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Show Government Will Purchase Output of Silver Mines (. , . - Apptal Sent to Senator 8 moot Results Re-sults In Step Which Will Keep Up Operations Washington, Aug., 10. Senator Iteed Smoot announced today there would not be nny necessity for tho Utah silver mlncB closing on nccount of the war situation In Europe. After Af-ter a conference with Franklin K. Lane, secretary of the Interior, and the director of tho bureau of mines It was announced that tho government officials would make arrangements with the smelters on Wednesday to purchase the output Of silver. Silver -mines of tho west will be kept open despite the demoralization of the metals market on account of the world's war In Europe. The gov-ernmenl gov-ernmenl has come to the rescue of the western mines and will purchase Bllver through the smelters, although tho mlulng men do not know at this time whether they are to receive 51 1-2 cents an ounce, tho last day's quotation on which the market was open, or whether tho government will tako the market price for some days prior to tho outbreak.of the European troubles and reach nn average price to be paid for silver.! The announce ment that tho United States treasury treas-ury department through tho director of the mint is making arrangements to tako tho product ot tho silver mines was mado hi a telegram from United States Senator Iteed Smoot to John Dcrn. On Saturday when It Beemcd that nothing could be done to prevent tho closing of the silver mines ot tho state Mr. Derh took tho matter UP by wire with Senator Smoot. Ar' rangements .had been made by Mr. Dcrn who Is a", the head of tho Mine Oepratlng company which holds the lease on tho Ontario property at Park City, to closo tho mines Immediate as tile smelters announced they would pay only 23 cents an ounco for sll ver .settlements on the deferred payments pay-ments to bo mado at b later date when the European crisis hwt pnssec and metal quotations are being mado. Mr. Dern thought tho govornmen. ought to intervene In tho matter at the sliver mines ot tho west must bt kept running In order that the oner ators could realize on their invest ments and so that the miners would not bo thrown out of employment. He addressed the following telegram tt Senator Smoot: Hon. Iteed Smoot, Washington: Silver market demoralized and usual avenues ot disposition closed. Gov-eminent Gov-eminent assay office la restricted In accepting silver except In the proportion pro-portion of one-tenth silver to nine-tenths nine-tenths gold. We produce silver bullion bul-lion 975 fine. Cannot assay office reg ulatlons in this respect be waived temporarily so that we can sell to government assay office In Salt Lake or can mint bo authorized to purch- aso 25,000,000, ounces ot silver? Western Wes-tern sliver mines jeopardized. Mus', closo down our Park City mine, 250 men on payroll, unless some relief w offered as above and. many others aro In samo predicament. JOHN DERN. He received tho following repu from Senator Smoot yesterday: Senator's Reply John Dcrn, Salt Lake: Director of Mint Roberts authorizes mo to stnU I that Government will roako arrangement arrange-ment with smelters that will enable them to purchase silver b In the past. No necessity ot closing the ,inan. Letter will follow. TIEED SMOOT. "From tho telegram from Senator Smoot I tako It that the government will take all silver offered It." Mr Dern. "Tho only thing which worries mo at this time Aether the government will pay the last day's quotation which was low, or whether It will average the muta tions for several dhys prior to the European outbreak. I think the latter lat-ter would bo more fair and the government gov-ernment should not seek to take advantage ad-vantage of cheap silver at this time. We will not closo the mines slnco receiving re-ceiving this telegram rrom Senator Smoot, but will go ahead and op-prate. |