Mountain Marble Companies. This, in effect, encompasses most workers in the industry--l,270 of a total 1,300; but in spite of this numerical strength, union officers do not consider their position in the industry strong (to be discussed in greater detail later). La - i The topic of labor-management relations, although very important to an analysis of Vermont's mineral industries, is also an exceptionally difficult research area. The strong sentiments involved make hazardous the task of determining fact from emotional exaggeration. Consequently, the subject of labor-management relations was handled as much as possible through a non-directive approach. Its application to management was fairly successful but was difficult with labor because questions could not be brought out indirectly. In spite of this limitation, a concerted effort was made: (1) to detect the general rapport and appreciation of the necessity for cooperative effort by labor and management in Vermont's mineral industries and (2) to ascertain both labor and management's attitudes toward increasing the competitive position of the various industries through automation and increased efficiency, on the one hand, and incentives, on the other. W. The many different mineral producers interviewed expressed a wide range of opinion regarding labor, labor 122 unions, and labor-management relations. Some producers are outwardly hostile toward any efforts at organizing labor, and they feel that labor little appreciates management's problems. Others feel that labor, whether unionized or not, is making an honest effort in helping management meet competition and in maintaining a cooperative relationship. The most violent encounter with anti-unionism occurred in a granite establishment. Each time the topic of unions arose the inter- viewee went into a tirade. At one point the employer called an employee away from his work and demanded of him, "Tell this man what you think of unions. . . ." The employee dutifully proceeded to reprove the labor unions. According to these two men, attempts out of Barre had been made to organize them, and when mild persuasive tactics failed, the unions had resorted to threats of violence.31 Mr. Ralph E. Williams, President of the Vermont Labor Council (VLC), described another case of overt hostility. When six employees of Tatko Brothers Slate Company in Poult- ney, Vermont, attempted to organize the company's workers, management discharged all six.32 This firm is now unionized and the six men have been re-employed. Others are less openly hostile to unions and union efforts at organization, but they are attempting to avoid unionization through offering benefits comparable to those received under the unions. Many offer paid vacations, insurance, and other fringe benefits. Management of one slate firm, to obviate any efforts at unionization, purposely 31Interview-with Fred Garand, Owner, Garand-Teed Quarries, Inc., Adamant, Vt., Dec. 19, 1963. 321nterview with a. E. Williams. 123 pays its employees an average of 11 cents an hour above the union's minimum wage and also maintains, for each worker, a company sponsored $5,000 lifeinsurance policy.33 In most firms unionized there seems to be mutual respect between labor and management with only a few instances of underlying hostility. What might be termed "tolerance," rather than acceptance of labor unions, was detected in several of the establishments of the Vermont Marble Company. Vermont Marble has experienced several strikes during its history and was not effectively unionized until 1935. Mr. Williams, VLC President, claims that Vermont Marble has a standard policy of attempting to siphon off into management positions capable shop stewards.3u The author observed an instance of this practice not at Vermont Marble but during a joint labor-management interview at Rock of Ages Corporation. Labor's representative, Mr. George Quillia, Secretary-Treasurer of the Graniteville-Branch of the GCIA and a plant worker for Rock of Ages, was to be promoted in the near future to a junior executive position in the 35 corporation. Citing this example is not meant to serve as an indictment of management's motives. This practice could often have a positive effect in maintaining cordial labor-management relations and in helping 33Interview with Ryan T. Oakes, Plant Mgr., Vermont Light Aggre- gate Co., Castleton, Vt., March 3, 1964. Similar situations were en- countered during interviews with A. B. Potter, Owner, AB Potter Slate Co., Poultney, Vt., Jan. 22, 1964: Gaylord Baker, Owner, Baker Slate Tile Co., Poultney, Vt., Jan. 2, 1964; James Ticehurst, Office Mgr., The Vermont Associated Lime Industries, Inc., Winooski, Vt., Sept. 6, 1963. 34Interview with R. E. Williams. 35Joint interview with George Quillia, Secy., Graniteville Branch of the GCIA, and Roe McKenzie, Vice Pres. of Personnel, Graniteville, Vt., Dec. 7, 1963. 124 a firm stregthen its management staff. Another case of management's "tolerance” of labor rather than acceptance is evidenced in the slate region. The president of one of the larger slate firms, during two separate interviews, commented that "The biggest mistake we ever made was to let the unions in.” This es- tablishment was not unionized until 1961.36 Attitude§_gf_labgr. One limitation in the scope of data collected on attitudes present in labor must be noted. Every attempt to meet with labor leaders at the "local" level of organization, with the exception of one union officer in the granite industry, resulted in failure. The presidents of the various labor locals either failed to answer requests for interviews or referred the request to Ralph E. Williams, President of the Vermont Labor Council. When this was brought to the attention of the VLC President, he expressed the opinion that the reason for the local labor leaders' reluctance to see outsiders was that many of the minor union officers neither really know how their union functions, nor are they acquainted with the contents of their immediate contracts. Yet, when requested to aid the author in seeing members of I'grass roots" labor, the President of the VLC made no effort to help.37 Every labor leader interviewed, including Mr. Williams, however, was quite coopera~ tive and willing to discuss freely any questions raised. Labor leaders' foremost complaint about management is its in- difference to what they feel are legitimate on-the-job grievances. Un- settled grievances have several times resulted in "wildcat“ strikes. 36Name withheld to protect interviewee. 37Interview'with R. E. Williams. 125 Recently this problem arose in the granite industry. A foreman made repeated derogatory comments about his men's work; the workers informed management they would no longer work under him. Management would not remove the foreman, and the workers walked out in an unauthorized strike. Short-sightedness on the part of both management and labor resulted in losses to both parties, especially since this was the rush season. According to Mr. Maurille J. Fournier, Business Agent for the Barre Local of the GCIA, misunderstandings like this are his greatest problem.38 Mr. John C. Lawson of the SAPW described similar cases attributable to what might be called a lack of "preventive maintenance" in labor- 39 management relations. In spite of minor difficulties no major strife has occurred in the granite industry since 1952 when there was a five-month strike. No strikes have occurred in the marble industry since 1935-1936 and none in the slate industry since 1962. Most labor-management difficulties are settled through grievance committees. As stated before, care must be used in making generalizations about attitudes, but one important point must be brought out in conjunc- tion with labor's attitude toward production efficiency. Field observa- tions in several granite establishments show that certain union regula- tions and worker practices retard production efficiency. For example, when a granite cutter, as a manber of the GCIA, finishes with a piece of stone, he is not allowed to move it, regardless of its size. The smallest 'base piece must be moved either by'a lumper (general laborer) or a 38Interview, Barre, Vt., July 2, 1964. 39Interviewwith J. C. Lawson. 126 derrick operator-~both of whom belong to the SAPW. This problem is especially emphasized when the overhead crane is occupied for a long time. When the crane is needed to change large stone blocks at the wire saw tables, the cutters are supposed to indicate whether they will need a new stone during this period. They do not always do this, and the result is that they may be idle 20 minutes or more.“0 Because a cutter is prohibited from having more than one piece of stone at hand, the crane operator cannot "bank” stones so as to reduce idle time. Also, workers start a few minutes late and quit a few minutes early.)41 To put it bluntly, these practices exemplify featherbedding and cannot but reduce the competitive position of Vermont's granite establish- ments. Such a statement has added justification when one notes that labor in the granite industry has for the past two years received an annual 5-cent hourly pay increase. If negotiations are not reopened for a new contract in 1965, the union members will receive 5-cent an hour increases in 1965, 1966, and 1967. Although granite producers have a 'vested interest in not emphasizing a large profit margin, some credence should be given to the opinions expressed by several producers that they have had to absorb recent wage increments because they have not quield observations at the Valz Granite Co., Barre Vt., July 20, 21964; Jones Brothers Granite Co., Barre, Vt., Nov. 1, 1963; Alexander Milne (Granite Co., Barre, Vt., July 20, 1964; Giudici Brothers Co., Inc., Barre, Vt., July 20, 1964. ulField observations at Associated Granite Co., Barre, Vt., July'ZO, 1964; Valz Granite Co. Interviews with Aldo Vanetti, Co-owner, ‘Valz Granite Co., July 20, 1964; Steven Juda, Plant Mgr., Ulse & Perojo Granite Co., Barre, Vt., July 20, 1964. 127 been able to increase prices for monuments.“2 When questioned about this problem, Mr. Lawson of the SAPW'scoffed at the idea of the pro- ducers' having to absorb the costs. That labor in the granite industry does not produce at its maximum.was, however, indirectly admitted by Lawson. He discussed how some employers, to increase production, lease certain machines in their sheds to individuals who set up what is ac- . tually a small but independent firm under the same roof. After changing {— to this status, the men are paid by the piece and the output usually g0es up by one-third.43 , Vermont's mineral industries in the past have been slow to adopt new production techniques and have failed to maintain adequate plant facilities and equipment.“4 Why should this be true? Perhaps manage- ment may have felt little need to implement labor saving devices because of a docile and weakly organized labor force, but. on the other hand, employers may have delayed displacing workers through fear of creating labor tensions. Perhaps the lag in Change was due to labor unions effec- tively fighting attempts of management at mechanization and innovation. This last argument is probably the least plausible explanation because it is the unionized establishments that show the greatest acceptance of uzInterviews with S. Juda; A. Vanetti; Clarence Ross, Plant Mgr., Alexander Milne Granite Co., Barre, Vt., July 20, 1964; Hugo C. Giudici, Co-owner, Giudici Brothers, Inc., Barre, Vt., July 20, 1964; Wilfred J. Fisher, Owner, Apex.Memorial Co., Barre, Vt., July 20, 1964; Wéndelin J. Beck, Pres., Beck & Beck Granite Co., Barre, Vt., July 20, 1964; Henri Vaillancourt, Co-owner, Colonial Granite Co., Barre, Vt., July 20, 21964; Louis C. Simoneau, Plant Mgr., Associated Granite Co., Barre, Vt., July 20, 1964. 43lntervicw with J. C. Lawson, July 20, 1964. “This claim will be developed more fully in a later chapter. 128 new methods and machinery. During several interviews, management pointed out that unionization and its associated wage increases made it impera- tive that they increase their plant productivity and efficiency if they hoped to ranain competitive. Although change has been slow in Vermont's mineral industries, it shows evidence of increasing its pace, but the pace of change must quicken. Both labor leaders and management for the most part now recognize the necessity for increased mechanization and automation in the state's mineral industries. Only a few within their ranks would likely discredit the truth in a statement made by Dr. Norton E. Long of Northwestern University where he says, “The cruelty of change is [:in realitfl a kindness that enables survival."u'5 Each of the four labor leaders interviewed said that most union members recognize the need for advances in production efficiency, but they resent sudden and unexpected changes. Although most members of labor and management recognize the need for increased efficiency, resist- ance to mechanization, automation, and change in general is, however, always present to some degree among both groups. For example, Mr. Elgo Zorzi, Superintendent at a granite firm employing 15 workers, claimed that when he told a long-time employee of his plans to set up an automatic lift that would eliminate his manual handling of stone, the worker informed him that the day the machinery was installed, he was leaving.“6 When Rock of Ages installed two huge automatic polishers in its shed, some workers complained but soon accepted the change. According “5"The Corporation and the Local Community, " W2 . . ' , (o :1 , CCCXLIII (September, '?f 1962) , .12”. 8 46Interview with Elgo Zorzi, Supt., Adams Granite Co., Inc., Barre, Vt., July 2, 1964. J 129 to Mr. Roe McKenzie, Vice President of Personnel for the corporation, some members of management also resisted the installation of these ma- chines.)+7 These two brief illustrationssfixnvthat the problem of automa- tion and change exists among both small and large establishments, and that resistance to them arises even among management. Future needs for increased automation can be implemented with greater ease if effective means of communication are established to inform both labor and manage- ment of automation's implications for their establishment.“8 It is hardly necessary to pursue in detail the reasons for resist- ance to automation. It is well known, from the mass of literature avail- able on the subject, that the basic fear is displacement of the individual worker. Nearly all scholars of automation agree that considerable temporary unemployment occurs from most advances in mechanical technology, but they do not agree on how much permanent unemployment it will create, if at all.“9 Although not comparable with other industries, the impact of automation and mechanization on manpower needs in the mineral indus- tries has been considerable. In 1901 approximately 3,000 granite workers jproduced 152,000 short tons of stone; in 1961 only 1,800 workers produced ”Interview with R. McKenzie. 1+8See for example: A. M. Sullivan, "Management's Fight Against Technophobia.” WWW. LXXVII (April. 1961). 63-64. 49See fOr example: Arthur J. Goldberg, George Meany, and John I. Snyder, "Is Automation a Boon or a.Menance?“ Mill_gnd_£ggtgzy, LXX (February, 1963), 65-70; Joseph A. Beirne, "Facing up to the Problems of Automation.” Chapter III W (Washington: Public Affairs Press, 1962); Edward B. Shils, MW mentions (New York: Holt, Rinehart and Winston, 1963); Walter Buckingham, "The Great Unemployment Controversy, " W CCCXL (March 1962). 46-52. 130 78,000 short tons.5O If this does not seem impressive, it should be remembered that the work period is now considerably shortened from the 55-hour work week prevalent at the turn of the century. Many of the mechanical devices now being introduced into the mineral industries only partially change their labor requirements because most machines continue to need supervision. This is illustrated in the granite industry where an automatic sandblasting machine was recently installed in a very up-to-date establishment. The machine's operation requires a man in attendance to see that a mechanical or rubber matting 51 failure does not occur. A fear of labor associated with automation is illustrated in this particular example of technological change. Because this automatic sandblast machine's operation does not demand the worker's constant attention, the employer feels that,during spare moments, the operator should be cutting out designs in rubber matting for use on the next monument. The GCIA is presently attempting to change this practice under the pretext that the worker is responsible for the stone in the machine but cannot give his full attention to it.52 According to Mr. Craig White of the Barre Granite Association, management does not hold the worker responsible for damage to the stone while he is busy cutting patterns. Mr. White claims that what really bothers labor here 50Tonnage data obtained by letter from Perry Cotter, Commodity Specialist, U.S. Bureau of Mines, thhington, D. C., July 17, 1964; and Perry Cotter and Nan C. Jensen, Minerals Zearpogk: l26l, Vol. I: Stone, U.S. Bureau of Mines (washington: U.S. Government Printing Office, 1962), p. 2. 51Rubber matting containing cut-out designs is cemented to the monument. The sand cuts into the monument only in the unprotected area. 52Interview with M. J. Fournier. 131 is a supposed speed up in the work expected.53 Edward Shils in his book Autamaiian_aad_ladustrial_fla1aiians claims that this kind of problem is usually limited to the introductory stages of new methods and machinery 54 use. Some changes in production methods and machinery replacement were noted during nearly every field observation. New plant facilities are also under construction in several of the industries. These ac- tivities are encouraging, but a much greater effort is needed if Vermont's mineral industries are to remain competitive. Both management and labor must do their best to implement these changes in an atmosphere of harmony. Summary and Conclusions The qualities of a labor force are important to the success of an industry. A favorable age structure and a good education are espe- cially important. Vermont's educational level compared with competing areas on a county basis is favorable. The labor force in Vennont is older than the national average. This, in conjunction with a large out- migration of young males, could be detrimental to Vermont's future labor pool. Some producers feel that age is an asset because of the older worker's high-skill level. Other producers view age as a liability because the older worker is harder to train. With technological changes now underway and the likelihood that some retraining of production workers will be needed, this argument has considerable merit. Vermont's mineral manufacturing industries have a relatively high 53Intervisw with Craig C. White, Mgr., Member Services, Barre Granite Assoc., Barre, Vt., July 2, 1964. 548hils, M, p. 244. u 5- ‘Viln 132 wage rate when compared to other industries in the state. Only ma- chinery and paper industries pay higher weekly rates, and only machin- ery and publishing and printing industries pay higher hourly rates. Although high wages should enable the mineral industries to compete effectively for the state's labor force, these same high wages make it imperative that their competitive position be maintained through greater labor efficiency. A study of the mineral industries' future labor requirements, based on opinions of the state's mineral producers, shows that only a small increased need is expected. Advances in automation and mechaniza- tion account for part of the small increase anticipated, but in the granite industry the producers', expectation of a stable market for monu- ments is of major importance. Although most of Vermont's mineral indus- tries expect only a small increase in their labor requirements, efforts at maintaining and upgrading the skill level of the state's workers must continue. This is necessary because all of the major mineral industries have a large portion of their personnel classified as skilled. Mechanization and automation will not likely replace to any degree the highly skilled worker; therefore, their numbers must be maintained. By their own admission the mineral producers have many positions that are described as hard to fill; yet, only the granite industry maintains an organized apprenticeship program. In spite of the Vermont Apprenticeship Council's efforts, none of the other mineral industries maintain training programs. This situation indicates a lack of foresight among Vermont's mineral producers. If effective plans for mechanization in the mineral industries are to be implemented, producers must place an increased emphasis on training mechanics and electronics technicians and retraining 133 present workers to handle jobs created by these technological changes. Labor turnover rates are to some extent indicators of general worker satisfaction and the efficiency of personnel management. Here, Vermont's mineral industries compare well to the national average, both in total turnover rates and in quit rates. It is possible, however, that these low rates reflect a lack of alternative opportunity. Adequate records of any kind--such as accidents and absenteeism--are too seldom maintained. If properly kept and used, these aids to good personnel management could add to many producers' efficiency. The granite, marble, and slate industries are the most highly 'unionized mineral industries, but little unionization exists in several perty assessment. One writer, Granville S. Borden, in an article, "1?éaxation of Mineral Properties," contained in a symposium publication, Egggemiee e: the Mipegal Induseri es, points out that mineral mining :irudustries are hampered in their development because they are subject t4) assessment discrimination through a lack of standard appraisal criteria 31nd a lack of assessors and tax commissioners trained in the assessment cxf mineral mining properties.14 Former municipal tax consultant for Vermont, Laurence W. Gauthier, claims that not one lister in Vermont is Ihflly qualified to assess mine and quarry property. One town recently hand to obtain the services of a Massachusetts appraiser when the appraised value of a quarry was appealed by a taxpayer.15 The extent of inequities occurring in Vermont's mineral mining and manufacturing property assessments is difficult to determine, but it rues been severe enough among granite producers that, during the past Brenar, a special Tax Study Committee composed of Barre Granite Association IMembers, at the invitation of the city's listers, studied the entire Sqrstem and structure of assessment for their industry in the Barre region. JLfter completing their study, the Committeetmet with the town's listers to discuss their findings and to make recommendations for more equitable 16 & ssessments . 1“limited by Edward H. Robie (New York: American Institute of Llining, Metallurgical and Petroleum Engineers, 1959), p. 482. 15Letter, Dept. of Taxes, Montpelier, Vt., July 2. 1964. 16Barre Granite Assoc., Inc., "Annual Report, 1963-1964" Barre, Vermont, [19613 , p. 2. (Mimeographed.) And interviews with Hugo C. Giudici, 1“Member of the Tax Assessment Study Committee, Barre, Vt., July 20, 1964; Craig 0. White, Mgr., Member Services, Barre Granite Assoc., Barre, Vt., Dec. 18, 1964. “,5: P r‘j III. AA 1.. 14 155 The Tax Study Committee discovered gross inequities in assess- ments and also determined that both land and plant assessments were in many instances too high; Table 33 illustrates sample cases of assessment TABLE 33.--Comparative granite firm appraisals based upon 1963 actual and 1964 recommended plant and land appraisalsa _______________r.____________________________ Recommended Recommended Plant Plant Land Land Plant Appraisal Appraisal Land Appraisal Appraisal Area 1963 1964 Area 1963 1964 Firms Sq. Ft. (in dollars) (in dollars) Sq. Ft. (in dollars) (in dollars) A 18, 900 45, 570 40, 020 71, 297 9,780 8, 230 B 18. 233 49.750 29. 822 238. 596 19. 680 11. 335 6 17.942 73.100 38,147 ‘ 170,000 16,890 9,858 D 31.224 72.550 57.884 71.800 27.390 8.277 aSource: Data obtained during personal interview with Craig C. White, Mgr., Member Services, Barre Granite Assoc., Barre, Vt., Dec. 18, 1964. Names of individual firms withheld. inequities. Firms A and B with nearly the same plant area were in 1963 giVen comparable assessmelts. The Committee found that although the two firms' plant areas were similar, the capital equipment and buildings of Firm B were not nearly as valuable as those of Firm A. Where Firm B's original assessment was over $4,000 more than A's, the Committee's recom- mended plant appraisal for 1964 was over $10,000 less than that recommended for Plant A. This example shows a total assessment difference of $14,278 between the actual 1963 and the recommended 1964 assessments. Firms 0 and D also illustrate the problem of unequal plant assessments. Firms A and D illustrate especially well the inequities found in land assessments. Both have approximately the same land area, but Firm D has an appraised Value nearly three times greater than Firm A. The advantages of loca- tion and utility of the land owned by the two firms do not differ appre- t=3Lably, and the Tax Study Committee's recommended land assessments reflect 156 this similarity. In recent years granite producers have made a large number of assessment appeals to the washington County Board of Tax Appeals. The large number of appeals helped to bring about the listers' request for the study of assessments in the granite industry. The findings of the Tax Study Committee represent recommendations, and the listers' 1964 assessments have not followed precisely these recommendations in all cases. But according to Mr. Craig C. White, Manager of Member Services of the Barre Granite Association, they are not too far from those supported by the Tax Study Committee. The Barre Granite Association, to lend support to the present effbrts of the listers, early in 1964 requested its members not to appeal their appraisal this year.17 An only appeal was ruled against by the County Board of Tax Appeals on the basis of a 1962 United States' Supreme Court decision that set forth the position that assessments are just if all property owners are treated alike even though their assessments are not related to fair market value.18 The use of the term fair market value in this instance raises a perplexing issue. According to Mr. Craig 0. White of the BOA, one of the greatest difficulties of the Tax Study Committee was in establishing what the fair market value was of granite firms and establishments in the Barre granite . 1 region. l7Interview, Barre, Vt., Dec. 18, 1964. 18W. December 17. 1964. p- 6. A note of interest here may be in order: The author in December, 1963, had the good fortune to be interviewing an official of this firm at the time that the listers came to make an appraisal of their plant. 19Interview with c. c. White. Tv‘cw $quA l ,. .J-g»: nw‘t . ‘ :I'h";“ V. .&V " H a 1.5110” s ‘ . ‘ 1.3533, 5.105. fit...“ :01, mlziv A 1,‘ $2: the pr m‘o Jr ‘. nag»:- ] vuu. "‘PFA. r‘ ...._‘.a ~‘VUHN‘. v ‘ ‘ 3 ““ ‘."wn '{liE V if; it“: .5 ' ‘. ”‘5 w?“ I'. ‘A l:. ... Eat a .. d .- \ fl. \ . \4,E:\Q E 157 Interviews with listers indicate that there are few, if any, standard criteria for appraising quarrying and manufacturing properties in Vermont's slate region. Such a condition could even in the relatively small area encompassed in the slate region, which includes several dif- ferent towns, lead to financial inequities among the various slate pro- ducers, such as have occurred in the Barre granite region. According to listers for the Town of Fair Haven, they make every attempt at leniency for slate producers. Both listers, separately interviewed, maintained that in the Town of Poultney the listers are very hard on the slate pro- ducers.20 Further research is needed to determine the importance of assessment inequities in the slate industry. t a ' ud An effort at standardizing assessments on Vermont properties has been made during the past year. According to a report released by the state tax office, their personnel during 1963 conducted a six-month tax equalization study for the purpose of setting more uniform assessment ratios on all properties in Vermont. Monies available for the study were limited; therefore, the findings were rather general in scope. The equalization study, by sampling assessed ratios and com- paring these to authenticated sales prices for properties sold, deter- mined that large variations occur in the assessment ratios used in the same town. It also found that the assessment ratio used often failed to reflect actual fair market values. In short, they found that many listers are not obeying Vermont laws that direct listers to tax real 20Interviews with E. Olive Pelkey, Lister, Town of Fair Haven, Fair Haven, Vt., June 23, 1964; and Lawrence M. welchko, Lister, Town of Fair Haven, Fair Haven, Vt., June 25, 1964. 0'- u.- LF 158 and personal property at fair market value and then list the appraised value in the town's grand list book (tax roster) at a locally agreed upon ratio of the fair market value.21 On the basis of the discrepancies discovered in the various towns' assessment listings and actual fair market values, the Department of Taxes recommended ratio adjustments for a given town's various kinds of property; Unfortunately the lack of funds prevented any serious checking for tax assessment inequities or assessment problems specifi- cally involving the state's mineral industries.22 Because its findings are not binding and because of its recent completion, the study's effect on the assessment of mineral mining and manufacturing properties cannot be determined for several years. Summary and Conclusions Vermont's tax structure has both favorable and unfavorable characteristics. Property taxes in Vermont's mineral regions are, on the average, higher than those in most competing regions in other states. Vermont's corporate income tax is not overly high compared with many states, but some states such as Maine, Michigan, South Dakota, and Texas do not have a corporate income tax. State personal income tax rates in Vermont are so high that they place the state near the top nationally. Vermont's attractions as a possible area for the location of 21Vermont Dept. of Taxes, leee_eit. 22‘Letter from Laurence W. Gauthier, Chief of Property Taxes, Vermont Department of Taxes, Montpelier, Vt., Dec. 2, 1964. This view is his own personal opinion and does not reflect in any way the Department of Taxes or the state of Vermont. 159 new or additional mineral enterprises cannot be equated on the basis of taxes alone. Many scholars who have considered the importance of taxes to industrialists making decisions about plant locations have found them to be of only minor significance. Individual taxes vary in their bearing upon locational decisions. Opinions of those who work with the problems of industrial location indicate that local property taxes are more important to businessmen than are corporate and personal income taxes. According to Kimmel, however, industrialists are often concerned whether or not federal in- come taxes are deductible from the state corporate income tax. Kimmel also claims that the total tax burden is usually more important than any single tax. Associated with property taxes in Vermont is the important pro- blem of possible widespread assessment inequities among competing min- eral producers. Inequities are evident in the Barre granite region, but the town's listers and the Barre Granite Association's Tax Study Committee have made efforts toward reducing these. Interviews with listers indi- cate that a similar problem may be present in the Poultney-Fair Haven slate region. A statewide equalization study, conducted by the Vermont Tax Department in 1963, found abuse in the application of assessment ratios and taxes as they are applied to fair market values, and the Tax Depart- ment made recommendations for equalized assessment ratios in the state's various towns and for their different types of property. The study's effects cannot be immediately evaluated because of its recent completion and because its recommendations are not binding. Considering the findings of the Tax Study Committee of the Barre "J 'l 160 Granite Association, the Vermont Tax Department's equalization study, and the author's personal interviews with listers, a more detailed investigation beyond the scope of this study is needed to determine the relevance of assessment discriminations in the economic problems of Vermont's mineral industries. c‘ug'vs A-‘- u‘ - . .... ... . I'vci' F . ‘4‘.“ f":. , hurt a ‘I ““k. e n.:" fl “In-a,“ :‘A-‘C 1.," "a. u..:_ “w; "'9. ,E CHAPTER X FUEL AND ELECTRIC ENERGY CONSUMPTION AND COSTS Nearly all modern industrial establishments utilize fuels and electric energy for lighting, heating, or operating power-driven machin- ery. Fuel and electric energy costs, therefore, usually constitute a Steady and important item of overhead expense; but, because of varying fuel and electric energy needs, not all industries are burdened by power costs to the same degree. Some industries, because of special requirements of their production processes, may have higher power costs than do others. Different areas of the United States have considerable differ- ences in their fuel and electric energy costs. Cheaper costs for coal, fuel oil, electric energy or other power sources in one locale can give industries in that region somewhat of a competitive advantage over their counterparts in other areas of the United States. Relative Power Needs According to Seymour Harris, economics professor at the University Of California at La Jolla, the stone, clay, and glass industries, as a Whole, have relatively high power costs when compared with some of the other major industrial groups. Harris illustrates the relative power costs of certain industries such as textiles and chemicals by finding 161 ’ ..- u.- a I,“ cv‘ ~- ; - V‘i‘ '4- -,-. H V - r I. . ll '1‘ i pl 162 what percentage their power costs are of their value added.1 A similar analysis done for this study based upon data available from the 1958 and 1963 We and the 1958 W resulted in findings similar tothose of Harris. Data calculated for this study show that nationally in 1958 textile industries had a total fuel and electric energy cost of 4.1 percent of their value added, chemical industries had a total cost of 6.4 percent, and stone, clay, and glass manufacturing industries had a total fuel and electric energy cost of 8.5 percent of their value added (Table 34). Vermont's mineral TABLE 34.--Fuel and electric energy costs as a percentage of value added for selected manufacturing industries on a national basis in 1958 ____________________1._____________ Purchased Total Cost of Fuel and Electric Purchased Fuels agd Energy Costs Value Added8 Electric Emery as a Percentage Industry (millions) (thousands) of Value Added STONE, CLAY, AND GLASS $ 5,528 $468,974 8.5 Chemicals 12, 270 788, 152 6 .4 Textiles 4, 857 201, 175 4.1 Food and Kindred Products 17 , 532 518, 207 2. 9 Leather and ieather Products 1,897 28,594 1. 5 aU.S.. Bureau of the Census. W bU.S., Bureau of the Census, u 1" .. m - arr; A. 9 '1 3m! aJi‘e included in this volume). .1 Mae . .--.93. 4°. ‘ : Fu 'o, (1958 data industries, including both mining and manufacturing establishments, had 1T - (Cambridge : Haarvrd Univ ersit SQ ..." if ;~~ u ,. «u a . -r I ‘..Iv ‘ '1 no! 5‘ [1‘ . no n V. ”he‘d . . .J' v-~ nu . ‘R 'zrt', do ‘ - x-‘ln. ."':: g :" ~:‘.- I. ‘1': 163 a total fuel and electric energy cost in 1958 of 5.4 percent of their value added. 2 Fuel and electric energy costs incurred by stone, clay, and glass manufacturing industries nationally and also by the mineral indus- tries in Vermont indicate that power purchases constitute an important part of overhead in these industries. Therefore, the remainder of this chapter is devoted to a closer look at the kinds of power Vermont' mineral industries use and the cost of this power to them. Purchases and Costs of Fuels and Electric Energy The latest available power consumption data for Vermont's min- eral mining establishments is 1958. During 1958 mineral mining estab- lishments purchased a total $841,000 of fuel and electric energy. These establishments spent $400,000 for 30 million kilowatt—hours of electric energy, $21,000 for 5,000 barrels of fuel oil, and $25,000 for 2,000 short tons of coal. The remainder cannot be accounted for except as it is classified by the Census of Mineral Industries as "other or undis- tributed fuels."3 More up-to-date figures are available for Vermont's mineral manu- facturing establishments. In 1962 they purchased a total of $1,283,000 of filel and electric energy. Of the $1,283,000 total, electric energy purchases accounted for $740,000 (35 million kilowatt-hours). 2v. 3.. Bureau of the Census. WW 1258 , Vnegme nt Agee Repert, pp. 42-4, 42-5; and Vol. I: n: S' t ’ Wed pp- 6- 12 6-13 3U.S., Bureau of the Census, u,§, Qen neu e ef Minenal IndueEQi lee: 1258. Vol. I: Washed pp. 6-12. The Census does not make clear what undistributed fuels means, 5-13. but it is likely a reference to their inability to place the fuel pur- chased in a particular category. Total ‘ o 71"” ‘5..-v-- ..Lo-A - ... dr' '1 - ‘- QOI . Fon- -o ‘\v‘ . d‘ C U a .1, ,- t“ -‘>. no \A- a: "n ... o. N. 59* "Ne. L3 5, u I 164 fu 1 purchases were $543,000 of which gasoline and wood accounted for $122,000 and $376,000 went to buy 85,000 barrels of fuel oil. The remainder is not classified.” The above figures show that a large portion of the power used sued paid for by Vermont's mineral producers is for electric energy, 1mith.mineral fuels being of lesser importance as power sources. In 11958 electric energy purchases accounted for nearly 48 percent of Ver- mont's mining establishments' total cost for purchased power; in 1962 electric energy purchases made up approximately 58 percent of Vermont's xnineral manufacturing establishments' total cost for purchased power. m The relative lack of mineral fuel resources in New England in general and in Vermont specifically and the high cost of getting fuels to Vermont may account in part for their relatively small use in the State. All mineral fuels used in Vermont must first be transported considerable distances. Transportation costs help to make the price of mineral fuels high. Comparisons for Vermont and other states with competing mineral regions show, for example, that in 1962 Vermont stone, clay, and glass manufacturing industries paid $4.42 for each barrel of fuel oil purchased; producers in the same industrial group in Pennsyl- vania paid $3.57, in Michigan they paid $3.74, and in Georgia they paid only $2.85 (Table 35). Other than oil, few adequate cost comparisons can be made for mineral fuels used in Vermont and in other states. Their small use in Vermont probably accounts for the paucity of data on their “U. 8., Bureau of the Census, e s f Fue s .41dEEEQLILQ Epergy geneumed in Mepufaeeezing Ind 35 tziee, 196 2, pp. 48-49. 165 TABLE 35.--Comparative costs of fuel oil for stone, clay, and glass manufacturing industries in Vermont and selected other states fo;_1962a Cost Per Barrel State (dollars) VERMONT................ 4.42 Michigan. . . . . . . . . . . . . . . . 3.74 Georgia . . . . . . . . . . . . . . . . 2.85 Pennsylvania. . . . . . . . . . . . . 3.57 North Carolina. . . . . . . . . . . . . 4.60 New York. . . . . . . . . . . . . . . . 3.18 Minnesota . . . . . . . . . . . . . . . 4.42 California. . . . . . . . . . . . . . . 3.06 Indiana . . . . . . . . . . . . . . . . 4.33 3Calculated from data contained in: U.S., Bureau of the Census, U,§, Ceneue of Megufeeturee: 1 6 . els d 1 er on um d i Ma u- fecturing Induetriee, 196;. consumption in the state. One study, however, has compared fuel costs in various states and does give data for the cost of coal in Vermont and crther states. Among the various states containing mineral regions that compete with Vermont's, only Maine has a higher cost for coal than does Vermont (Table 36). Although most mineral fuels are not used in large amounts at the Present time and their costs are relatively high, there is some room for Speculation about the future use of one mineral fuel in Vermont. During the past year exploration for natural gas has been underway in the northern portion of Lake Champlain, especially in the vicinity of Grand Isle County. The presence of natural gas there has been known for some time, but the question is if it exists in enough quantity to make it commercially exploitable.5 If natural gas should be discovered in 5Rutlang Deily Herelg, March 24, 1964, p. 4. 166 commercial quantities, it could prove helpful in lowering fuel costs in the state. TABLE 36.--Comparative fuel costs per million British Thermal Units for selected states as of 19633 (in cents) Type of Fuel State Coal Gas 'VERMONT 40.0 NU California NU 35.2 Georgia 28.7 25.4 Maine 41.1 NU Massachusetts 35.8 36.3 Michigan 30.8 35.1 Minnesota 29.9 24.4 Missouri 22.4 22.0 New York 34.8 41.0 North Carolina 26.9 NA Pennsylvania 25.4 32.2 South Dakota 30.0 26.0 Tennessee 19.1 NA Texas NU 17.8 Wisconsin 31.6 28.3 aCompiled from data contained in: "Rough and Tumble of Site Location.” Wm Industry. LXXXI (March. 1963). S99. NU--fuel not used or only in inconsequential amounts; NA--not available. Warmers Writers in the past have claimed that electric rates are higher in the New England states than they are in most other areas of the United States. An analysis of data contained in the publication Typieel Ileet;1e_flille, released by the Federal Power Commission for 1963, shows this condition remains true for New England as a whole but not true for vermont. Vermont's position, based upon a hypothetical demand billing and power usage, compared with the other New England states and the entire United States is favorable. It has an average rate of .3 of a cent 167 less per kilowatt-hour (kwh) than that for New England and .l of a cent less than the national average (Table 37). Professor Seymour Harris TABLE 37.--Average electric energy rates of Vermont compared with New England States and the United Statesa Electric Rateb States (rates in cents per kwh) New England . VERMONT . . Connecticut Maine . . . Massachusetts New Hampshire Rhode Island. All other States aCalculated from data contained in: U.S., Federal Power Cimmission, i a1 e ic Bi 1 6 (washington: U.S. Government Printing Office, 1963). bBased upon a demand billing of 75 kw and a 30,000 kwh usage. cExcludes Alaska and Hawaii. O O 0 O O O O 0 except Vermont) 00000000 0 . C O C O O I O O C C O O O O O C O O O O O O O r‘F'F‘F‘FJF‘P'F' O\aMfi\O(D\O\n(D Z contends that high electric energy rates in New England are due primarily to antiquated plant facilities and the distance from fuel supplies of oil and coal.6 At least one Vermont power company is, however, now little dependent on mineral fuel supplies. According to Mr. Robert E. Schill of the Central Vermont Public Service Corporation, their firm, one of the largest in Vermont, in 1963 purchased 69.5 percent of its current from St. Lawrence and Niagara power sources. They generated 20 percent of their current by company-owned water power facilities and only .5 per- cent was generated with fuels! Mr. Schill also indicated that they are now involved in atomic power projects, and, as a result, Vermont should 6Harris, pp, eit,, pp. 225-39. 168 in the future experience a decline in power costs.7 Although Vermont's power costs are favorable compared with New England and the United States as a whole, what is more important is how the state and its mineral regions compare with other states containing competing mineral regions. Of states with.major competing mineral re- gions only Tennessee, North Carolina, and California have rates below 'Vermont's (Table 38). Michigan, Minnesota, and Wisconsin are well above TABLE 38.--Average electric energy rates of Ver- mont compared with selected states with competing areas of mineral productiona Electric Rateb States (in cents per kwh) VERMONT . . . . . . . . . Tennessee . . . North Carolina. California. . Georgia . . . Pennsylvania. Tees. .. Indiana . New York. Michigan. Minnesota Misconsin I O O O O O O O O O O O O O O . O O O I O O O O C O O I O O O O O O O I O ADAJAJF‘F‘f‘t'f'F’F‘F'k' h4h4c3~o~ocmChChrrpacptn O C O O O O O O O O O O C O O O O O O O O D O O O C O O O O O O O O O O O O O O O O O O O O C O O O O O O O O O D O O 0 O C O O O O aCalculated from data contained in: U.S., Federal Power Commission, INEi£§l_El§£LIiQ_BLll§i 1963 (Washington: U.S. Government Printing Office, 1963). bBased upon a demand billing of 75 kw and a 30,000 kwh usage. Vermont's power rate. But most specific areas in other states that contain 7Letter from Robert E. Schill, Vice Pres. and Asst. to the Pres. of the Central Vermont Public Service Corp., Rutland, Vt., March 26, 1964. The source for the other 10 percent of their current was not mentioned, but calculations based upon figures contained in the Corporation's 1963 Apnual Repert show that an error of 10 percent was made in the figure given for purchased power. 169 competing mineral regions are at an advantage over Vermont. Vermont's talc, marble, and slate regions pay a higher energy rate than do com- jpeting regions in other states. Only the state's granite region is favored over all competing regions (Table 39). Yet, it would seem that TTABLE 39.--Average electric energy rates paid by Vermont's mineral pro- ducing regions compared with major competing regions in other statesa Type of Electric Rateb Mineral State and Competing Regions (rates in cents per kwh) Slate VERMONT: Fair Haven-Poultney 1.6 Georgia: Polk, Gordon, Chatsworth, and Murray Counties 1.3 Pennsylvania: Pen Argyl 1.3 Maine: Monson 1.2 Granite VERMONT: Barre-Montpelier 1.6 Georgia: Elberton 1 . 7 South Dakota: Milbank or Big Stone 2.0 hfisconsin: Redgranite, wausau 2.1 Minnesota: St. Cloud-Cold Spring 2.4 __g Massachusetts: Quingy, 2.7 Talc VERMONT: Chester-Reading, Johnson 1.6 New York: Gouverneur .5 Georgia: Chatsworth lg3 Marble VERMONT: Proctor Vermont Marble Co. owns all of own power. Sells at 2.0. 'West Rutland 1.6 Tennessee: Knoxville .7 Missouri: Carthage 1.2 __g Georgia: Tate 1.3 Limestone VERMONT: Winooski, Swanton 1.6 New York: Glens Falls .5 Ohio: Findlay 1.5 Michigan: Calcite—Rogers City 3.0 aCalculated from data contained in: U. 3., Federal Power Commis- sion, Neti ope; Eleetgie Mie 5995, 126 3 (for each state) (washington: U. S. Government Printing Office, 1963). bBased upon a 30,000 kwh usage. electric energy costs are not overly high for Vermont's mineral producers, because of the 42 respondents to the general questionnaire used in this i 170 study, 25 said that electric energy~rates are not a burdensome overhead expense. Summary and Conclusions If power costs are calculated as a percentage of value added, stone, clay, and glass manufacturing industries for the entire United States have higher fuel and electric energy costs than do many other major industrial groups. Vermont's mineral industries also follow the national pattern. A major portion of the power consumption and costs of Vermont's mineral industries is based in electric energy. Mineral fuels are of lesser importance in the total energy usage and costs. Fuel oil and coal cost more in Vermont than they do in many other states with competing mineral regions. Comparisons of electric energy rates for Vermont, other states, and the United States as a whole show Vermont's costs are not high. Yet, most of the state's major mineral regions--including marble, slate, talc, and limestone--pay rates Slightly higher than those paid in many competing regions. Vermont's granite region is the only mineral region with any appreciable energy rate advantage. Although Vermont mineral regions' electric energy rates are higher than those of many competing regions, they are not so high that the costs incurred in power usage should hamper, to any degree, the competitive position of these industries. What the future prospects are for fuel and energy costs in Vermont is difficult to predict. The development of atomic power pro- Jects and the possibility of natural gas becoming more immediately avail- able could be important in bringing about a reduction in electric energy 171 and fuel costs. If the debated Champlain waterway were constructed, larger volumes of coal and fuel oil at cheaper rates might become avail- able. ‘Whether any of these possibilities will become reality and what the actual effects, if any, these possibilities would have on power (nasts in Vermont can only be speculative at the present time. CHAPTER XI RAW MATERIAL AVAILABILITY AND PROBLEMS OF EXTRACTION AND MANUFACTURE Vermont's mineral industries have varied and difficult problems associated with acquiring and extracting raw materials and in processing these raw materials into finished products. Although the problems of 'Vermont's mineral industries are not unique to them, they are in some instances more pronounced than those faced by competing industries in other states. To maintain an adequate production output and to plan effec- ‘tively for the future, producers in Vermont's mineral industries need 21 raw material supply that is constant in quantity and quality. To cir- tzumvent any disruption in raw material supply, some of Vermont's mineral maining firms pursue extensive exploration programs, but others have been £310w to see the benefits of long-range planning of this type. Producers face difficulties in extracting stone materials that Eire very hard, heavy, and cumbersome; and they must by slow and expen- Esive processing methods convert the quarried materials into unique and ‘Iaried items. Lack of capital (discussed in Chapter VIII), lack of =3pace, and antiquated plant facilities add to the burden of instituting 1Ip-to-date machinery and production techniques. The problems of waste E1nd severe climatic conditions add to the difficulties of Vermont's min- EEral producers. Silicosis is still a problem among workers in the state's 172 4 3 ‘ in o. ‘m‘ t. 173 granite industry. Raw Material Availability The raw-material supply in mineral industries is one of the most precarious production variables. Economic solvency of small establish- ments may well depend upon a steady rawhmaterial supply. As was men- tioned earlier, the history of failures in mineral industries is empha- sized by depletion of ores or stone material--such as occurred in Ver- mont's iron, copper, and gold enterprises. Only recently depletion's effects were experienced by a large mineral producer in Vermont. What are the prospects of depletion for present industries? Are there ade- quate supplies of stone and other materials at hand to assure a con- tinued production in those industries now active? Unfortunately, too Ilittle information is available that shows the volume and the quality <>f the state's different mineral materials. Marble producers have problems of raw-material supply. The \fermont Marble Company recently felt the impact of raw material deple- 'tion at one of its pigment producing establishments located at Florence, llermont. Until recently the pigments made at the establishment were IDrocessed from stone quarried just adjacent to the site of the milling and flotation plant.1 The stone's white color gradually became too Iimpure to meet the requirements of paint and paper producers. Rather ‘than close the plant, they now haul the raw stone from a quarry in 1This plant is a beneficiating establishment (one which processes :raw materials by means of crushing, washing, and flotation). The stone Zis crushed and then mixed with fluid chemicals in such a way that the (desired pigment materials are captured in a froth through flotation Ibrocesses. 174 South wallingford, a distance of 23 miles.2 Such transportation costs could be burdensome to absorb even for a firm the size of the Vermont Marble Company. On the other hand, because little waste occurs in processing, nearly all of the raw material received by the establishment is marketed. One of the most persistent problems of the several small manu- facturers of finished marble pieces is their lack of available raw xnaterial. Every producer interviewed said that he could sell more Inarble commodities if only he had stone to process. The small manu- .facturer of marble products is completely dependent upon a stone supply available only from two large quarriers--the Vermont Marble Company at ‘Proctor and the Green Mountain Marble Company of Tate, Georgia. The llarger part of the small manufacturers' supply comes from the Vermont Iiarble Company. The lack of land containing marble deposits and the Slack of funds keep the small manufacturer from developing his own quar- Iries. When questioned about the possibility of small manufacturing es- ‘tablishment operators making a united effort toward opening a quarry, teach producer indicated either that he would not be interested in such ‘a-project or that it just wouldn't work.3 Since only two large firms control the entire raw-material vSupply'and do much of the processing, the question should be asked: Why <30 they supply these small competitors at all? Professor Joseph D. Phillips 2Interview and field observations with H. S. Humphreys, Plant 53upt., White Pigment Corp., Florence, Vt., Oct. la, 1963. 3Interviews with Thomas J. McGann, Owner, White Marble Shop, TV. Rutland, Vt., Oct. h, 1963; John Wéinreiver, Partner, Bowker & Son, ‘1. Rutland, Vt., Dec. 2, 1963; wayne McQuate, Asst. Mgr., Splitface Marble (Iorp., Center Rutland, Dec. 13, 1963; Stanley J. Gawet, Co-owner, ‘3. P. Gawet & Sons, Center Rutland, Vt., Sept. 30, 1963. 175 in his book Little Business in the.American Economy expresses the view that it is often an advantage for a few large firms to tolerate the presence of many small firms since these firms do not affect pricing mulch and they can claim that the industry is competitive.)+ Whether this is the attitude of Vermont's two large marble producers is difficult to determine; but that real competition exists in quarrying or manu- facturing is not likely. As stated before, Vermont Marble and Green Mountain Marble are the only producers who have quarries or the financial resources to de- ‘velop new quarry sites. Both firms are now opening new quarries. Ac- cording to the second largest producer in the marble region, the Green IMountain Marble Company, the major deposits of good stone are controlled ‘by the Vermont Marble Company. Nevertheless, the Green Mountain Marble Company has been doing extensive core drilling5 for several years on ‘what land they do own. One recent quarry project upon which the firm Ihad placed much hope failed miserably and proved very costly because initial testing of the marble beds was not thorough enough. They are ‘Fuesently opening a new mine-quarry site in the village of West Rutland rmnr their finishing plant. Their West Rutland mine-quarry now used will Em depleted within a few’years.6 Extensive core drilling carried on by ‘this same firm near the village of South Dorset has proved a large ‘volume of marble reserves. An opening is presently being made for a “(Urbana, Illinois: The University of Illinois Press, 1958), pp o “'1, 63‘6“. 5A drilling technique by which cylinders or cores of rock can ‘be brought to the surface. 6ngmgnt Era, November 21, 1963, p. 6. nu ~¢ n. n.' 176 projected marble mine-quarry. When questioned about why they are plan- ning to open this new site as an underground operation, a method usually :much more expensive, the management said that the desired beds are very deep and the terrain is such that open quarry operations would be even Imare difficult than those expected underground.7 From field observations and discussions with quarriers it does not seem likely that substantially easier or cheaper methods of marble extraction will become available in the near future. Because the two large producers own most property containing marble deposits and because quarrying is so expensive, small jproducers will be forced to continue dependent on materials the two large producers can either spare or desire to sell under what could easily be considered a duopolistic condition. This presents pricing and other problems that deserve further study. Producers in other mineral industries are also faced with the difficulty of raw material availability; Most of the larger firms with Inines or quarries are now using core drilling to determine the types and the amounts of reserves they have available for future use, but this jpractice was not always followed. The Vermont Talc Company exemplifies a firm that suffered heavy and possibly unnecessary costs because it failed to use core drilling. The company needed a new talc supply and a search for new deposits was undertaken on land owned by the company. Upon discovering several prom- ising outcroppings, workers opened a new mine without obtaining test cores. The lens of talc soon pinched out and they abandoned this shaft. 7Field observation and interview with Clement J. Perfetti, Gen. Supt., Green Mountain Marble Co., at their South Dorset quarry, South Dorset, Vt., Sept. 23, 1963. 177 They then selected another likely site determined from a few shallow test drills. Not long after this new shaft was opened, the miners en- countered an area of severe fracturing that forced its abandonment; it was too unsafe. Finally, after the expenditure of several thousands of dollars and the passage of several months, the owner sought the assistance of a firm specializing in core drilling. Extensive drilling determined the location of the best talc deposits and also the most favorable posi- tion for the new shaft. The long desired mine is now'producing.8 Representatives of Vermont's other talc firm, the Eastern Magnesia Talc Company, contend that at the present rate of production their Reading mine site has at least a 20-year supply of talc. Presently, they are not attempting to find new reserves.9 Perhaps the most extensive exploration activity in Vermont's mineral industries is carried on at the Ruberoid Company's asbestos es- tablishment north of Eden Mills. The firm employs a full-time geologist who directs a staff of several men who work round—the-clock core drill- ing. During the past few years they have obtained mineral rights to property on a line between Eden Mills and the Canadian border, and have pursued a program of core drilling for asbestos deposits. According to Mr. Louis Jordan, their geologist, they have so far found no encouraging deposits. From continuous core drilling on 3,000 acres of company-owned land adjacent to the present quarry site, however, the company has 8Field observation and interviews with.Mr. Theron A. Yager, Pres., Vermont Talc Co., at his mine site three miles south of Simonsville, Sept. 27, 1963, and at Castleton, Vt., June 8, 1964. 9Interview and field observation with W. A. Dezaine, Supt., Eastern Magnesia Talc Co., Hammondsville, Vt., Oct. 25, 1963. 178 determined large reserves. In fact, the core drillers have proved enough reserves that the firm has, during the past year, actually slowed down the pace of test drilling. Mr. Jordan would not divulge the extent of the reserves, nor would he say how long they were expected to last. He did say, however, that there are adequate raw materials available for "the foreseeable future."10 The Vermont Kaolin Corporation near Bristol, Vermont, serves as another example of a mineral establishment's successfully using core drilling. Drillers have discovered enough kaolin to give their milling establishment an adequate supply for many years. The proved reserves are well over 6,000,000 tons, and probable reserves are likely more than twice this figure. Mr. Allen C. Moore, Treasurer of the firm, would not divulge the actual figure, but he implied that it was much greater than the 6,000,000 tons discussed.ll Slate producers do not have a core-drilling program at the present time although the region's largest producer has used it in the past for short periods to determine the best sites for new quarries. Others have never attempted its use. One of the reasons given for not using core drilling in the slate industry is that the beds of stone may have knots and other defects only a few inches away from where the core samples are taken. Some knowledge, though, would be better than none because slate beds are too unreliable in their quality and location to 10Field observation and interview with Louis Jordan, Geologist for the Ruberoid Co., at their quarry sites and core drilling operations three miles north of Eden Mills, Vt., Oct. 28, 1963. 11Interview and field observations with Allen C. Moore, Treas., Vermont Kaolin Corp., five miles north of Bristol, Vt., Sept. 18, 1963. 179 depend on mere chance and the experienced guess of the rock boss. If these producers are to avoid production delays and unnecessary expense, they must make greater use of the opportunities afforded through the technique of core drilling. Problems of Extraction and Manufacture If depletion and exploration problems are important, quarrying and processing problems are of major importance. Advances in mechani- zation have helped to speed up production, but the overall extracting and manufacturing processes remain slow. Some methods have changed little from those used during the last century. Inadequate plant space and antiquated facilities, however, make difficult the introduction of new methods and machinery. Accompanying the entire costly process of extraction and manufacturing is the problem of waste. One can observe the evidence of its importance in the many piles of accumulated stone and tailing debris near the quarrying and milling sites. A problem common to most of the state's mineral producers is the severity of climatic conditions. Ice accumulation and the costs of heating and of snow removal are the constant companions of the mineral producer who seeks to continue operations throughout the winter months. ua ' d In the granite quarries southeast of Barre on "Millstone Hill"-- a name coined from the millstones it has so long sent to the villages of New England and adjacent states--quarriers laboriously cut huge blocks from the floor or wall of the stone mass. Only a few decades ago each block was freed through slow processes of pneumatic drilling and plugging. Holes, drilled a few inches apart on each side of the prospective 180 block, were plugged in such a way that tremendous pressure was exerted against two or three free sides with the result that the block split away from the rock mass. Channelling later speeded up the operation; and although some channelling is still used on cuts in the quarry wall, quarriers now free most stone through the use of a jet burner that operates by forcing a mixture of burning kerosene and liquid oxygen through a nozzle. The jet burner cuts not by burning but by setting up thermal stresses in the granite which results in crumbling or flaking along the narrow zone of high temperature. With this device a day's work once requiring several men is now accomplished by one.12 At times, quarrymen reach good stone only through first ex~ tracting undesirable pieces. If the stone contains large quantities of pyrite or garnet, materials that tend to decompose and cause discolora- tion, it may have to be scrapped or used in commodities such as curbing, paving, or concrete. Once freed, heavy boom-derricks capable of lifting 100 tons hoist the stone from the quarry. workers must constantly maintain these derricks. Because their mobility is limited, several derricks must be used in a single large quarry (Fig. 18). Quarries in the Barre area are very large and deep because of their long use; their great depth (300-500 feet) helps to increase costs considerably. With the depth of the quarries and the heavy loads that must be lifted, it is not likely that any great modification in the use of boom-derricks will occur in the near future. According to Mr. Cyrus Y. Ferris, Chief 12Interview and field observations with William Roy, Gen. Mgr., Wells-Lamson Quarry Co., Websterville, Vt., Nov. 1, 1963. Letter from Cyrus Y. Ferris, Chief Engineer, Rock of Ages Corp., Barre, Vt., Dec. 2, 1964. 181 Fig. 18.-—Mu1tiple boom-derricks used in a Rock of Ages Corporation granite quarry in Graniteville. timer for t:' for the remove; cut the beltin marble industr mine-quarries; An excellent 5 immediately ur areas by a vet mately 130 f e-: south to reac‘r village where southwest. Tl 300 feet below In adz Precludes an Wm would Wine drilli] traction co st mmled into p0 is Shown in F tion, and thi 1m? 01‘ the 10 . mt; distanCE r. . $30931 of t; l \ 182 Engineer for the Rock of Ages Corporation, conveyor belts could be used for the removal of grout (waste) but the sharp edges of broken granite cut the belting so rapidly that replacement becomes very difficult.13 The problems of extraction are also well illustrated in the marble industry. Producers presently obtain all of their stone from mine-quarries; the costs incurred with this extraction method are high. An excellent example of underground quarrying is found in west Rutland immediately under much of the village! Quarrymen reach the working areas by a vertical-shaft entry (Fig. 19) that has a depth of approxi- mately 130 feet. From this point the shaft slopes downward toward the south to reach a depth of about 180 feet and a position underneath the village where several drifts radiate toward the east, southeast, and southwest. The drifts slope gradually downward reaching depths nearly 300 feet below the surface. In addition to location, the depth of the marble beds largely precludes an open-pit quarry because the expense of the overburden removal would be prohibitive. Inability to use overhead derricks when moving drilling equipment and channelbars in mine-quarries makes ex- traction costs high. Channelbars weigh three to five tons and must be moved into position by jacking and blocking. (An example of a channelbar is shown in Fig. 20.) The marble beds do not lie in a horizontal posi- tion, and this condition has made it difficult to maintain the regu- larity of the drift floors. Irregularity in the floor surfaces and the long distance from the drift working areas to the entry shaft make removal of the quarried marble blocks difficult and costly. Large 13Letter from c. Y. Ferris. 183 Fig. l9.--Vertical-shaft entry of marble mine- quarry at West Rutland. mine-q} 184 Fig. 20.--Channelbar being used in new marble mine-quarry at South Dorset. arts of muck and | feiris must be ham 23379ng with at; rental of muck an; :15 Test Rutland q: :eliing or other in: 25559 firm operatl :ractical becaus £591 in this work It .3307. Processing stats are also C05 leene Hill" a tiof Ages COTPO :ie of Barre only we once built in time the pieces i‘itwith the adven' "1,,3 “radar, 33",. n . “h ‘ a y, ~19 . 1'! v ‘=: t . 1 Ms tne Stone on 185 amounts of muck and rock fragments accumulate during quarrying. This debris must be hand shovelled several times before it can be hoisted aboveground with an overhead boom-derrick (Fig. 21). When asked if the removal of muck and other debris from the drifts to the entry shaft in the West Rutland quarry could be facilitated to some extent by using belting or other mechanical means, Mr. H. M. Kupferer, Vice President of the firm operating this establishment, stated that such.methods are impractical because working locations change constantly, and the manpower used in this work allows a utilization of inexperienced and inexpensive labor.lu Processing operations in the marble finishing mills and granite sheds are also costly and laborious. Most granite quarried in the "Millstone Hill" area moves by truck to Barre where it is finished. The Rock of Ages Corporation has a new and large shed (finishing plant) out- side of Barre only one mile from their main quarries. Granite sheds were once built in a circular pattern because the stationary derricks. to move the pieces of stone, had to be centrally located (Fig. 22),15 but with the advent of overhead cranes the sheds became long and rec- tangular. Moving stone in the sheds is difficult and slow. Almost with- out exception, any piece of stone moved must be lifted by an overhead crane. Marble producers are faced with the same problem (Fig. 23). The result is that men frequently cannot continue working until the crane lifts the stone on to its next processing station or shifts it into a lu’Letter, Green Mountain Marble 00., w. Rutland, Vt., Dec. 16, 1964. 15George H. Perkins, f th t t Ge ' M' r _ 0. ‘ '[.G']-=1...°. 0- _‘_ an A ‘-. fVermog--‘10-.°10 (Montpelier: Argus and Patriot Printing House, 1904), p. #0. l 186 Fig. 21.--Boom-derrick in operation at West Rutland marble mine-quarry. 187 Fig. 22.--Circular granite shed built to ac- commodate stationary derricks. 0‘ -I_-__ K Marble 188 Fig. 23.--0verhead crane at Green Mountain Marble Company's finishing mill in west Rutland. new writing 9051“: 1:5 Green Mountain ct; lifters move r" Sawing anc According to manag winds of making ‘ :tafford to pro:: several monuments .12: the wire saw; its production is 5‘35 33109 of produ: 3551331 in each uni detailed lettering AntiQUatec 1:45:31 indUStI‘ieE fitfibliShflents is eons Of EmJ'iqllate "5 25). The re ....sently make 1 t V l :98 . aslv vie :1 th aorasa v ‘°°k into 1;“ he . 17F immgpot‘ er c a J“ G ' O 0 £34- 1‘ 1t . L. h 1 C0 . 189 new working position. Considerable time is wasted in this fashion. In the Green Mountain Marble Company's mill electrically operated vacuum cup lifters move relatively light marble slabs. Sawing and finishing granite are slow and expensive processes. According to management at the Jones Brothers Company in Barre, without methods of making multiple cuts when manufacturing monuments they could not afford to produce them. They have developed a method of sawing several monuments simultaneously by carefully aligning the blocks so that the wire saws16 can follow a preconstructed pattern. Implementing mass production is especially difficult in the granite industry because the type of product, primarily monuments, necessitates uniqueness of design in each unit. Each monument must receive careful attention in detailed lettering or carving.l7 Antiquated plant structures are widespread in each of the state's mineral industries. The term "shed" applied to granite manufacturing establishments is in most cases appropriate (Fig. 24). Similar condi- tions of antiquated plant structures exist in the slate industry (Fig. 25). The restricted size and shape of many of these structures frequently make it difficult, and at times impossible, to introduce large 16These wire saws vary in size and length, but all function in the same way. An endless steel wire looped around two separate and grooved fly wheels is passed along the stone surface to be cut. Sawyers maintain a constant flow of water over the stone that carries along with it a steel-shot abrasive which works its way under the moving wire. The wire gauges the abrasive into the stone and gradually forms a groove that cuts the block into the desired shape. 17Field observations and interviews with David Pinkham, Plant Mgr., Jones Brothers Co., Inc., Barre, Vt., Nov. 1, 1963; Lorenzo Chiodi, Pres., Modern Granite Co., Barre, Vt., Dec. 19, 1963; Clement J. Perfetti, Gen. Supt., Green Mountain Marble Co., W. Rutland, Vt., Sept. 23, 1963. 190 Fig. 21+.--Antiquated granite shed in Barre. i 191 iatl'inem. For t}: emetic polisher mend $20,000 t host of Va in of waste.19 jase of extracti: Slate est chaste with its Pioneers in the ‘ 955‘» 0f the slate report, however, Trainers use exp n this practice an have been ma line. Quarriers Slate beds becaus Cliver Bowles, wr 5'9 justified at 3.3": waste a an?” Created I: ‘Sed for p 192 machinery. For example, one granite producer claimed that before a new automatic polisher and a conveyor belt could be installed, he was forced to spend $20,000 to increase his plant space.18 Essie Most of Vermont's mineral industries are plagued with the pro- blem of waste.19 It is a persistent and costly problem in nearly every phase of extracting and processing. Slate establishments illustrate particularly well the problem of waste with its consequent costs of removal and lost raw material. Producers in the Vermont slate region estimate that from 70 to 80 per- cent of the slate quarried fails to reach a market; a Bureau of Mines report, however, indicates a waste occurrence of up to 90 percent.20 Producers use explosives to break slate beds loose from the quarry face, and this practice results in much waste (Fig. 26). Attempts to use wire saws have been made, but no producer interviewed now utilizes this tech- nique. Quarriers say that the method is not practical in Vermont's slate beds because it fails to take advantage of natural seams. Oliver Bowles, writing for the Bureau of Mines, claims that explosives are justified at times but should be limited primarily to digging sumps, opening new benches, or making floor breaks.21 From all indications 18Interviewwith.ECLgo Zorzi, Supt., Adams Granite Co., Inc., Barre, Vt., July 2, 196A. l9W’aste as used in this paper refers to any stone debris or residue created during extraction and manufacture that cannot be economi- cally used for processing into a saleable product. 20Oliver Bowles, Slatg, U.S. Bureau of Mines Information Circular No. 7719 (washington: U.S. Government Printing Office, June, 1955), p. 10. 21Oliver Bowles, Ihg_1gghgglggy_gf_§lgte, U.S. Bureau of Mines Bul- letin 218 (washington: U.S. Government Printing Office, June, 1955), p. 85. 193 Fig. 26.--Blasting slate beds loose from the quarry face near North Poultney. these producers sylvania worker: duced by as muc‘r. Work in emulated slate iethod of waste teenth century- is hoisted out 0 the quarry's edg winds of debris frequently these facent to the q‘ netle back to aterials often ‘49:. may be ah Waste a Ferations. P‘ we milling s i' ain‘t?“ 194 these producers have not given the method enough consideration. Penn- sylvania workers use this method, and, reportedly, waste has been re- duced by as much as 50 percent.22 work in the quarries cannot be effectively carried on with ac- cumulated slate debris; therefore, it must be removed. The present method of waste removal is the same as that used during the late nine- teenth century. Wbrkers hand shovel the waste into an iron bucket that is hoisted out of the quarry on cables operated from a hoist house near the quarry's edge. As evidence of the large amount of waste, huge mounds of debris stand just outside the quarry openings (Fig. 27). Too frequently these waste piles are allowed to accumulate immediately ad- jacent to the quarry opening. A bulldozer must then regularly push the rubble back to keep it from sliding into the quarry. Also, these waste materials often lie over good beds of stone, and the expense of moving them may be almost as much as opening a new quarry. Waste also accumulates in large amounts during slate milling operations. Planer cuttings, ends, and other debris must be moved from the milling site. Numerous milling operations are slowed down because accumulated waste must be removed by hand. In fact, one establishment's system for removing waste from shingle-making requires two separate handlings before its final removal from the building. Management claims an awareness of this double handling of the waste material and its con- sequent costs, but they have not thought out any method to end the prac- tice. The method is still unchanged.23 22Bowles, Slat , log, cit. 23Interview and field observation with William Mahar, Gen. Supt., Vermont Structural Slate Co., Fair Haven, Vt., Sept. 18, 1962 and March 28, 196M. t g. 195 Fig. 27.--Slate debris beside quarry openings near North Poultney. Nearly 6' problem of waste was 101‘ its di: loses 95 percent talc producers m, were wet proces: tailings must be bee-me acute bece son he unavaila‘: ducers. The Eas sear Reading, he tation reservoi‘. has another pro P 101‘ Donution l o: “ate? Resou Q N.) latch . tI‘e v-.i""’rl€:s . ‘1'EY‘S \‘s are C \J 196 Nearly every kind of mineral establishment visited evidenced the problem of waste and the problem of finding a convenient and inexpensive means for its disposal. The asbestos establishment in northern Vermont loses 95 percent of all raw material quarried!21+ Because of impurities, talc producers must discard large portions of their raw material. Where wet processes are used in talc manufacture, a large volume of tailings must be drained off. The difficulty in removing tailings has become acute because of a state anti-pollution program. Rivers will soon be unavailable as waste disposal systems for Vermont's mineral pro- ducers. The Eastern Magnesia Talc Company, now building a new plant near Reading, has been forced to construct huge and expensive sedimen- tation reservoirs adjacent to the plant site.25 At Johnson this firm has another processing establishment that has always dumped its tailings into the Lamoille River which, within five years, is to be classified for pollution control.26 Preliminary studies by the Vermont Department of water Resources appear to indicate that the mill tailings create pollution by destroying insect habitat in the stream and by causing extreme siltation that seriously affects fish.27 The operators said 21"Interview with L. Jordan. 25Field observation at the new plant site of Eastern Magnesia Talc Co., Inc., Reading, Vt., Oct. 25, 1963. 26"'Pollution' means the placing in the waters of the state by whatever means any noxious or deleterious substance which is likely to create a nuisance, or renders such waters harmful to animal or aquatic life, or to use for domestic, commercial or industrial purposes or for recreation."--Vermont Dept. of water Resources, Vermont Laws Relating Lg Hater Resources, 1964 (Montpelier: [Dept. of water Resourcefi], 196u), p. 36. Stream classification refers to the placing of streams in certain categories which demands a particular level of non-pollution so that the waters are suitable for designated purposes.--lbid., p. 37. 27Letter from A. William Albert, Director, Water Pollution Con- trol Division, Vermont Dept. of water Resources, Montpelier, Vt., Dec. 10, 1964. disposal pro} rill diSpoSe ~ranite induf cutting opera Streams in t?- 1955- A stud the problem. disposal that seem the only the basins wil that any equip be exempt from added problem roads where th' Ages Corpo ratic mete disposal Plant. The bag 1°“ down the 1 Operations . 31 197 that they have for several years been attempting to solve their tailing disposal problem but without success. They yet do not know how they will dispose of their waste when the stream is classified.28 The Barre granite industry faces a similar problem. Abrasives from polishing and cutting operations are presently dumped into several small streams. Streams in the area will be classified for pollution control on July 1, 1965. A study group composed of granite producers is now working with the problem, but so far has had little success in finding a means of disposal that is economically practical. Thus far, settling basins seem the only possible method for getting rid of the waste, but cleaning the basins will be expensive.29 One advantage to their installation is that any equipment installed for the clean up of stream pollution will be exempt from the property tax.30 The location of most sheds is an added problem because they are clustered together between streams and roads where they have little room to construct settling basins. Rock of Ages Corporation has pioneered the way in using settling basins for waste disposal by constructing a large one near their main finishing plant. The basin has a secondary but important use. Water, previously - lost down the local brook, is now available for reuse in manufacturing operations.31 28Interview and field observation with Roger'W. Perkins, Plant Mgr., Eastern Magnesia Talc Co., Inc., Johnson, Vt., Oct. 28, 1963. 29Barre Granite Assoc., Inc., "Annual Report, 1963-1964" [Barre, Vermont, 196E] . (Mimeographed.) 30Barre Granite Association, Inc., "Report, September 196A" (ll—Barre, Vermonfl , September 21, 1961+). (Mimeographed.) 31Rock of Ages Corp., "The Whistle," VIII (Barre, Vermont, May, 196M), 8. (Mimeographed.) Sand anc infingoperatic ice:- has solvec pits nearby. '1“: Vermont' aware of any is :arble quarr- szoze or waste 72 aerial for than 33.291“, plastic 5 , ‘55:“ «aleral I “”rcoepetine . C) C .51: an ‘ ‘e‘at‘rl‘es ard air overhead it spa J p0881ble to Q oand and '1st as . uI‘ ing the . 198 Sand and gravel producers also face expensive waste removal costs. Washing operations result in large volumes of watery sludge. One pro- ducer has solved his problem by draining waste materials into old gravel pits nearby. The solution is not so simple for many others.32 Vermont's marble producers have the smallest amount of waste oc- currence of any of the state's mineral producers. Almost 100 percent of the marble quarried is transformed into a saleable product. Off-color stone or waste from regular manufacturing processes can be used as raw material for many different fillers, such as in paint, asbestos tile, paper, plastics, rubber, putty, and even chewing gum.33 Problems 9: glimgte Mineral producers in Vermont face a persistent problem that many other competing areas do not suffer to the same extent--severe winter temperatures and heavy snowfall.3u Snow removal and heating costs are major overhead items. Not all parts of Vermont are subject to the same severity, nor are producers in different industries affected to the same extent. But all must face the required costs of heating and snow removal if production is to continue; and, in some industries it is not economi- cally possible to continue producing during the winter months. Sand and gravel establishments are forced to discontinue opera- tions during the winter months. By late fall washing screens and conveyors 32Interview and field observation with HOrace Lawrence, Plant Mgr., Calendonia Sand and Gravel Co., Inc., E. Montpelier, Vt., Nov. 13, 1963. 33Interviews and field observations with H. S. Humphreys; and John H. Curtis, Mgr., Vermarco Plant of Vermont Marble Co., W. Rutland, Sept. 16, 1963. 3“For the importance of weather to industries see for example: James K. McGuire, "Weather Patterns in the Northeast, “ Ihggfleathen;__5 W, U. S. Weather Bureau (Washington: U.S. Govern- ment Printing Office, 1961). freeze solid Wit.- gst stockpile 1' Sonorete block C 537.31 operation . wally available Sizer ise, they Cold wf ere:.-t's miner; azdmrking cap; ad for states relatively seize 5373. granite p fiilar heating 2791688 BXPQI‘. 1'39 Pennsylvani season temp erat ‘s’ermo; :‘fl‘m ’+ will g, 3 range c ~. ~ “a-_‘ , as #3. D Ir" ’ ao‘fil 4 ”I their ‘- D , 37 . . x 3‘5 d . it C. 5353 a ally a~ ‘Cps 331.7 In a): U - C. 'U 0 U) 199 freeze solid with coatings of ice. Because of such conditions, operators must stockpile large quantities of sand and gravel to meet winter demands.35 Concrete block companies are subject to similar limitations in their sea- sonal operation. Their dependence upon large supplies of sand, not easily available in winter, discourages operation during these months. Otherwise, they too would be forced to store vast quantities of sand.36 Cold winters make heating costs a major part of overhead for Vermont's mineral establishments. These costs help reduce profit margins and working capital. A comparison of annual degree days37 for Vermont and for states with competing mineral producing areas shows Vermont's relatively severe winter temperatures (Table 40). Based upon degree days, granite producers in Minnesota, Wisconsin, and Maine should have similar heating costs; granite producers in Georgia and Massachusetts must have less expense. Neither the Georgia and Tennessee marble regions nor the Pennsylvania slate district experience the same severity of cool season temperatures as do the Vermont marble and slate regions. Vermont annually receives a rather heavy snowfall. Average amounts range downward from nearly 100 inches in the asbestos and talc regions of the north to approximately 60 to 70 inches in the slate and marble regions in the west and in the talc region of the southeast.38 3EInterview with H. Lawrence; and Ernest Boulez Boule’Sand & Gravel Co., Timmouth, Vt., Oct. 11, 1963. 36Interview with Charles Blair, Plant Supt., C a B Morse Block Co., Poultney, Vt., Oct. 2, 1963. 37A degree day is the number of degrees below 650 accummulated in the daily average temperature. For example, a daily average of 45° gives a degree day figure of 20. 38U.S., Weather Bureau, im te h ' ate : V mon (1959)! p0 3' vsw 'T‘A .. - .11 H E \-_ \l l L, Y“ o :1 o n;- E F f f) net? I l ' l I ‘ in m (n m (.3 P' 1! ..‘Aa \ i. w L. 200 TABLE 40.--Average annual lected cities in Vermont degree days for se- and other statesa State Degree Days VERMONT Burlington. . . . . . . . . . . . 7739 Cavendish . . . . . . . . . . . . 7953 Northfield. . . . . . . . . . . . 8171 Rutland . . . . . . . . . . . . . 7286 Georgia Athens. . . . . . . . . . . . . . 2711 Rome. . . . . . . . . . . . . . . 2865 Maine Greenville. . . . . . . . . . . . 9274 Bar Harbor. . . . . . . . . . . . 7280 Massachusetts Boston. . . . . . . . . . . . . . 5634 Minnesota St. Cloud . . . . . . . . . . . . 8879 Pennsylvania Allentown . . . . . . . . . . . . 5731 Stroudsburg . . . . . . . . . . . 6059 Tennessee Knoxville . . . . . . . . . . . . 3551 Wisconsin Oshkosh . . . . . . . . . . . . . 7606 wausau. . . . . . . . . . . . . . 7954 aU.S., weather Bureau, D c nni n u ni d limat -He tin D Da Normals, Climatography of the United States No. 83--for the various states (1963). Consequently, snow removal is a large and expensive task. Roads and storage yards must be kept open and the snow removed from stored materials before deliveries can be made (Fig. 28). According to an official of the Ruberoid Company, the asbestos producer in northern Vermont, they main- tain a road crew on almost a ZH-hour basis during winter months. The costs of keeping the roads and the quarries open are very high.39 Siliggsig Once the scourge of the granite industry, silicosis has been 39Interview with L. Jordan. 201 Fig. 28.--Snow covered storage yards and roads at Vermont Structural Slate Company mill in Fair Haven. largely elimina' until pneumatic industry during creased, so did sands for dust-< the Vermont gra: 2015 percent}; crease in Silicg tine, 240 (13,5 to have the dise would 91551200 ea: Raw mate Fit . “31 IrraoortancE 3“ ' m, d cers reco :1— C: ‘ f‘ +~~ 1| 'kre’ 202 largely eliminated as a work hazard. It was not a major problem at all until pneumatic drilling and finishing equipment was introduced into the industry during the early twentieth century. But as mechanization in- creased, so did silicosis. At one time (1937), just prior to union de- mands for dust-control equipment, over 45 percent of the men X-rayed in the Vermont granite industry had the disease. By 1956 the rate had dropped 40 Of course, this rate has been reduced from both a de- to 15 percent. crease in silica dust and retirement of affected workers. At the present time, 2h0 (13.5 percent) of the men working in the industry are known to have the disease.ul With continued retirement the problem of silicosis should disappear completely. Summary and Conclusions Raw material supplies of adequate quantity and quality are of vital importance to uninterrupted production and the maintenance of maximum production efficiency. Although several of Vermont's mineral producers recognize the need for determining adequate reserves for the future, too many do not. Many producers in the slate industry are not adequately planning for their future raw material needs. The nature of the raw materials, the conditions under which they must be extracted, the lack of space, antiquated facilities, and the re- quirements for uniqueness in design that demand large amounts of skilled qundrew D. Hosey, Victoria M. Trasko, and Harry B. Ashe, Qggtrgl oflSiliaosis_in_ihs_lszm2n3_firaniis_lndusirx. Public Health Service Pub- lication No. 557 (washington: U.S. Government Printing Office, 1957), pp. 51-52- ulInterview'with Maurille J. Fournier, Bus. Agent, Granite Cutters' International Assoc. of America, Barre, Vt., July 2, 1964. I and labor make I difficult. Fiel 3:5 producers a emblems. If Yemo. it is to expand 1 i239 every ef for that can help to begin to make in‘ iii: waste dispo: :2: of stream c2 zetfods for hand: Mineral ; hitter conditions stated costs. A] is becoming less .Kt‘Jro u. 203 hand labor make manpower costs high and automation and mechanization difficult. Field observations and interviews have shown, however, that some producers are not making maximum effbrts toward solving these problems. If Vermont is to continue an important mineral producer and if it is to expand its mineral economy, the state's mineral producers must make every effbrt possible to utilize up-to-date production techniques that can help to increase production efficiency. Producers must, also, begin to make intensive efforts toward solving their problems associated with waste disposal. If they delay action much longer, the state's pro- gram of stream classification will perhaps force them into very expensive methods for handling waste. Mineral producers in Vermont will continue to be subject to severe winter conditions and therefore must somehow compensate for their asso- ciated costs. Although some granite workers have silicosis, the disease is becoming less of a problem and should disappear almost entirely in the future. Previous tic. major prob-1e”. affect their eff L pmblms have bee tations in marke pox-tation, labor, ficulties associa 21aFliers may have. tential of Vemor. Even though some to ready Change, to amEliorate 0th 11%;» "‘t to SSlf~e~ Opportuni 'mnt' S mineral Lilization. Vet" CHAPTER XII OPPORTUNITIES Previous chapters have been devoted to a discussion of some of the major problems facing Vermont's mineral producers and how these affect their efficiency, their competitive position, and growth. These problems have been discussed in the context of business turnover, fluc- tuations in market demands, production efficiency, location and trans- portation, labor, finance, taxes, power consumption and costs, and dif- ficulties associated with extraction and manufacture. Although previous chapters may have, at times, outlined a rather drab picture of the po- tential of Vermont's mineral industries, some bright spots also appeared. Even though some of the problems investigated do not lend themselves to ready change, the state's mineral producers do have the opportunity to ameliorate others through decisive remedial action and a strong com- mitment to self-evaluation. Opportunities do exist for future development and growth of Vermont's mineral industries. Technological advances in the fields of engineering, chemistry, and physics have opened new horizons for mineral utilization. Vermont has a wide variety of known mineral materials, such as low-grade copper deposits, iron pyrite, and dolomitic limestone, none of which are presently under development. Too little is known of the quality and quantity of these materials. Vermont has the opportunity to explore possibilities for their utilization. 204 The unfo mt nor the sta the scope of mir develop new proc now produced in state's mineral The pur; Lea-ELnative stuc tries make an ac research of this gems to success Vermont: a .350,000 annual] ails expenditure “,9 "‘ development the + sate; its k devel opment was for “ ‘ the DlViSiOI Beam use of the 37,11 «‘ able fer p: 205 The unfortunate truth is, however, that neither the state govern- ment nor the state's mineral producers have done enough to determine the scope of mineral availability in Vermont, to find new markets, to develop new production techniques, or to develop new uses for minerals now produced in the state. Also, too little has been done among the state's mineral producers for cooperative action. The purpose of this chapter is to show through examples how imaginative study of these opportunities could help the mineral indus- tries make an added contribution to the state's economy. The results of research of this kind will not always lead to success. And yet, the only means to success is through the chance of failure. State Efforts at Development Vermont's State Development Department spends approximately $350,000 annually for development in all segments of the state's economy. This expenditure is certainly not large. The Industrial Division within the Development Department is responsible for aiding all industries in the state; its budget is indeed small. The 1963 budget for industrial development was $37,286; for l96u it was $46,274. Salary expenditures for the Division's workers use up a large part of the budget each.year. Because of the addition of an assistant director to the staff, the money available for promotion and development actually decreased from 1963 to l96h, although the budget figure was higher. This staff addition in 1964 brought the annual salary consumption to over $20,000. In spite of the budget's new salary load, the original appropriation for 1965 l‘ir. J 831$: adequate. His C Lust mark with 6 their monies are Lifiustrial Divis iniustries is bc a-d questioned. tit have never 1 to effectively ; {.1 T‘Temont ind‘. 3-:1cally is em; “Hal Purposes atle for Work ‘w 206 ($44,834) was less than the amount appropriated for 1964.1 A special session of the State Legislature later added $34,922 to the 1965 budget for a total of $79,756.2 Mr. James S. welch, Director of the Industrial Division, claims the appropriation for 1965 is inadequate although repeated correspondence has failed to obtain a commitment from him as to what amount would be adequate. His claim, however, would seem justified because his personnel must work with all the state's industries, and only a small portion of their monies are available for work with the mineral industries. The Industrial Division's inability to effectively aid the state's mineral industries is borne out by complaints of mineral producers interviewed and questioned. Several producers say that they have asked for help but have never received any.3 The inability of the Industrial Division to effectively attract new industries into the state, to adequately aid all Vermont industry generally, and to help the mineral industries spe- cifically is emphasized when one considers its funds available for promof a tional purposes in l964—-$3,000! If more funds and personnel were avail- able for work with Vermont's mineral industries, greater effbrt could lFigures obtained from a thermofaxed copy of the 1964-1965 budgets for the Vermont Development Dept. sent by letter from Ruth L. Stillings, Secy. to Roland R. Vautour, Commissioner of the Vermont Development Dept., Montpelier, Vt., Nov. 27, 1963. 2Vermont, General Assembly, 5 lv Pa 3 he Gen ral e; S 0 o h -. ‘ o - o .. h )0‘ e. -‘S H ’6 (Montpelier, 1964), p. 42. 3Interviews with Allen C. Moore, Treas., Vermont Kaolin Corp., Bristol, Vt., Sept. 18, 1963; Theron A. Yager, Pres., Vermont Talc Co., Chester, Vt., Sept. 27, 1963; and also responses from questionnaires. uInterview with James S. welch, Industrial Director, Vermont Development Dept., Montpelier, Vt., Nov. 18, 1963. *ezade toward fl art-:91: araIySis. “who investme'r U“. ”D ‘9. x l”“’tar.t { Li H C 01C. 'éy‘lo final-L. Gran ted , for ommotior. o f sion in Chapter - antral industri to its economy t waxia or New YO] research pro gra which are av ail University whex ics. Research as a light reig not: being appl In the quested ’ alon 207 be made toward finding new markets for the state's mineral products through market analysis. Increased promotional activities directed toward ac- quiring investment capital and new mineral industries could be other important functions. Minerals Experiment Station or Laboratory Granted, Vermont is a small state and has little money available for promotion of the state and direct aid to its industries, but are there not other ways to assist the state's mineral industries? Discus- sion in Chapter II pointed out that sales, per capita, made by Vermont's mineral industries (other than mineral fuels) are much more important to its economy than are the same industries to states such as Pennsyl- vania or New York. Yet, Pennsylvania supports an extensive minerals research program at The Pennsylvania State University, the results of which are available to the interested public.5 New York has its Alfred University where extensive research is carried on in the field of ceram- ics. Researchers there have also done intensive study on using slate as a lightweight aggregate material. The results of this research are now being applied near Castleton, Vermont. In the 1940's Dr. Charles Doll, Vermont's State Geologist, re- quested, along with the support of the Development Department, that a minerals experiment station or laboratory be established in Vermont. The State Legislature turned down the proposal. In the fall of 1963 5See for example: 0. W} Berry, Y. S. Kim, and D. R. Mitchell, Progress Report: §late and Othez Ngnmetalligs Project (University Park, Pennsylvania: The Mineral Industries Experiment Station of The Pennsyl- vania State University, January, 1964). 3:. Doll renewed request. Hr. Ro Ccmssioner of :ition of the ne sipport any atte of the legislati Seventy-nine per tiormaire feel 1 state's mineral carefully the m u‘eraont. Pennie Along w. intensive field eral resources developed miner atone producers laterials they ‘ a Orilnated Stat E 208 Dr. Doll renewed his request.6 So far, nothing has come from his renewed request. Mr. Roland Vautour, just prior to his recent resignation as Commissioner of the Vermont Development Department, expressed a recog- nition of the need for such a research center and said that he would support any attempt to establish one. The problem is to gain the support of the legislative leaders and to find the funds for its establishment.7 Seventy-nine percent of the mineral producers answering the general ques- tionnaire feel that a minerals experiment station would benefit the state's mineral producers. The State Legislature should investigate carefully the need for and the feasibility of such a laboratory in Vermont. Pennies invested now could accrue dollars in the future! Field Study Along with the establishment of an experimental laboratory, an intensive field study and laboratory survey of the state's available min- eral resources should be made. No adequate data showing the state's un- developed mineral resources is presently available. The state's dimension- stone producers need to know specifically the quality and quantity of materials they have available. Some individual producers are pursuing exploratory work for their own requirements, but Vermont needs a co- ordinated statewide program. This opinion recently received support from Dr. Charles Doll in a newspaper release where he said that little or nothing is known about Vermont's mineral deposits as a whole, but if 6Interviewwith Dr. Charles Doll, State Geologist, Burlington, Vt., Jan. 25, 1964. 7Letter from Roland R. Vautour, Commissioner, Vermont Development Dept., Montpelier, Vt., Feb. 11, 1964. are were known: there were a co: try markets, whf are to continue adequate reserve proved and plans be expensive and return possible aineral industri r3301? could per' 209 more were known, some of them could become industrially important if only there were a comprehensive program of exploration.8 If building indus- try markets, which need large volumes of relatively homogeneous material, are to continue increasing in importance to Vermont's mineral producers, adequate reserves of stone suitable for structural purposes must be proved and plans instituted for their development. Such a study would be expensive and time consuming, but it is necessary for the largest return possible on present and future capital investments in Vermont's mineral industries. Field studies in conjunction with a minerals labo- ratory could perhaps help attract new mineral industries into the state. Imaginative Investigation A minerals experiment station, along with an intensive field study, plus imaginative investigation could take advantage of possible opportunities for exploring Vermont's known mineral deposits. An ex- ample of the type of opportunities open to imaginative exploration is currently in the planning stage under ”private" development. According to Mr. W3 A. Dezaine of the Eastern Magnesia Talc Company, they plan to produce an abrasive material from garnet contained in schist deposits near their present talc plant at Gassetts. This planned development is dependent, however, upon the results of raw material testspresently underway.9 There are other opportunities open to intensive investigation through public supported research in the laboratory and field, plus 8W. December 1. 1964. p. 3. 9Interview with W. A. Dezaine, Plant Supt., Eastern Magnesia Talc Co., Gassetts. Vt., Oct. 25, 1963. 210 imagination. For example, Vermont has large deposits of dolomitic lime- stone that could possibly be utilized for magnesium. As early as 1944, David E. Dunklee and A. R. Midgley in a publication "Our Fertilizers Need Magnesium” mentioned this possibility.10 The prospect is certainly not out of the question. In fact, a plant in North Carolina presently extracts magnesium sulfate, and another in Alabama produces metallic magnesium, from dolomitic limestone.11 According to Dr. Doll, kaolin deposits with 30 to 40 percent alumina content are scattered around the state. Some deposits at Benning- ton and Brandon have an alumina content sufficient that they could pos- sibly serve as a raw material for aluminum, but nothing has been done to determine if they are amenable to commercial use.12 Dr. Doll claims that extensive deposits of limestone in the Champlain Valley could have potential value as raw material for cement plants, but, unfortunately, not enough analysis has been done on the many deposits to make any precise statement about their utility, but he adds that the lack of an adequately cheap transport system might preclude the development of such an industry here.13 Although Dr. Doll's statements give some hope of possible cement-plant developments, it is likely that such establishments in the Champlain Valley area would experience severe lOBetter Cmps mtg Plant Eogd, XXVIII (June-July, 1941+). 23- 11Letters from Philip N. Sales, Chemical Engineer, Minerals Re- search Laboratory, North Carolina State College of the University of North Carolina, Asheville, N. C., March 6, 1964; Thomas A. Simpson, Chief, Economic Geology Division, Geological Survey of Alabama, University, Alabama, May 4, 1964. 12Champlain waterway Study Commission, "Hearings" (Burlington, Vermont, August 27, 1963), p. 18. (Mimeographed.) lBIbing PP. 17'180 211 competition from a well-established and large cement producer in Glens Falls, New York, a town lying just south of Lake Champlain's upper end. Still, the possibility merits further investigation because entrepreneurs initially entering the business could have the advantage of constructing a modern plant with the most up-to-date equipment, which might help give them a competitive advantage. waste Utilization Perhaps one of the most pressing needs and best opportunities for advancing Vermont's mineral economy is through greater exploration of possibilities for using mineral wastes. Through the many years of mineral extraction in Vermont, large amounts of waste material have accumulated. Debris from quarrying and milling operations marks the countryside. Grotesque rubble piles stand as testimony to the high amounts of waste--and its consequent costs--in most of Vermont's mineral indus- tries. Although_attempts at waste utilization have been made, some of which have been successful, much more research needs to be done. Rapid advances in technology should encourage Vermont's mineral producers to explore new possibilities for mineral waste utilization; and with the establishment of a minerals experiment station, some of these "possi- bilities" for waste utilization might be proved out on a pilot-plant stage. Granite Huge accumulations of granite grout (waste) are available in the Barre-Montpelier area. What possibilities exist for using this material? Only a few years ago pulverized granite had a rather large market as poultry grit. In 1961 approximately 200,000 tons of granite were marketed for this purpose in the United States. It sold for an average price of 212 $9 a ton.14 In the 1950's two poultry grit establishments operated in the Barre, Vermont, area-~a branch of the Wells-Lamson Corporation and the Stone Mountain Grit Company, a firm controlled from Georgia. Neither of these establishments now operates. The wells-Lamson establishment discontinued poultry grit production in 1957, and the Stone Mountain Grit Company closed in 1961. According to a representative of the wells-Lamson Corporation, they once distributed granite poultry grit throughout New England, New York, New Jersey, and nearby Canada. In the early 1950's, Georgia pro- ducers became competitive in New Jersey, and in 1953-1954 a large and modern plant began producing at West Chelmsford, Massachusetts. Trucks hauling from the West Chelmsford plant penetrated the Maine and Con- necticut markets, and wells-Lamson could no longer remain competitive. By 1956 they were left with little more than the Canadian market, which was not large enough to warrant their remaining in operation. Transpor- tation rates were the primary factor making them noncompetitive, but difficulties in operating crushers and screens during severe weather in the winter and spring months--the main periods of demand for grit-~added to production costs. They were finally forced to discontinue operations in 1957.15 What prospects exist for future utilization of granite as poultry grit? An investigation was made of the trends in poultry production in New England and in the North Atlantic States, and several feed dealers 14Perry G. Cotter and Nan C. Jensen, Minegals Xeazbggk: 196 , Vol. I: Stgge, U.S. Bureau of.Mines (washington: U.S. Government Printing Office, 1963), p. 15. 15Letter from Frank wall, Vice Pres., Kelley Construction, Inc., Barre, Vt., writing for Maurice Kelley, Feb. 24, 1964. 213 were contacted to determine if they handled this material or if they had calls for it. Of six feed companies contacted, two indicated that they still sell this material, two continue to have calls for granite grit but do not sell it, and two said that they have never sold it.16 One feed dealer expressed the view that the poultry industry "in Vermont is about finished."l7 His statement has considerable validity not only for Vermont but for New England and even the North Atlantic States as a whole. For example, since 1950 the total number of turkeys produced annually in New England dropped from 1,182,000 to only 754,000 in l963--a reduction of over 36 percent. The downward trend in the production of chickens in New England is even more pronounced. .A slight upward trend occurred in 1962, but 1963 saw a decrease in production. From a peak year of 29,430,000 chickens raised in 1953, annual production for New England fell to a low of 16,658,000 in 1961. Production in the North Atlantic States dropped from 93,800,000 in 1951 to a low of 46,270,000 in 1963 (Table 41). These figures represent a 43 percent decrease in New England and a decline of over 49 percent in the North Atlantic States. High freight rates, severe competition of granite grit producers in Massa- chusetts, and declining numbers of poultry in the Northeastern United States make very dim the prospects for future use of Vermont granite as poultry grit. 16Letters from Goodwin E. Crosby of E. C. Crosby & Sons, Danby, Vt., Feb. 4, 1964; Richard E. Ide of E. T. & H. K. Ide, Inc., St. Johnsbury, Vt., Feb. 4, 1964: C. W. Landry, Mgr., Crosby Milling Co., Brattleboro, Vt., Feb. 18, 1964; Glenn C. Mix, Pres., E. W. Bailey & Co., Inc., Mont- pelier, Vt., Feb. 13, 1964; L. M. weyker of Old Fox Agricultural Sales, Inc., E. Providence, R. 1., Feb. 11, 1964; C. W. Hedrick of the Ralston Purina Co., St. Johnsbury, Vt., Feb. 5, 1964. 17Letter from G. E. Crosby. 214 TABLE 41.--Trends in poultry production in the North Atlantic and New England Statesa Total Farm Chickens (except Broilers) and Turkeys Raised Annually in North Atlantic and New England States, 1950-1963 Total Chickens Total Turkeys Raised Raisedc (Thousands) (Thousands) Year North Atlantic New England North Atlantic New England 1950 90,648 27,571 4,074 1,182 1951 93,800 28,429 4,631 1,261 1952 80.546 28.777 5.835 1.824 1953 90.417 29.430 5.259 1.617 1954 83,612 28,714 5,645 1,745 1955 77,424 28,212 5,086 1,481 1956 74.213 23.685 4.567 1.252 1957 63,018 21,353 4,148 1,194 1958 65,118 21,219 3.645 1,012 1959 58.275 19.684 3.531 945 1960 49.723 18.265 3.330 837 1961 47.912 16,658 3,601 995 1962 47,085 17,145 2,871 744 1963 46.270 16.986 2.788 754 aNorth Atlantic States includes the New England States plus Penn- sylvania, New Jersey, and New York. bCalculated from: U. 3., Dept. of Agriculture, chicgegg and Eggg; .C' P10011013 'QDi1.: . .__‘Q ‘0 Q 041° 0 Statistical Bulletins No. 183 and 28? (Wash- ington: U. S. Government Printing Office, 1956, 1961, and annual Reports °Ca1cu1ated from: U. 5., Dept. of Agriculture, IQ:K§1§L_E§EQ "oo- .0 lg 00 _o. g {a ;_o 0“ g 0}“: u~ - : {-V :9 W, Statistical Bulletins No. 182 and 286 (washington: U. S. Government Printing Office, 1956, 1961; and Annual Reports 1960-1964). Other possibilities investigated were the potential uses of granite dust as a fertilizer and as a soil conditioner. Granite contains materials such as potassium.that could be used as a plant food. Professor Edward Higbee in his book Amgxiggn_Agzigultgzg says that granite dust has been used successfully in the tobacco fields of the Connecticut 215 River Valley,18 but one of the largest granite producers in the region claims that to his knowledge there are no tobacco growers still using this material.19 Investigators at the University of Vermont and at several colleges and universities in other granite producing states have done research on granite dust to determine if it could be used as a soil conditioner or as a fertilizer. The Director of the College Experiment Station at The University of Georgia described in detail their experiments carried on over a period of several years to determine the potential of granite dust as a fertilizer. Although four and five tons of dust were applied per acre, they have never been able to Show "any significant response from "20 The Institute of Agriculture at the Univer- the use of the material. sity of Minnesota has not even attempted such experiments "due to the lack of minor elements."21 Others indicated that they have never at- tempted such experiments because they felt granite would have little value when used for this purpose.22 18 r = G C n eruaiicn (New York: John Wiley & Sons, Inc., 1958), p. 360. 19Letter from R. Andrew Fletcher, Treas., H. E. Fletcher Co. W. Chelmsford, Mass., May 11, 1964. 20Letter from E. Broadus Browne, Director, College Experiment Station, The University of Georgia, Athens, Ga., Feb. 6, 1964. 21Letter from William P. Martin, Head, Dept. of Soil Science, University of Minnesota, St. Paul, Minn., Feb. 10, 1964. 22Letters from A. B. Prince, Soil Chemist, Dept. of Agronomy, University of New Hampshire, Durham, N. H., Feb. 7, 1964; M. K. Sadik, Research Asst., Dept. of Soil and Crop Sciences, Texas A & M University, College Station, Tex., March 10, 1964; B. A. Krantz, Extension Soils Specialist, Agricultural Extension Service, University of California at Davis, Calif., April 16, 1964. 216 According to Professor B. A. Krantz of the University of California at Davis, there is a growing market in California for granite aggregate as a landscape medium. Landscapers stock various diameters and colors for use in their natural form or in concrete that give varied effects to home and garden.23 Ornamental horticulturist, Harrison L. Flint of the University of Vermont, expresses doubt as to whether crushed granite can be used in the Northeast in the same way as it is used in California because of the difference in architectural styles, but he does feel that crushed granite provides excellent cover for driveways, for eave lines to catch roof-water drip, and for cover in places hard to maintain or to keep in vegetation.24 A Rock of Ages Corporation representative ex- pressed the view that the market for this kind of material probably would not be large enough to warrant large-scale production. To obtain dif- ferent colors-~Barre granites are a very consistent color of grey--Rock of Ages has attempted to produce artifically colored granite. They have found that production methods giving artifically colored granites un- affected by ultraviolet light are too expensive.25 Still other possibilities exist for the utilization of granite grout. Georgia producers, for example, market granite for use as a fil- 26 tration material, and crushed granite screenings have been produced in 23Letter from B. A. Kranz. 2("Letter from Harrison L. Flint, Extension Service, University of Vermont, Burlington, Vt., April 27, 1964. 25Letter from Cyrus Y. Ferris, Chief Engineer, Rock of Ages Corp., Barre, Vt., April 28, 1964. 26JamesI L. Vallely and Garland Peyton, ' r ea : 6, Vol. III: Th e1 iineza a1 Indu ustry 9f Gggzgig, U. S. Bureau of Mines (wash- ington: U. S. Government Printing Office, 1963), p. 8. 217 South Carolina for use in glass manufacture.27 Vermont has no glass- making establishment. An investigation of the possibilities of such an establishment would certainly be worthwhile. Further exploration of these and other possibilities should be undertaken by Vermont's granite producers. Iglg Possibilities for utilizing talc tailings (waste) were also investigated. Talc, a hydrous magnesium silicate, could act as a soil nutrient if only it decomposed rapidly enough. The release of the mag- nesium in the talcose form, however, is very slow because it is only slightly soluble in water.28 Researchers in North Carolina, New York, and Texas, all large talc producing states, say that they are not aware of any study in their state directed toward using talc waste as a mag- nesium source, but all gave the opinion that obtaining magnesium from talc is, at the present time, not practicable.29 Management at the Eastern Magnesia Talc Company's Johnson estab- lishment claims that they once had a buyer for their tailings. A Canadian refractory company planned to produce bricks from these tailings, but 27Wallace W. Key, George H. Holmes, and Nan C. Jensen, W Xegzbggk: 1959, Vol. I: Stgge, U.S. Bureau of Mines (washington: U.S. Government Printing Office, 1960), p. 20. 28Dunklee and Midgley, m; and William H. Longstaff and E. R. Graham, "Release of Mineral Magnesium.and Its Effect on Growth and Composition of Soybeans," $gil_figigng§, LXXI (March, 1951), 173. 29Letters from P. N. Sales; M. K. Sadik; Murray H. Milford, Asst. Professor, Dept. of Agronomy, Cornell University, Ithaca, N. Y., March 2, 1964; John M. Parker, Professor-in-Charge, Geological Engineering, North Carolina State of the University of North Carolina, Raleigh, N. C., March 3, 1964. 218 freight rates proved too high, and the two firms abandoned their plans.30 Couldn't a pilot plant be set up to determine possibilities for producing magnesite bricks at this establishment or at other talc operations in the state? Slate waste slate has several uses whose potentials have not been fully explored. Three dealers in art supplies say that slate is used as a sculpture medium, but the present market is not large.31 According to Mr. Robert Robinson, an instructor in art at Castleton State College, Vermont, block prints have been made of slate with a very attractive effect.32 The market for slate as an art and sculpture medium should be investigated thoroughly by producers. Ground slate makes a good surfacing material for tennis courts. It can function as a filler in road asphalt, roofing mastics, oil cloth, linoleum, and paints.33 Researchers, as early as 1924, found it useful as a filler in rubber shoe heels and automobile tires.34 With a rapidly advancing technology and the growing number of synthetic mixtures and compounds, there should be increased possibilities for using slate as 30Interview with Roger'W. Perkins, Plant Mgr., Eastern Magnesia Talc Co., Inc., Johnson, Vt., Oct. 28, 1963. 31Letters from Frank C. Gaylord, Sculptor, Barre, Vt., Feb. 16, 1964; Sculpture House, New York, N. Y., March 2, 1964; Jack D. Wblfe, Pres., Jack D. Wblfe, Inc., Brooklyn, N. Y., April 28, 1964; Ettl Studios, Inc., Ettl Art Center, Glenville, Conn., March [5], 1964. 320hserved at the Brooklyn Art Show, Brooklyn, N. Y., April [15], 1964. 33Fillmore C. Earney, "The Slate Industry of Western Vermont," W. LXII (October. 1963). 309. When Ways to Use Slate." Scientific American. cxxx (March. 1924). 167. c 219 filler material, but much more research is needed in this direction. According to Robert L. Bates in his book Geology of the Industrial Rocks and Minerals, crushed slate can be fused with steel-mill slag and injected into a jet of steam or air to form an insulating material known as rock wool or mineral wool. It can also be used in acoustical tile, amber glass, and slate-lime brick.35 Few of these possibilities for using and marketing Vermont's slate waste has yet been adequately explored. Evidence of the application of technology is already at hand in the Vermont Slate region. One producer in west Pawlet uses large quan- tities of slate waste. workers add resins to crushed slate that is pressed into slabs, baked, and then sanded. The result is an excellent chemical-resistant table—top material.36 Experiments directed toward using slate as an aggregate have been underway for several years.37 Alfred University in New York, during the early 1960's, carried on extensive research for a New York firm to determine the possibility of using Vermont slates as a lightweight aggre- gate material. The tests proved favorable and in the summer of 1962 construction began on a plant just south of Castleton. The original plans called for using extensive acreages of "fines,“ residue from a former establishment that made granules for roofing shingles. These 35(NewYork: Harper & Brothers, 1960), p. 61. 36Interview and field observation with Patrick Mulhair, Gen. Mgr., Durock Corp., W. Pawlet, Vt., Oct. 5, 1962. 37See for example: J. E. Conley, "waste Slate as a Raw-materials Source of Lightweight Aggregate," Transagtions 9f the American Institute of Mining Engineerg, CXLVIII (1942), 161—66; J. E. Conley, et al,, Pro- duction of Lightweight Aggregate from Clavsr Shales. Slates and Other Materials, U.S. Bureau of Mines Report of Investigations 4401 (washington: U.S. Government Printing Office, 1948). 220 "fines" were to be screened, mixed with chemicals, pelletized, bloated in a rotary kiln, crushed, sorted into various sizes, and then marketed to block and structural cement companies. Although early experiments in using these "fines" proved successful, recent attempts in using them have not worked, and the firm has been forced into a more expensive operation. To obtain raw material, they have reopened an adjacent quarry and have installed a crusher to prepare the slate. This alteration of plans has increased production costs approximately $1 a ton. When the difficulties of using the "fines" are worked out, the producers hope to return to their original plans. This same firm is now developing the final stages of plans for building an aggregate plant in Albany, New York, that will receive its raw materials from their Castleton quarry.38 In Chapter VI proposed Vermont highway systems were discussed. A total of 574 miles of federally supported interstate and primary roads are to be built during the next 14 years.39 According to Mr. H. F. Farrington, a Highway Planning Engineer in the Vermont Depart- ment of Highways, there will be a large demand for stone as sub-base materialfLO Granite producers have already supplied large quantities of grout for the construction of the interstate system between Montpelier and Burlington. A forward-looking slate producer, with large accumulations 38Interviews and field observations with Ryan T. Oakes, Plant Mgr., Vermont Light Aggregate Co., Castleton, Vt., Oct. 4, 1962, March 3, 1964, and July 17, 1964. 39Highway Planning Division, Vermont Dept. of Highways. Vermgnt's P P ed h a ( [Montp elier, 1E:Iear__1annina__rcgzan_2n_ihe_E__era1_Aid_Hia;u;LJEnenams VtZ],1963); and U. 8., Bureau of Public Roads, Qggntgrly_figpgnt_gn_the _edera1:Aid_Hig_wax__rcaram.(September 30.1964) “OLettcr from H. F. Farrington, Highway Planning Engineer, Ver- mont Dept. of Highways, Montpelier, Vt., Nov. 27, 1964. 221 of waste, might profitably investigate this prospect. A new primary highway is to be constructed from Whitehall, New York, eastward to Rutland, Vermont. The road must pass directly through the slate produc- ing region, and the region's central location along the construction route is an added bonus. Once production is established, a producer Should have a continued, but perhaps limited, market for crushed slate as surfacing material for unpaved secondary roads in the area. Mr. Edward S. Carpenter, President of the largest slate firm in the region, thinks the idea has some merit. But he doubts its practicality after the major road project is completed because too many of the sec- ondary roads are already paved.”l Diversification and Promotion During 1962 a significant development occurred in the stone in- dustries of Vermont. The total tonnage for all stone decreased by 37 per- cent, but the value of production increased by 6 percent. This situation is the result of an increased output of slate, marble, and especially granite as dimension stone. Although a decrease in tonnage with an in- crease in value would seem to be contradictory, dimension stone produced for use in architectural structures demands higher prices than does crushed and broken stone. Production of dimension granite for architec- 42 tural purposes in 1962 increased.fourf01d over 1961. Because Vermont's granite manufacturing (cut stone) establishments have been for many “Interview, Vermont Structural Slate Co., Fair Haven, Vt., May 20, 1964. “ZJames R. Kerr. W. Vol. III: T_.e__ln_h 14' - WW, U.S. Bureau of Mines (Washington: U.S. Govern- ment Printing Office, 1963), p. 3. 222 decades much too restricted in the types of commodities they produce, this production trend is especially encouraging. As early as 1931 Oliver Bowles and Paul Hatmaker of the U.S. Bureau of Mines pointed out the folly of producing only monuments, which at that time formed 96 per- cent of the granite industry's total production.“3 The industry's al- most exclusive occupation with monument and marker production stems primarily from a long period of competition from marble. Marble is cheaper to process, and this gradually forced the granite producers out of the structural market. Also, dimension granite (for architectural use) has long been produced in Maine. The Maine producers' established name in the field and their better access to cheap water transport have had a strong deterrence on Vermont producers re—entering the market. But now the Rock of Ages Corporation has reopened two of its old quarries that once produced excellent architectural stone. A quarry at Bethel produces a white granite, and one at Wbodbury furnishes a blue granite. Producers are also making a strong bid for the architectural market by increasing their use of Canadian granites. These granites give archi- tects and designers varied colors to choose from--such as pink, red, and black.)+4 Many cut-stone producers express the view that their ability to produce architectural material is highly dependent upon the current trends and whims within the field of architectural design. Twenty-one “3T en! 1 h: P-01u io - d U ‘ 0_ G ani ‘ - I. ‘ ice - 0 -, U.S. Bureau of Mines Report of Investigations 3065 (washington: U.S. Government Printing Office, March, 1931), p. 15. “ulnterview with.Milton V. Lyndes, Gen. Mgr., Barre Granite Assoc., Barre, Vt., July 2, 1964. 223 architectural firms were questioned about this problem. They were asked what they felt the future holds for granite, marble, and slate as archi- tectural materials and also what advantages or disadvantages they believe tend to favor or disfavor their use of stone. The answers from the 13 different responding firms varied but some responses were noticeably alike. Most respondents felt that the permanence, ease of maintenance, the aesthetic value, and the adaptability of stone were positive quali- ties. Eight of the respondents said that cost was the major deterrent in using stone. four indicated that freight rates were prohibitive, and two specifically mentioned that Vermont marble tended to stain when used on exteriors. Other negative points mentioned were: (1) samples of stone material are not always available for their consideration, (2) the architects find that they cannot obtain technical advice on the use of different stone products, and (3) the cut-stone producers are failing to develop new ways that their products can be adapted to building.45 It is evident from these complaints that some architects feel it is the responsibility of the stone industries to promote, to advise upon the use of, and to develop their products to suit the needs of builders and architects. These responses emphasize once again the need for a minerals laboratory in Vermont. It also makes clear the necessity for greater promotion and research activity by Vermont's mineral producers. Personal interviews and discussion with stone and other mineral producers in Vermont Show that there is indeed a lack of promotional uSLetters from the following architects: Ralph B. Haver, Arthur Feitel, Harold D. Steward, Robert C. Dean, Edward C. Bassett, warren H. Ashley, walter G. Andersen, Grant W. Voorhees, Edward B. Doucette, Leon Brown, Joseph Angell, J. R. Wilkinson, M. Dwight Brown. (For complete entry see bibliography.) 224 activity and a lack of marketing sophistication in general. Firms with as many as 20 to 30 men do not employ salesmen. Most small producers depend entirely upon buyer-initiated orders. Two large mineral producers, / 40 Few firms return- however, are planning to hire a full—time salesman. ing questionnaires indicated that they had salesmen. Industries such as slate, granite, and marble could benefit from a program of greater industry-wide advertisement and education of the public, for, as Ting magazine recently pointed out, there is a tremendous competition in the building products industry because "the technological advances of recent years have produced such an array of building materials that both home buyer and home builder are often confused in making a choice.”7 This statement has a direct bearing upon the complaints of architects. Scholars of the mineral industries have long been aware of the promotional needs in some of Vermont's stone industries. Bowles, as early as 1922, wrote that slate producers were losing out on the roofing Shingle market because of the lack of advertisement, and in 1931 he, along with Hatmaker, expressed the view that the granite industry very much needed cooperative advertisement.“8 The Barre Granite Association does advertise and promote the use of monuments, but its functions do not include promotion of architectural stone. A good example of the necessity for promotional activity is pre- sented in the recent public reaction to the costly commercialization of uélnterviews with T. A. Yager; and James Ticehurst, Vermont Associated Lime Industries, Inc., Sept. 6, 1963. “7"Building: Fight for the Home," Time, May 1. 1964. 9. 87- ‘ ”scliver Bowles, The Tgchnglggy 9f Slate, U.S. Bureau of Mines Bulletin 218 (washington: U.S. Government Printing Office, 1922), p. 22; and Bowles and Hatmaker, gpg_gitg, p. 20. 225 death and burial. This reaction has created a major challenge to the monument industry. Opinion among producers in Vermont and in other areas of the United States varies as to the impact that monumentless cemeteries (memorial parks) and memorial associations, groups which usually conduct their own funerals and burial, are having on the monument business.49 Mr. F. E. Foster, Executive Vice President of the American Monu- ment Association, and Mr. Milton V. Lyndes, General Manager of the Barre Granite Association, say that memorial associations have, so far, had little impact on the monument trade. Both Foster and Lyndes claim, however, that the memorial parks have indeed had a depressing effect on the monument business. According to Foster, the impact on Vermont pro- ducers is not yet as great as it could be because most memorial parks are in the Far West, a market area difficult to reach anyway.5O Georgia producers, on the other hand, have felt enough pressure from memorial parks that they have instituted large promotional measures to induce them to use stone slabs in place of the traditional upright marker.5l From several interviews with granite monument producers in the Barre district, it seems that there is indeed pressure from memorial parks and associations, but it has not reached a critical stage. Some ugLetters from James D. Horne, Sect., Atlas Granite Co., Inc., Elberton, Ga., March 13, 1964; E. L. Stockinger, The Stockinger Co., St. Cloud, Minn., March 24, 1964; William H. Kelly, The Leonard Granite Co., Chambersburg, Penn., March 25, 1964; Irene A. Podskalny, Owner, Adams Granite Co., Barre, Vt., May 27, 1964. 50Letters from F. E. Foster, Executive Vice Pres., American Monument Assoc., Inc., Olean, N. Y., March 25, 1964; Milton V. Lyndes, Gen. Mgr., Barre Granite Assoc., Barre, Vt., June 1, 1964. 51Letter from walton Y. Harris, Promotion Specialist, Elberton Granite Assoc., Inc., Elberton, Ga., March 19, 1964. renters Said save failed to remit has bee: teries.52 158W lesser degree, producers in t} assuring a corn he expects to a decreasing m: Opport: Plans and mark. mm D. Litti Iflket analyst 511 study of t aetivities"--m :mi'lcts on a 226 producers said that in some areas of the United States memorial parks have failed to implement their promises of adequate park upkeep; the result has been a return to the use of traditional markers and ceme- teries.52 Nevertheless, the effects of the memorial parks and, to a lesser degree, of the memorial associations should encourage monument producers in the granite and marble regions to investigate methods for aesuring a continued market for their monuments. The monument producer who expects to meet this challenge passively is likely to find he has a decreasing market for his products. Market Analysis Opportunity exists for the development of long-range production plans and marketing forecasts through research. Janet W. Miller of the Arthur D. Little Corporation, a research firm, recently pointed out how market analysts can~-through the use of statistical techniques and care- ful study of the "historical relationships among the appropriate economic activities"--make scientific predictions of future demands for certain products on a regional or national basis. Miller illustrates how sales forecasts, for the period up to 1970, were made for gypsum board in seven western states and the metropolitan areas of San Francisco and Los Angeles.53 Similar studies could be used to advantage by the state's larger mineral producers or groups of producers. 521nterviews with walter Caroll, Officer Mgr., L. 2. Hotte Granite Co., Inc., Barre, Vt., July 2, 1964; Ernest Hennis, Office Mgr., Adams Granite Co., Inc., Barre, Vt., July 2, 1964; Ernest E. Colgan, Owner, Williamson Polishing Co., Barre, Vt., July 2, 1964; Leon Trombley, Co- owner, Colonial Granite Co., Barre, Vt., July 20, 1964. 53"Forecasting Economic Activity," h P ofe i “a1 G a her, XVI (May, 1964), 19. One m: as already u: potential mar} that Vermont l- for the paper tion to work c 1 paper market: operations us< duction conti: should prove g. 30:1952 was c were produced. Paper market; «mrgia' s exce 1; Q \ lLQ‘ED‘BUde: fl- 0 «135": *1, o v-«VJ ‘Or I A“? 1 T3‘9: .. mtg .' Venn-0v) T3: ‘ DThE ..‘: .leonal 7, «L 227 One mineral producer in Vermont, the Vermont Kaolin Corporation, has already used the services of the Little Corporation for analyzing potential markets for their product. The work of the Corporation showed that Vermont Kaolin should attempt to increase its sales by producing more for the paper market. They now have a wet-processing pilot plant in opera- tion to work out any difficulties that might arise in producing for the paper market}!+ The change-over involves major alterations because former operations used only dry processing methods. If increases in paper pro- duction continue as they have during the past decade, their decision should prove profitable. Production of all paper in the United States for 1952 was only 10,898,000 short tons; in 1962, 16,459,000 short tons were produced.55 The Corporation hopes also to penetrate the Canadian paper market; there is no tariff on the entry of kaolins into Canada. Georgia's excellent kaolins may find the competition from Vermont severe. Cooperation and Organization The traditional ethos of small business in the United States is its independence, where the individual entrepreneur takes pride in his capacity for hard work and self-reliance. If only a man puts forth enough effort, he can carve out a niche in the market-place frontier. Unfortu- nately, as the high rate of business mortality illustrates, this dream is often difficult to fulfill. Problems of finance, aggravated by fluc- tuations in the general economy and an inability to acquire capital, sap 5”Interview with A. C. Moore; and letter from Allen C. Moore, Treas., Vermont Kaolin Corp., Bristol, Vt., Aug. 18, 1964. 55The Conference Board, The Economic Almanac, i264 (New York: The National Industrial Conference Board, 1964), p. 378. :36 strength oi .’ + 91 l. 4 2:589 J- UCv'Ja- flunpfis enCO\Jra( Viv-vb to business fai prise. Blot ali reamed throng} .um'.’ 99 "i'c'dles O4‘er! .01.” u ...ect as tech: cooperation an; 4 A . ;“Q .‘nzr: -0 . . a? I . ...:b a!) 1.331.;St1 2““.‘4: A.‘ ‘ULQI ‘Lbles nla'Vl Erma“ ‘ ‘Ag‘lts Th“ u ‘4 “A I! x "s‘ MP ‘. u “1dr“ a ‘ n 4‘ ‘0: 2” Op i Ge ,. a. Q ,3 “' lace]. ., V4 3.“. “JG Q». \ ' v.43! .L Q l~r nc :- .ce0§ p ‘ V 4.0?“ ‘ ‘ tip x. 228 the strength of the small business establishment. Transportation costs, market fluctuations, and competition from technologically superior pro- ducers encourage cut-throat competition and increase his susceptibility to business failure. Although every business faces, in varying degrees, these same problems, they are especially pronounced in the small enter- prise. Not all of these problems can be eliminated, but some could be reduced through cooperative effort. With thoughtful planning the oppor- tunities offered through planned organization can be as positive in their effect as technological innovation. The opportunities offered through cooperation and organization should also be carefully explored by the state's mineral producers. Barre Granite Association: an example The Barre Granite Association's (BGA) activities demonstrate what an industry can do through cooperation. Several of the Association's activities have already been mentioned--such as its consolidating ship- ment service, its cooperative apprenticeship programs, and its mainte- nance of credit ratings on monument dealers throughout the United States.50 The BGA has several other important functions. It controls the quality of members' production through Barre Guild inspectors. If producers' monuments fail to meet rigid standards, they do not receive the Barre Guild mark, a symbol of outstanding quality. To promote monument sales for all of the Granite Association's members, advertisement is done under this label. Unfortunately, some misuse of the Barre Guild mark occurs. Some smaller non-members of the Granite Association may finish a stone except for the lettering. They then persuade an Association member, 56This is done through the American Monument Association. ssecializing Z'rre Guild .- .I‘U I Elton V . 1.3” several proc admitted thz receive the throat comps f‘mctional g Cilities for U ., q?“ l‘r- ' use. h‘on lncr ? e. z. ‘I n- ‘Jj. I; b I“ 0 barre, I 'V‘“ “Rte 229 specializing in lettering, to complete the monument and to place the Barre Guild mark on the stone! Although the Manager of the RCA, Milton V. Lyndes, claims that the extent of this practice is negligible, several producers maintain it is fairly common.57 One producer readily admitted that he regularly sends his monuments to Association members to receive the Barre Guild mark.58 Although the BCA is very important to Vermont's granite indus- try, only 52 of the total 125 producers are members. This weakens the entire industry's competitive position because inferior stone may be, at times, passed off as Barre Guild granite, and the restraints on cut- throat competition are notzusstrong. Although this organization is functional and fairly well supported by granite producers, it has possi- bilities for development into a much stronger organization, especially through increased membership and extended functions for promoting granite as a building stone. Another function could possibly be instituted-- that is, the establishment of its own lending fund. When this idea was discussed with Mr. Lyndes, the Association's Manager, he expressed the view that such a plan could be implemented, but he feels it would be difficult because: (1) the funds necessary for successful operation would require approximately $1,000,000, and this would entail an increase in the membership fee which is now 1 percent of the annual gross receipts, and (2) the organization would, upon entering this field of activity, 57Interviews with Elgo Zorzi, Supt., Adams Granite Co., Inc., Barre, Vt., July 2, l96h; John Leppanen, Co-owner, North Barre Granite, Inc., Barre, Vt., July 2, 1964; Walter Caroll, Office Mgr., L. Z. Hotte Granite Co., Inc., Barre, Vt., July 2, 1964; Milton V. Lyndes, Gen.ng., Barre Granite Assoc., Barre, Vt., July 2, 1964. 58Name withheld upon the request of the interviewee. § ult n 'n tha A. q eith ,1: .‘I‘.’ u--;J. proper ole SUCK} . \ or ‘1 s ed ae t LEGS . 93'10ds ol‘. ’3 230 face the added problems associated with federal and state banking laws.59 Vermont's slate producers should consider the merits of an or- ganization similar to the BCA. They could also look to a competing slate region--the Pennsylvania slate district. This region has a strong association called the Pennsylvania Slate Producers Guild. The large number of establishments in the Vermont slate industry and conditions within the industry are such that a central organization could be very beneficial. The large number of establishments, however, would make difficult the organization and functioning of such a body, but with proper planning it could be done. Some producers in the region have long been aware of the need for such an organization. In the early 1900's and during the 1950's attempts were made to establish a slate association, but the efforts collapsed after a short while. The difficulties in establishing and maintaining such an organization arise from: (1) the ease with which small producers can enter the industry during periods of prosperity, (2) the tendency toward complacency when there is a large demand for slate, and (3) a constant threat of cut-throat competition even during periods when the slate market is not depressed. This last condition, of course, would be one of the main advantages of a slate association. The regulation of cut-throat competition could, to some degree, help stabilize profits.OO Sglnterview with.M. V. Lyndes. 60Caution would be necessary to avoid violation of federal legis- lation such as the Clayton and Sherman Anti-trust Acts. The Barre Granite Association was recently fined $75,000 under the Sherman Anti-Trust Act for alleged price fixing. The ~ cut-throat CO: hate been 591‘ surprising be: greatest ease gating the ex‘. the producer t et;.e But 50.". The fi slate tile ini sore of the ot entered the me turnng out ti ice only for ing prices. Min «,0 .rs are no .18 entire in: I‘m 0? busine Anothe 231 The Vermont slate industry, at the present time, is experiencing cut-throat competition in its tile and shingle commodities, whose effects 61 That these have been felt even in the Pennsylvania slate district. should be the commodities subject to the greatest price cutting is not surprising because it is this material that a man can make with the greatest ease when entering the industry with little capital. Investi- gating the extent of cut-throat competition is a difficult task because the producer who is cutting prices is not eager to make it public knowl- edge. But some pertinent data have become available--enough at least to establish that the problem does exist. The first slate producer in the region to market pre-packaged slate tile initially sold his product for 57 cents a square foot. Soon some of the other larger producers saw its possibilities, and they too entered the market. Within three years all of the major producers were turning out these packaged units, and several small firms began to pro- duce only for this market. Before long the several producers were cut- ting prices. As of June 1964, slate tile prices ranged from #7 cents to 35 cents a square foot. One wonders if perhaps some of these pro- 62 Such practices must hurt ducers are not selling at less than cost! the entire industry. A slate association might be able to reduce this kind of business activity. Another problem that would be amenable to some control through a slate association would be the practice of selling slate to "gypsies." 61Letter from W} F. Mullen, Executive Director, Pennsylvania Slate Producers Guild, Pen Argyl, Penn., Feb. 12, 1964. 62Data based on interviews with several slate producers who asked not to be identified. Independent 1 tive or p00? 3.— and. Tni occurs in shi file may have ; practice cont considerably. in what const the volume of of a slate as Bette slate cormodi °f small orde :‘nctions of I) (b the admini if the mam l“ Splitters are k V '03. r" ‘. ‘ c“ Home The a \ Mince”, bu "“1011. a Ee “Ste piles h :atc»: u #31 has . f. i U ‘ L ' rl 'l‘n Ll Oktnb'v 232 Independent truckers travel through the slate district and buy up defec- tive or poor quality stone and then truck it to markets in southern New England. This material is sometimes sold as quality stone, or, as occurs in shingle sales, a trucker may short sell a load of slate shingles. He may have purchased only 12 squares but sells them as 15. If this practice continues, the reputation of Vermont slates could be damaged considerably. Cooperative efforts at educating builders and contractors in what constitutes quality stone and in the techniques for determining the volume of various slate commodities could be an important function of a slate association. Better enforcement of quality and color standards for various slate commodities, cooperative advertisement, and collective shipping of small orders to a given point of destination could also be important functions of a slate association. An especially important function could be the administration of apprenticeship programs designed to train men in the many hard-to-fill positions listed by slate producers. Shingle splitters are so difficult to obtain that the larger firms constantly "poach" workers from smaller firms and from one another.63 The assistance of a geologist-mineralogist could aid most slate producers, but few can afford the cost. Collectively, through an asso- ciation, a geologist-mineralogist could be supported. Plant sites and waste piles have in the past been located over good beds of slate; raw material has been wasted through insufficient knowledge of its charac- teristics; and quarry costs have been higher than necessary because of 63Interview with A. B. Potter, Pres., AB Potter Slate Co., Poultney, Vt., Jan. 22, 196A. . I the prouucers tracting slate nth professio: cation is thro 3:. some of Ye -. that in one, tr gradual decline of the century It ~ cacle 42) . 233 the producers' inability to calculate methods for most efficiently ex- tracting slate beds. Such difficulties could frequently be obviated with professional assistance. Wan Still another but perhaps even more difficult approach to organi- zation is through amalgamation. This process has actually been occurring in some of Vermont's mineral industries, although it might be argued that in one, the marble industry, the process has gone too far. The gradual decline in the number of mineral firms in Vermont since the turn of the century can be assumed to be partially due to amalgamation (Table 42). TABLE #2.--Number of firms in the major mineral in- dustries of Vermont, 1900-1961!a Mineral Industries Year Marble Talc Limestone Granite Slate 1900 16 ’ -- -- --- -- 1910 10 6 7 256 54 1920 7 5 5 210 31 1930 -- 5 8 --- -- 1940 6 3 l --- 44 1950 -- 3 1 --- 21 196M 8 2 2 125 18 aCompiled frmm: George Perkins, ngggt_g§_th§ Stgtg_ggglggi§t . . . for the years 1901-1902. 1911- 1912, 1921-1922. (Fer complete entries see bibliography.) U.S.. Dept- of the Interior. W Ugitgg Stgtgfi: 1939, Part II, Non-meta; . U.S., Bureau of Mines. WW and 2.259.. Vermont Develop- ment Dept., ' V o M f u d P not (1964-1965 ed.; Montpelier: Industrial Division of the Vermont Development Dept., 1964). Anyone proposing a consolidation of firms will certainly be challenged as to its utility by the question: Wbuld it really solve anything? Not necessarily. The advantages of greater size offered through ans it lessen t Inc production skills and development its Person: tion units. plant and 3 products so facilities aUOther eSl hecause its 035931 Zatic Inc 01‘ larger 1 almost eatf Al'e CO 234 through amalgamation would not solve every problem of business nor would it lessen the need for adept financial and personnel management. Increased size, however, could give the larger firm a wider production and human resource base. Production activities and worker skills and knowledge could be more efficiently organized through the development of specialization. The larger finn could perhaps organize its personnel and old individual establishments into specialized produc- tion units. For example, one establishment having a limited physical plant and an inconvenient layout for large machinery could produce products such as monuments while another with better and larger plant facilities might concentrate on producing architectural stone. Still another establishment might be best utilized only in sawing or polishing because its location allows a cheaper method of waste disposal. If production and labor skills could be shifted around in such a way that the advantages of each establishment could be maximized, then the entire organization might become more efficient and profitable. Increased financial reserves would be another probable advantage of larger firms. Some markets, such as the architectural field, are almost entirely out of reach of most small producers because they cannot afford the expense of purchasing the necessary equipment to produce for them.6a The problem of inadequate financial reserves confronts the small producer even when he merely wants to acquire up-to-date machinery that could help him to remain competitive with larger firms such as the Rock of Ages Corporation, the Vermont Marble Company, and other large producers 6”Interview with Louis C. Simoneau, Plant Manager, Associated Granite Co., Barre, Vt., July 20, 1964. 235 who have begun to speed up production processes in polishing and in cutting monuments and architectural materials. Small producers are finding it increasingly difficult to compete with them. Such circum- stances have led to price cutting in the slate and granite industries. Greater financial strength that might become possible through amalgama- tion could help alleviate the tendency to resort to such practices. With effort, increased amalgamation in the granite industry might be possible, but unfortunately the traditions of pride, self- reliance, and, in many cases, family ownership through several genera- tions are strong deterrents to any consideration of relinquishing control of the business in part or in its entirety. Only 27 percent of the granite producers answering the questionnaire said that they had ever considered or would consider amalgamation. Of the eight slate producers answering the questionnaire, four said that they had considered such a possibility. Summary and Conclusions Not enough is being done to identify opportunities for Vermont's present mineral industries, nor are there any state-supported efforts directed toward the development of new mineral industries. Insufficient knowledge of the state's mineral resources demands a detailed, state-wide field exploration of the minerals in the state. A minerals field survey and experiment station could serve as an appro- priate research unit. Both the field study and the minerals laboratory could give a great boost to the development of present industries and might even attract new mineral industries into the state. Producers themselves should explore every possibility for waste 236 utilization. With imagination and research the problem is not hopeless as some slate producers have already shown. An encouraging feature of Vermont's granite industry is its increased production of architectural stone. Granite producers have too long depended almost exclusively on the monument trade. Vermont's structural stone producers should make added efforts to promote their products. Those active in the field of architectural design claim that sample materials are not always available, nor do they always know all of the technical qualities of stone they might like to use. Responses received from the sampling of architectural firms indicate that the structural stone producers need to advise architects and builders on the qualities and uses of their products. The problem of promoting their products among architects and builders is important enough that Vermont's mineral producers should investigate it in much greater depth than what has been presented here. Monument manufacturers should be alert to the need for reacting wisely to the effects of memorial parks and memorial associations even though their impact has been somewhat less pronounced on Vermont producers than in other areas such as Georgia. The use of private research firms to make market analyses has much to offer many individual producers. This type of work could also be carried out effectively under the sponsorship of the Vermont Develop- ment Department and industrial associations such as the Barre Granite Association or others if only they were organized. The many small mineral producers in Vermont's mineral industries could benefit greatly from closer cooperation and industry-wide organiza- tion. This is especially true of the slate and granite industries. 237 Although the granite industry already has an association, it could be 5 ‘tregthened through increased membership, expanded functions, and more intensive policing of its members. The slate industry with its many small firms should study the merits of the Barre Granite Association. A slate association or producers guild could help to control business p ractices detrimental to the entire industry and could help producers with technical and promotional problems. Amalgamation could offer some producers hope for increased financial strength and production efficiency through specialization of es tablishments within a firm. The possibilities offered through this fo m of organization need much more detailed investigation than has been p r esented here. CHAPTER XIII SUl-IMARY AND CONCLUSIONS Vermont's mineral industries face many problems that reduce their production efficiency. These problems, in effect, retard their growth and their ability to make a maximum contribution to the state's economy. Mineral establishments in Vermont are smaller than the national av erage. Vermont's small one-establishment mineral firms that employ only a few workers experience high turnover rates when compared to the S tate's larger mineral producing firms. The granite and slate industries have especially high turnover rates. Although specific reasons for the high turnover among Vermont's mineral establishments is difficult to d etermine, this condition, for the most part, cannot be considered a maximum utilization of the state's financial and human resources. Producers in several of Vermont's mineral industries face a maj or problem in their dependence on one or two restricted markets such as building construction and monuments. If these industries decline, th e mineral industries dependent on them founder. Although the dangers 0 1‘ cyclic fluctuations in the demand for the mineral industries' pro- ducts cannot be eliminated entirely, these variations could be reduced through greater product diversification. Expansion into new markets through market capture or developing new uses for present products could a1 so help. 238 239 Production efficiency is an important part of business success. Effectively measuring production efficiency, however, can be difficult. But by comparing annual value-added figures and man-hours of labor, a fair picture of relative efficiency in a given industry can be obtained because value added reflects how efficiently capital assets, overhead costs, and management techniques are utilized along with the labor input. Vermont's mineral industries compared in this context do not give an impressive showing. Low value-added figures in several of Vermont's mineral industries indicate that many mineral producers need to improve their management skills and to develop methods of systematic cost analy- sis such as are available through cost accounting. Vermont's location accentuates its transportation problems. Its position adjacent to an international border with its restrictive tariffs makes Canadian markets less accessible and reduces the marketing hinter- land available to mineral producers. Although the United States' center of population is shifting westward, Vermont's location near the large urbanized areas of the Northeastern United States is and will continue an important advantage. Producers must not, however, view this advantage as assuring them an unchallenged position in marketing. As western‘ markets grow, Vermont's competition from regions nearer to these areas will make it imperative that the state's mineral producers seek more efficient transport methods. Mineral shippers should give careful atten- tion to opportunities offered by consolidating shipments and by an increased use of water transport. The age of workers in Vermont's mineral industries is above the average for Vermont's other employed male workers. Although this struc- ture has some disadvantages, the advantage of accumulated skills among 240 older workers tends to offset the negative features of age. Mineral producers have expressed the View, through a state-sponsored study, that their need for workers will, during the next five years, remain relatively stable. The reasons given to explain this opinion are (l) expectations to mechanize and (2) in the case of the granite industry, a stable market demand for monuments. Mineral producers claim to have many hard-to-fill positions in their establishments but, at the same time, are doing little to assure that vacated positions will have qualified workers to fill them. The necessity for long-range planning is especially important to the state's mineral producers because of their intentions to become increasingly mechanized. This will require retraining many workers. Because the median number of years in school completed by males 25 years or older in Vermont's mineral producing counties is favorable compared with workers in competing regions of other states, the producers' task in training and retraining workers should be easier than that experienced by their competing counterparts. Labor-management relations, although not studied in great depth, appear to be fairly harmonious. Stronger efforts should be made by labor leaders to decrease irresponsibility among rank-and-file mem- bers such as is illustrated in "wild-cat strikes" and on-the-job feather- bedding. Management must begin to explore more carefully the social and psychological problems that will arise as they implement their plans to mechanize and automate. A comparative analysis of bank loan distributions for Vermont banks shows that a disproportionately large percentage of their loans are in real estate and not in commercial and industrial loans. Although 241 the results of the general questionnaire do not show that mineral pro- ducers have a pronounced difficulty in obtaining loans, extensive personal interviews with many small producers give strong evidence that they do. Overextended credit and interest payments on accounts-receivable loans are a persistent and severe problem among granite producers. Real property taxes are higher than those in many areas with competing mineral industries. The state's corporate income tax is not overly high, but Vermont's personal income tax rate places it near the top nationally. Vermont's high per capita tax burden probably gives the state's mineral producers a heavy tax bill. Taxes may deter pro- spective industrialists seeking to locate new mineral industries in Vermont, but most scholars of the subject find taxes of secondary impor- tance in making locational decisions. Tax assessment inequities are sometimes an important problem to mineral producers. This problem exists in Vermont's granite industry, and attempts have been made by listers and granite producers in Barre to adjust plant and land assessments in the Town. Considered as a percentage of value added, power costs are an important overhead item of Vermont's mineral industries. Electric energy purchases account for a large part of the total power cost in the state's mining and manufacturing mineral establishments; mineral fuel purchases are of lesser importance. Mineral fuels cost more in Vermont than they do in many states with competing mineral regions. The state's mineral producers' electric energy costs are not too dissimilar from those paid by competitors in other regions. The activities of extracting minerals and manufacturing mineral commodities in Vermont have many difficult problems associated with them. 242 The characteristics of raw materials and their location, and the climatic elements are not subject to change and will continue as major obstacles to the mineral industries. Field observations and interviews show, however, that management frequently does not give enough attention to conditions that are amenable to change through man's technological and organizational abilities. Multiple handling and inefficient waste removal especially need remedial attention. Opportunities for expanding production volume and sales and for entering new markets do exist for Vermont's mineral industries. These opportunities could be better realized if only state officials and mineral producers had a better knowledge of what mineral resources Vermont has and how much. An intensive field study should be made for this purpose. A minerals experiment station could have a positive effect in aiding the many mineral industries of Vermont in finding uses for their wastes, in developing new uses for present materials, and in giving producers technical advice. The state's mineral producers should more actively sell their products through both individual and industry-wide advertisement and education of potential users. This is especially true for those whose sales are greatly influenced by decisions made by builders and archi- tects. Likewise, monument producers, although not yet critically affected by the memorial parks and memorial associations, must take steps to reduce their impact. The sacred aura associated with death does not always include the sale of a monument! The establishment of industrial organizations could aid some industries considerably. This is especially true in the slate industry. Maintenance of quality standards, industry-wide advertisement, market 243 research, consolidated shipping services, and control of cut-throat competition are some of the many functions such organizations could have. Possibilities for and the advantages of amalgamation should be studied by many of the state's mineral producers, especially among those active in the slate and granite industries. Perhaps the most essential but elusive ingredient that comes within the recipe for opportunity is "imagination." To find solutions to problems retarding maximum production efficiency, to discover new uses for mineral products, and to develop better promotional programs for selling their mineral products will require an energetic imagination implemented through self-criticism and research. If these challenges are approached with the attitude that success is possible through per- sistent and intelligent effort, then, the mineral industries of Vermont can make an added contribution to the state's economy. The ideas explored in this paper require more detailed investi- gation. Some problems discussed here should be studied in greater depth so that the general public, state officials, and the mineral pro- ducers themselves can more readily understand the importance Vermont's mineral industries could have for Vermont's future economy. With this purpose in mind, the following recommendations are made for further study: (1) To develop methods for helping the state's mineral producers accept, understand, and implement methods of cost accounting, record keeping, and other business management techniques. (2) To explore possibilities for setting up mineral manufacturing establishments in Canada that would use raw materials produced in Vermont. (3) (4) (5) (6) (7) (8) (9) (10) (ll) (12) 2&4 To find ways whereby tariff duties can be lowered on fin- ished mineral commodities entering Canada from the United States. To find methods whereby small shippers in an industry could establish and maintain services for consolidating rail, truck, and water traffic. To establish the potential value of a Champlain waterway to the state's mineral producers. To seek methods of setting up more training programs for hard-to-fill positions in the state's mineral industries. To find the best means for establishing retraining programs to meet labor needs created by new technological changes in mineral establishments. To seek specific reasons for high labor turnover rates in quarries and methods for reducing them. To explore every means whereby labor can eliminate restric- tive work rules and on-the-job featherbedding. To determine the effects of the state's real property, and personal and corporate income taxes on its mineral estab- lishments and on its ability to attract new mineral industries. To establish the extent of assessment inequities and the problems associated with nonuniform criteria in assessing Vermont's mineral property. To find ways to aid mineral producers in their problems of waste disposal. (13) (14) (15) (16) (17) 245 To establish a plan for a comprehensive and detailed field study of Vermont's mineral resources so that new industries might be attracted to the state and so that present pro- ducers can plan more effectively for the future. To explore the opportunities a minerals experiment station could offer toward developing uses for mineral wastes, finding new uses for present products, and giving aid to producers' technical problems associated with their produc- tion activities. To determine those geographical areas where greater promo- tion is needed for Vermont's mineral products. To explore what markets for mineral products can be most easily penetrated. To seek ways to establish and maintain an industrial associa- tion in Vermont's slate industry. 90 10. ll. 12. l3. 14. APPENDIX QUESTIONNAIRE Do you feel that your business could be benefited by an industry- wide advertisement program? How many full-time salesmen does your firm employ? Part time? Do you use any type of program for exploring market opportunities? Have you ever requested promotional aid from the Vermont Industrial Development Commission? Did you receive the aid you requested? According to a recent study made by the Vermont Department of Em- ployment Security, producers in your industry expect to add only a very small number of workers in the next few years? How could you account for this? Is it a stable market demand, an expecta- tion to mechanize operations, or some other factor? Do you have a regular recruitment program which has as its purpose the placement of workers in hard-to-fill positions in your estab- lishments? What methods of recruitment do you use? Do you have a training program in your plant to fill skilled posi- tions that are new or which are to be vacated due to retiranent? The age of workers in the mineral industries of Vermont is slightly above the average for all manufacturing workers in the state. Do you think that this is a disadvantage for the mineral industries? Why? What is the average age of your employees? How could you account for the lower/above average age of your workers? Do you feel that the level of education completed is an important factor in the productivity and efficiency of your workers? Why? What is the average educational level of your workers as a whole? Do you maintain labor turnover rates for your firm? If so, what is your monthly rate? Are your labor turnover rates in your quarries or mines greater than they are in your manufacturing establishments? Why? 246 15. 16. 17. 18. 19. 20. 22. 23. 24. 25. 26. 27. 28. 29. 247 Do you keep records of accident rates in your processing plants and in your quarries? Do you maintain absenteeism records of employees? According to all the data I have found, mine and quarry workers in a given industry average a higher weekly rate of pay than do workers in mineral manufacturing establishments. Please give me your opinion as to why this is true. Do you make periodic use of cost accounting for your different pro- ducts and for your different processing operations? Do you find that your firm cannot export its products into Canada as cheaply as the Canadians can ship a competing product into the United States? If so, why is this true? Do you find utility rates a major burden in your overhead expenses? Do you find taxes a major burden? If so, which taxes are the heavi- est burden for you? Do you plan to institute in the future any type of process or ma- chinery which will speed up your output or reduce your costs of production? What factors tend to make it difficult to institute new methods or new machinery into your extraction and processing establishments? (For example, finance, reluctance of labor, etc.) What percentage of your product or products is/are shipped by rail- road? How far do you normally ship by truck? Have you ever con- sidered using fishy-back transport to the Gulf Coast or West Coast of the United States? Do you already use this method? Wbuld a Champlain waterway reduce your shipment costs and open up new markets to you? Do you presently have a program of core drilling and exploration for new raw material reserves for future use? Do you have difficulty obtaining loans from Vermont banks? would you be willing to borrow capital in order to expand your busi- ness plant or to increase your production capacity? Wbuld you be willing to obtain equity capital by incorporating and selling stocks? Have you ever considered amalgamating with other producers in your industry so that you might have a greater amount of working capital and flexibility? 30. 31. 32. 33- 34. 35- 248 Are you familiar with the activities of the Vermont Development Credit Corp.? Have you ever applied for a loan from the Small Business Administration? Are you familiar with the technical and advisory program of the Small Business Administration? Are you able to maintain stock reserves at a level which allows you to cover sales when customers are in a hurry? Do you feel that a minerals experiment station or laboratory could be beneficial to Vermont's mineral producers if it had as its pur- pose the development of new uses for the state's various minerals and the development of techniques for waste utilization? If not, why? 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T., Vice President, Vermont Marble Company, Proctor, Vermont. December 6, 1963. Iiumphreys, H. 8., Plant Superintendent, White Pigment Corporation (Branch of Vermont Marble Company). Florence, Vermont. October 14, 1963. idrordan, Louis, Geologist, Ruberoid Company, Eden iills, Vermont. October 28, 1963. c3"uda, Steven, Plant Manager, Ulse & Perojo Granite Company, Barre, Vermont. July 20, 1964. ~I D. C. February 18, 1961+. Brown, M. Dwight, Marshall 8: Brown, Architects & Engineers, Kansas City, Missouri. June 5, 1961;. Brown, V. P., Assistant Vice President--Traffic, Great Northern Railway, St. Paul, Minnesota. April 10, 1961+. Browne, E. Broadus, Director, College Experiment Station, The University of Georgia, Athens, Georgia. February 6, 1961}. Buck, W. Keith, Chief, Mineral Resources Division, Department of Mines and Technical Surveys, Ottawa, Canada. February 11, 1961+; May 21, 1964. Burbank, Roger A., Town Clerk, Johnson, Vermont. Novenber 28, 1964. Chamber of Commerce, Quincy, Massachusetts. December [lZ , 19611». City Collector, Carthage, Missouri. November 30, 1961+. Conklin, Maxwell R., Chief, Industry Division, Bureau of the Census, U.S. Department of Commerce, Washington, D. C. February 20, 1961+; June 17, 1964. Conway, John A., State Supervisor, Bureau of Apprenticeship and Training, U.S. Department of Labor, Burlington, Vermont. March 20, 1961+. Corskie, John C., Assistant Vice President, Chittenden Trust Company, Montpelier, Vermont. December 3, 19611». Cote, Joseph E. A., Commissioner, Employment Security Commission, Augusta, Maine. August 5, 1964. Cotter, Perry (3., Division of Minerals, U.S. Bureau of Mines, Washington, D. C. May 15, 1964; July 17, 1961+. 265 Coxon, R. H., Assistant General Freight Agent, Montpelier and Barre Railroad Company, Barre, Vermont. April 9, 196i}; April 22, 1961;; Jilly 27’ 19640 Crosby, Goodwin E., E. C. Crosby 8c Sons, Danby, Vermont. February 1;, 1964. Dean, Robert C., Perry, Shaw, Hepburn and Dean, Boston, Massachusetts. March 9, 1964. Deccereau, Leo P., City Clerk and Treasurer, Winooski, Vermont. November 30, 1961+. Department of Finance, Knoxville, Tennessee. November 30, 196i}. Dickey, S. W., Vice President, First National Bank, North Bennington, Vermont. December 4, 1961+. Dillon, Ann, Director of Statistical Service, Tennessee Department of Public Health, Nashville, Tennessee. December 10, 1961+. Dixon, William R., Division of Data Processing, Pennsylvania Department of Health, Harrisburg, Pennsylvania. December 7, 1964. Dorman, Robert 0., Chief, Division of Employment Statistics, U.S. Depart- ment of Labor, Washington, D. C. July 13, 1964. Doucette, Edward B., Alonzo J. Harriman Associates, Inc., Auburn, Maine. March 2, 1964. Douglass, M. A., Treasurer, Sterling Trust Comany, Johnson, Vermont. November 25, 1964. Ede, Francis H. 3., Chamber of Commerce, Pen Argyl, Pennsylvania. Decanber 14, 1961+. Ettl Studios, Inc., Ettl Art Center, Glenville, Connecticut. March [5], 1961+. Farrington, H. F., Highway Planning Engineer, Vermont Department of Highways, Montpelier, Vermont. December 21, 1964: November 27, 1961+. Feitel, Arthur, Andry & Feitel, New Orleans, Louisiana. February [2’2] , 1964. Felt, D. P., Manager-Freight Rates, Boston and Maine Railroad, Boston, Massachusetts. April 9, 196+. Ferris, Cyrus Y., Chief Engineer, Rock of Ages Corporation, Barre, Vermont. April 28, 1961+; Decmber 2, 196% 266 Fields, Joe C., Director, Tax Division, Department of Revenue, Nashville, Tennessee. August 4, 19614». Fletcher, R. Andrew, Treasurer, H. E. Fletcher Co., West Chelmsford, Massachusetts. May 11, 1964. Flint, Harrison L., Extension Service, University of Vermont, Burlington, Vermont. April 27, 1961+. Foster, F. E., Executive Vice President, American Monument Association, Inc., Olean, New York. March 25, 1964. Fournier, Maurille J., Business Agent, Granite Cutters' International Association of America, Barre, Vermont. July 7, 1964. Fraser, Albert A., Secretary of the Vermont Apprenticeship Council, Mont- pelier, Vermont. February 21, 1964; March 6, 1964. Gauthier, Laurence W., Municipal Tax Consultant, Department of Taxes, Montpelier, Vermont. July 2, 1964. Chief of Property Taxes, Department of Taxes, Montpelier, Vermont. December 2, 1961+. Gaylord, Frank C., Sculptor, Barre, Vermont. February 16, 1961+. Gudger, Bonnie, City Clerk, Chatsworth, Georgia. December l, 1964. Hallberg, Curtis A., Director of finalisation, Milbank, South Dakota. December 1, 1964. Harding, A., Treasurer, Northfield Trust Company, Northfield, Vermont. November 26, 1961+. Harris, Walton Y., Promotion Specialist, Elberton Granite Association, Inc., Elberton, Georgia. March 19, 1961+. Haver, Ralph B., Haver, Nunn and Jensen, Architects, Phoenix, Arizona. February 19. 1961+- Hedrick, C. W., Ralston Purina Company, St. Johnsbury, Vermont, February 5, 1964. Horne, James D., Secretary, Atlas Granite Comparv, Inc., Elberton, Georgia. March 13, 19615. Ide, Richard E., E.T. 8|: H.K. Ide, Inc., St. Johnsbury, Vermont. February l+, 1961+. Indra, RaJa R., Duographer, Michigan Department of Health, Lansing, Michigan. December 2, 196“. Johnson, Meet H., State Tax Assessor, Bureau of Taxation, Augusta, Maine. August 3, 1961}. 267 Jones, R. R., Assistant Treasurer and Manager, Proctor Trust Company, Poultney, Vermont. December 4, 1964. Kelly, William H., The Leonard Granite Company, Chambersburg, Pennsylvania. March 25, 1964. Krantz, B. A., Extension Soils Specialist, Agricultural Extension Ser- vice, University of California at Davis, California. April 16, 196“. ' Kupferer, H. M., Vice President, Green Mountain Marble Company, West Rutland, Vermont. Decenber 16, 1964. Ladd, Gordon H., Chief Research 8: Statistics Department of Employment Security, Montpelier, Vermont. October 25, 1963; February 24, l964; June 29, 1964. Landry, C. W., Manager, Crosby Milling Company, Brattleboro, Vermont. February 18, 1964. Lyndes, Milton V., General Manager, The Barre Granite Association, Barre, Vermont. February 19, 1964:.June l, 1964. McClay, Arch, Division Sales Manager, Erie Lackawanna Railroad Comparw, Nazareth, Pennsylvania. February 27. 1964. Martin, William P., Head, Department of Soil Science, University of Minne- sota, St. Paul, Minnesota. February 10, 1964. Mayette, J. F., Chief of Tariff Bureau, St. Johnsbury 8: Lamoille County Railroad, Morrisville, Vermont. April 7, 1964. Milford, Murry H., Assistant Professor, Department of Agronomy, Cornell University, Ithaca, New York. March 2, 1964. Mix, Glenn C., President, E. W. Bailey 8: Company. Inc., Montpelier, Vermont. February 13, 1964. Moore, Allen 0., Treasurer, Vermont Kaolin Corporation, Bristol, Vermont. June 1, 1964; August 18, 1964. Morris, Gordon W., Branch Manager, Small Business Administration, Mont- pelier, Vermont. April 21, 1964. Mullen, W. F., Executive Director, Pennsylvania Slate Producers Guild, Pen Aral, Pennsylvania. February 12, 1964. Nashold, R. D., Director, Statistical Services, Wisconsin State Board of Health, Madison, Wisconsin. November 25, 1964. Neiles, James, Freight Agent, Delaware and Hudson Railroad Corporation, West Rutland, Vermont. November 17, 1964. 268 Noonan, Thomas J ., Regional Director, Small Business Administration, Boston, Massachusetts. June 11, 1964. Olliver, Ralph, City Treasurer, Barre, Vermont. November 30, 1964. Olson, Edward, President, Clarendon 8: Pittsford Railroad Company, Proctor, Vermont. November 27, 1964. Parker, John M., Professor-in-Charge, Geological Engineering, North Carolina State of the University of North Carolina, Raleigh, North Carolina. March 3, 1964. Peitler, William, General President, International Association of Marble, Slate, and Stone Polishers, Rubbers and Sawyers, Tile and Marble Setters Helpers, Marble Mosaic and Terrazzo Workers Helpers, Waslfington, D. C. August 5, 1964. Podskalny, Irene A., Adams Granite Company, Inc., Barre, Vermont. May 27, Prince, A. B., Soil Chemist, Department ongronomy, University of New Hampshire, Durham, New Hampshire. February 7. 1964. Ramler, Frank, Auditor of Stearns County, St. Cloud, Minnesota. November 30, 1964. Ray Churchill‘s Truck Terminal. Barre, Vermont. May [21] , 1964. Reynolds, B. V., General Freight Traffic Manager, The Texas and Pacific Railway Company, Dallas, Texas. April 10, 1964. Richardson, William C., Freight Traffic Manager, Southern Railway System, Washington, D. C. April 15, 1964. Roepke, Howard G., Professor of Geography, Department of Geograplw, University of Illinois, Urbana, Illinois. December 2, 1964. Rowen, Mason V., Assistant Vice President, Citizens Savings Bank & Trust Comparw, St. Johnsbury, Vermont. Decmber 4, 1964. Sabin, G. N., Assistant Vice President--Freight Rates, The New York, New Haven, and Hartford Railroad Company, New Haven, Connecticut. April 6, 1964; Decuber 10, 1964. Sadik, M. K., Research Assistant, Department of Soil and Crop Sciences, Texas A a. M University, College Station, Texas. March 10, 1964. Sales, Phillip N., Chemical Engineer, Minerals Research Laboratory, North Carolina State College of the University of North Carolina, Asheville, North Carolina. March 6, 1964. 269 Schill, Robert E., Vice President and Assistant to the President of the Central Vermont Public Service Corporation, Rutland, Vermont. March 26, 1964. Schroeder, Henry J., Assistant Vice President, Rates and Divisions, Chicago and North Western Railway Company, Chicago, Illinois. April 14, 1964. Sculpture House, New York, New York. March 2, 1964. Simpson, Thomas A., Chief, Economic Geology Division, Geological Survey of Alabama, University, Alabama. May 4, 196M. Smith, Frederick P., President, Burlington Savings Bank, Burlington, Vermont. November 25, 1964. Smith, Harold H., City Auditor, Findlay, Ohio. December l7, 1964. Sparks, Robert M., Chief, Business and Industrial Development, Maryland Department of Economic Development, Annapolis, Maryland. December 9, I964. Stannard, George, President, First National Bank, Fair Haven, Vermont. December 15, I964. Stansbury, H. C., Director, Department of Tax Research, Raleigh, North Carolina. December 15, 1964. Stark, Howard N., Vice President, The Vermont Associated Lime Industries, Inc., Winooski, Vermont. March 5, 1965. State Tax Office, Harrisburg, Pennsylvania. August [4], 1964. Steward, Harold D., Steward-Skinner Associates, Miami, Florida. March 9, 1964. Stillings, Ruth L., Secretary to Roland R. Vautour, Commissioner of the Vermont Development Department, Montpelier, Vermont. November 27, 1963. Stockinger, E. L., The Stockinger Company, St. Cloud, Minnesota. March 24, 1964. Storey, Emerson‘w., Research Analyst, Minnesota State Department of Health, Saint Paul, Minnesota. December 2, 196M. *Tetzlaff, Donald H., Director and Clerk, Vermont Development Credit Corporation, Montpelier, Vermont. June 22, 1964. IThompson, R. E., Assistant Manager--Freight Rates, St. Louis-San Francisco Railway Company, St. Louis, Missouri. April 15, l964. 270 Town Clerk and Treasurer, Swanton, Vermont. November 28, 1964. Town Office, Monson, Maine. November 30, 1964. Town Office and Village, Proctor, Vermont. November 30, 1964. Town Offices, Fair Haven, Vermont. Novanber 30, 1964. Town Treasurer, West Rutland, Vennont. Novanber 30, 1961+. Vautour, Roland R., Commissioner, Vermont Development Department, Mont- pelier, Vermont. February 11, 1961+. Voorhees, Grant W., Architects Associated, Des Moines, Iowa. February 28, 1964. Wall, Frank, Vice President, Kelley Construction, Inc., Barre, Vermont. February 21+, 1964. Weber, Christopher A., President, The Rutland County Bank, Rutland, Vermont. December l, 1964. Welch, Dale E., Statistican II, Maine State Department of Health and Welfare, Augusta, Maine. December 1, 1961+. Wentworth, L. W., General Freight Traffic Manager, Bangor and Aroostook Railroad Company, Bangor, Maine. April 6, 1964. Weyker, L. M., Old Fox Agricultural Sales, Inc., East Providence, Rhode Island. February 11, 1964. Wilkinson, J. R., Stevens 8: Wilkinson, Atlanta, Georgia. March 6, 1961;. Wolfe, Jack D., President, Jack D. Wolfe, Inc., Brooklyn, New York. April 28, 1964. Wright, Earl 3., President, The Vermont Marble Savings Bank, Rutland, Vermont, December 1, 1964. 47 etc I). mummy/umWWW“