| Show SILVR WiLLBE FORCED Primary Object the Latest Smelter ConsolidationGu genheims Talk Freely of the Objects of the New Combination More Work to Be Done in Colorado and Utah Markets for LowGrade Ores The organization of tho American Smelting company In wnich the American Smelting and Refining company com-pany has been merged with the Gupr genheim Interests and which will control con-trol between between 77 and 80 percent per-cent of the silver output of the world was announced lasb night by Simon and Daniel Guggenheim who arrived in the city yesterday and are registered regis-tered at the Brown Palace hotel JB W Nash president of the old company will retain his position andI the governing body will consist of an executive board of which Daniel Guggenheim Gug-genheim will bo the chairmen The other members of the executive board will be Gov Grant Dennis Sheedy Anton Eilcrs August R Meyer B Scwall E W Nash and M Guggenheims Guggen-heims sons The Messrs Guggenheim gave out the following statement last night Our business has not been absorbed There has been a merging of the secur ities We had considered for a lonir time the proposition to Join our company com-pany with the other and finally decided that we could work out bigger prob lems to better advantage doubly than singly In the handling of metals the miner will be enabled to get the full prices that are paid and what benefits the miner Is of advantage to the smelter smelt-er We have kept up the price of lead and we propose to do the same with silver In the course of time we hope to handle silver as intelligently as we have Jointly treated lead HOW SILVER IS KEPT DOWN Today silver is scientifically and secretly bought by four brokers In i London who stand by each other and the buyer The seller sells his pro duct from day to day and Is at the mercy of the brokers This can and will be changed as soon as the thing can be rounded up We intend pursuing pur-suing the same liberal policy toward the miners that the Guggenheims have pursued in the past and before enter lag upon the merging with the Amer lean people a number of discussions were held In this regard Wo were glad to learn that this policy fully accords with their views Some few years ago JRussIa bought 00000000 ounces of silver In one year and it was not known by any of the sellers that that country was quietly absorbing the product Last year In dia bought 60000000 ounces and silver was not raised In price The reason for this condition of affairs lies in the conflict of interests that have existed heretofore The American Smelting company now controls the silver output of South America Central America British Co lumbia Mexico and the United States which Is nearly SO per cent of the out put of the world We did not enter this merging with the other company because we expected an Increase of profits but because we are satisfied that this Industry can be made one of the best industrials in existence under proper and Just administrations We are not dependent on the times like other industrials our business goes on In poor as well as good times The profits that M Guggenheims Sons will make finally will be by the increase of the value of their securities In the I smelter company Another great advantage ad-vantage that will accrue by the merg lag will be In the establishing at the different smelter of the beat features contained In each S SO We believe that Instead of the smelter company being menace to the country It will be an advantage In the first place the receipts of the railroad rail-road companies will bo Increased by an increase of freight In and out To the mummer It will mean an enormous advantage ad-vantage It will Increase the produce of his ores because under such a large operation as this will be the smelters can assist themlncr to mine his low grade material which Ije now oftentimes often-times allows to remain in the mine We believe the smelter is in a sense to the miner what the banker is The banker supplies him when in need of fundo and the smelter should supply I him with lov treatment charges We i ourselves are large mine owners and 1 large stockholders In the Guggenheim j Exploration company which Is a mining I min-ing concern None of these interests will be merged In the American Smelting Smelt-ing company EXPERTS NOT CROWDED OUT We have been Investigating the field an to the men In our employ as it was intimated that by the new arrangement ar-rangement there would be a surplus of talent That is not so On the contrary con-trary there are too few We have I room for all and more Wo mean to I push our young men to the front and give them a show as this Is a busIness that will be here when we are all old and they will eventually have charge of the concern Our firm has arrangements arrange-ments with the school of mines ojC Columbia college tho Massachusetts Institute of Technology and the School of Mines at Golden by which many oC their young men arc sent to us at the completion of their courses We have graduates of the schools all over the t world We have been getting information L from large institutions like the Krupp works in Germany concerning the methods of caring for their employees We Intend to apply the best of these methods to the men In our employ It L is our intention to Improve thescondl ion of the men and we hope to estab Ifsh libraries and proper homes for them We do not claim to be philan thropists but believo that an Improved I condition of the men In our employ cannot but work an advantage to us There is no doubt that the thrifty la borers will In time become Investors In the securities of the company and I that is what we want GREATEST INTERESTS ARE IN COLORADO AND UTAH We realize that the greatest Interest Inter-est the company has Is In Colorado and I Utah In Colorado we have nine smelters smelt-ers and it la our purpose to Increase them in size and to build new ones whenever It Is deemed advisable One of the conditions of the negotiations was that ample capital for this purpose pur-pose and for all emergencies that should arise must be on hand There will be a cash working capital of from 20000000 to 52f5000000 which will enable en-able us to carry out these policies Concerning the position of chairman of the executive board It has been stared on good authority that Daniel 1 Guggenheim is to have the place lie preferred not to confirm the report last night as the selection has not yet been made The makeup of the ex tI ccutlve board Is especially pleasing to the Guggenheim brothers as the mom hers arc all practical mining men 1 The reported establishing of large pyrltlc smelters In this State does noc concern the officers of the new company com-pany They say that only under tho most favorable conditions can these smelters be worked at a profit The new company will be capitalized 1 at 5100000000 of which the Guggen helEna will control between 38000000 and 40000000 A meeting of the stock holders will be held February 16th In New York to ratify the merging of the two interests Denver Republican |
