Show MINE OWNERS SEE NEED OF ORGANIZING Arne Ame ican Ame-ican ican Mining Congress Committee on Smelter Situation O ONE E SURE C CURE RE FOR EVILS I on Only Iy Th Through rough Independent IndependentS S Are re Conditions Made Bearable S I 15 of re state and interstate inter t state Mate of or mine owners and anil op operators orators and nd the building ot of Independent Inde Inde- pendent smelters where necessary arc arck k tha tho remedies suggested by the committee com corn J appointed by bt tho American mr Sti Mining Mining- con congress to Investigate the re rel relations re- re S. S l lations tIon and grievances gorIc of oro ore producer er and custom smelters The rho com com- Ck report which was wat- compiled and written by If n S S. Joseph and Georgo V. WI niter Hiler the thc Utah Utah members I exhaustively el of or tho the smelting situation k t handling the tho subject with eminent f j t 3 both sides Tho tt I tea features lures n of tho report are arc too extended OX- OX tended for or reproduction in a n. 3 por a It Il I Is sufficient to sn say ay tutt 1 after giving th the the thc benefit of 11 r all aU doubts in relation n to the cost costor I I. I of or cc assembling nl and tr treating f tho ho different differ differ- 1 cl CUt ent t kinds of or ores In the tho proportions proportion r required 11 for Cor economical handling IlI it Il itIs I Is hi found that the tho variance In rates in I i different localities I Is so great ns no to render It Unquestionable that many op- op oPI I orator aro unfairly treated I A feature of or the thc r port especially In Interesting at this thI time is that conI conditions con con- I In at nl the tho time ElmO th the tho data I i was Wt R gathered were found to be he the tho most favorable to tho ho producer exist exist- 1 bib irig nn anywhere This is attributed to tf Eli thu fact act that a a number of or Independent rl il dent nt smelting plants which were built h by private private- concerns for the purpose of of'S II S 'S treating the ores orl's from their own mines mineR i were tere a afterwards enlarged to handle I c custom business s Th Those These e plants am are no now I I formidable rivals of 01 the trust 1 i S tl the stimulus of competition tile the smelting smelt smelt- smelt smelt-j I ing ing- Industry in the Salt I hake ike valley I has lias od advanced commercially and technically cally to the tho extent that It is now no the them m most t Important smelting center in tho i J cst l nh Situation Changes Change In In the t few w short weeks that h have hc c elapsed d since the rep report rt ri was wnM written lh the situation has changed In the Salt Sail l rendering the thc findings of or ortt S th tt C committee C fully as applicable to toI I U 19 community as to 10 any other and andr Z r hf r n I nB moret more t Im h and urgent r. In that limo as a n rf result of or a n final decision t ins the tho smoke suit thio ho tho Ind Independent pe nt i plants alluded to have been closed l. l down leaving heaving tho the trust tho the solo sole oc occupant oc J I of the field And the trust has promptly taken advantage c of the situation situ situ- I ai iby attempting to tie tic up ore producers producers pro pro- I with long timo contracts pro pro-I In w which ich treatment charges b by manipulation 1 lation biron of or penalties and otherwise othen h have hc c In many cn cases es been actually trebled I Tho The complaints received and In gated b by tho the congress committee o lire are I t cH classified under tho the following heads I II 1 i Excessive deductions for Ok I smelting losses and anti for refining an and selling costs I I S S z 2 lIn Unsatisfactory settlements on ac- ac coun cO at arbitrary valuations placed b by 5 tile upon different S Z smelting smelling charges ir lr Arbitrary 4 and unfair lr rules governing gov gov- J ernin th the tho sampling and assaying gO 1 of ores 5 tactics to lo stifle stine and fOH forestal competition 4 nt rent Profit of II r- r It uIt Itis is 16 claimed b by m many ny imail proS producers pro pro- S i of ot ore that the large c producers j S ire given rIen a 1 er very unfair advantage over thorn hm In the Uw matter matHI of treatment t charges chars It Is Id also alo claimed that thu p. p J custom Inaugurated by bt at least on one of P the tho great smelting companies of or distributing dis Its Its- additional compensation to Cu its cs for faithful service ser during dur dur- ur- ur lag ing the preceding year r Is IH actuated b by ulterior motive matl which operates to tn the theS disadvantage o of or tho the producer When hen S S vo wo take tao into consideration tho ho fact that ono one of oC the great lt smelting companion com coin pai panion cs in hi its report Ort for Cor the tho year CLr ending end S in ing April 30 to showed that thal thc the profits profits' uton nn fin orl original exp expenditure of r. r some 0 or ol O were nr f in nail and that this wn was but a t h I Increase In percentage of ot Rain gain oln 11 over r the former year the Inquiry naturally nat I arises oR In th the minds of tho the in investigating in in- committee as ns to hiv this iv great eat accumulation of oC profit has been accomplished And AmI It J seems ms that the conclusion would arise In the tho minds of ol person that the smeltIng smelt smelt- In Ins Ing business Is Js wonderfully profitable I 01 or- orI I 19 15 conducted along lines of an which are not to be shar shared d IJ by I f or ore producers producer I S o 0 Chance Chan p for tor In other words tho the whole matter r a at to treatment char charges wi weights r moisture moisture- assays and md value o of differS differ differ- cut CIt hinds oC or metals of which tho the ore S 1 IH I. Po od ld and time nf or settlement is 15 absolute h In tile tho hands of the smelt smelt- I ert ond nd from their and there In Is no appeal S Naturally all nIl the copper produced JP It tho the States Is sold RoM b by 1 some ome I half dozen firms Th The Tho copper turn turned d' d doLl f out oL by lh thC smelting trust l Is sold b by thi United Metals Selling company a 0 firm which handles s more than one- one halt half of tho copper output of ot lh the coun coun- try This selling n company persistently persistent persistent- ly ly Jr refuses to furnish an any quotations r for publication The prices given Riven en out outto to th the public from da day to dL day arc are onI only I I I I R approximations ons made b by journalists who ho GO co through h the market and en endeavor endeavor en- en deavor or to get set from lh the parties at Interest in interest In- In terest an tin accurate opinion n. n No o ore orr producer can Call build his own smelter works and operate it at at a a. I profit without making provision for tor RU such suh h ores ors n as will ivill combine with his hi own to make n a good smelting mixture Some Somo producers prod who have ha contemplated such fuch a n step have havo found that tho the other producers have h been allured Into long longI contracts with the truo trulL arid anil that so carefully I have havo W these contracts been timed that not man many Important ones terminate during the same year clr that lh the ores needed by br him him- for mixing purposes have hare already ready con contracted to tho thC trust rust for tor some ome time in advance o. In Ill this respect the trust m must Sl bo ho given givon hon h on en credit for or its shrewd and adroit droit efforts eCo to forestall competition But ul it is complained d further th that t lr s 's from many man of ot the tho mill mill- II I i ing ji di districts lri oC fl the tho West Vest are ar dictated d 1 by th the ti of oC tho the sm smeltIng smelt lag Ing trust h that l s ar J p- p d 1 so n ai at to stifle competition from the outside c. c The matter of oC railroad freight rates however r. r I Is already ady receiving the the- attention of con congress rss and of various state le legislatures and nad wo we withhold further comment on the subject other than to advise the formation of ot local and state mine operators operators' nSf associations o for the purpose of or fighting this and oth other r U e evils The three p. p most mont important remedies s 1 suggested are I III Inter lOhsl Intervention on tho part of oC the United states government go Second Second InterventiOn Intervention b by wa way of state Ic legislation Third Third Intervention b by ol organization of mine owners wn r and anI operators throughout through through- bh- bh out the country co for the tho purpose of building operating and maintaining their own mills smelters along lines similar to those now employed In the operation of the great c smelting companies companies com corn panics which now COi control lol the treatment of ores In this cOl country Under the first remedy suggested Intervention on the tho part port of or the United States State gO government tho the committee doOH doCtu not feel like making nn any recommendation tion tron other than that th the American J Mining Min effort In it ita ing In congress u. u ute nrc o el C every power to convince the U United States government o df dt what we se believe to bj hi th he the ab absolute necessity of or better tuition and protection of or tho the mining in ln- ln tei of this country through n a bureau or department of oC mines and ml mining a I ng Und Under r tie the tho second remedy Inter Intel by wa way o of legislation on n account of the difficulty of nf securing state legislative o action in some of f tho till states we WC think that recommendation along this line would not notto le to advisable d at this time I I I Or Organization In Ii JI The Thc third remedy su suggested d Inter by organization o of mine own- own urn and operators operator ho however ocr seems to tous tous to tous us to bo lie entirely practicable and if It wisely wisch or organized and judiciously managed manal man man- al aged agLI will be he eminently satisfactory and we wo would respectfully n Sit Jt L About the tho legality of this thin remedy there can bo bru no question About hout its desirability It seems to lo us there can cano canI ho he o no rio question for tho the reputed dividends divi l earned b by the th I great groat rat smiting companies place their enterprises be beyond beyond be- be yond ond th th question of oC a doubt as successful sue suc nic business and financial And nd with this Idea In mind tho c committee Is disposed to discourage r age JC mine owners owner from rom contracting their output to any concern for such uch long lonE periods In advance that they thet will be unable to tn join with their friends In itt enterprises of or this kind wh whenever nC fr the time seems ripe Not ol a great many yours ago tho the thomine thomine mine owners and operators of ot lh the Cripple Creek Crock mining district became aware of the fact that thit t the a railroad charges for transportation were cero ex e cx- cx and they were entirely at tho the mercy o of certain railroads This leeto led lee led to an on Idea of ot building an af Independent road rond from Colorado Springs into th the l tAwn n o of Cripple Cre Creek lc traversing tra th the entire Cripple Crock Creek district as a mean menns of or nn an outlet for tor their or ores 9 and trans trans- of ot their fuel and other min mm- In ing supplies The road was isas built ant paid for tor or by the mine mino owners ovner and op torn and then began a bitter rat rate wa war which continued for tor seven sc months I It W was waa S Inaugurated by a n competing lino line t to drive the nf new W line out of at busIn business se However the new lino line survived and am I subs subsequently sold its holding to another I railroad company compan reserving for it Its stockholders contracts with tho the differ differ- I ant nt mine owners and operators which put pUl them beyond tho the possibility of paying pay pay- Ins Ine exorbitant rates in the future The road paid its o owners a Q good rood Interco and profit on art n their Investment 01 materially reduced e 1 their transportation rates and aw was as satisfactory in every even v r 1 J l particular I S |