The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-02-19
NOT BRIGHT FOR BUTTE.
A Former Butte Man Gives Some In
side News About the Great
Copper Camp.
Booming Of Estimated Products
Injuring It's Prosperity and
Stock Values.
About the Anaconda Haggin still In Con-
trol--Jhc Elizabeth sad Other
Mines.

Mr.. Sally Raunheim. of New York, II Of
the best posted mining mon in this country,
who for several years was general manager
OF Colusa Copper works n mines, at
Butte, (now Boston a. Montana) under date
Of Feb. IA, writes an interesting letter to
the Engineering and Mining Journal OF
New York, on the evils Of booming esti-
mates OF production that injurs both cop
per stocks and copper prices. An important
feature OF his letter Ia his statement about
the productiyensss OF the big mines Of
Butte below a certain level, which would
seem to indicate that tho expense OF mining
these ores in the future, or when the upper
levels are wsrked out, will be much greater.
Here 10 what Mr.. Raunheim writes:
1T has been attempted several times to
boom the stock OF copper mining companies
by making entirely unwnrranted statements
OF an immense production having taken
place and by predicting still larger outputs,
assertions which were absolutely without
foundation and without any chance of be-
ing realized.
the purpose Of either selling mine above
its intrinsic value or to allow certain inter
ested parties to dispose Of shares which
they hold, it is forgotten that such wild
statements Of expected production have Il
tendency to friRhten consumers OF copper
on both sides OF the Atlantic; hence we sec
that to-day. even after the financial crisis
has passed, copper can DO bought three
cents per pound cheaper than three months
ago, thus rendering imaginary the pros
poets of profits on n real production. Boom
ing of stocks by such means can never be
made to harmonic with keeping up the
price Of the product at the same time.
Montana GO per cent. mates sold i'll
England several months ago at II q. 3D.;
now they only bring 9s. 3d.. or 70 per cent.
less. and Montana copper declined from Id
to 10 cents in this market.
1.-The contents OF tho special correspond
ence from Butte City, Mont. in your issue
of January 10th forms a striking %illustra-
ton Of the foregoing; SO does the figure OF
the Anaconda product for 1890 in your very
valuable statistics Of January Sd. The
copper, an increase on 1889 of $500. 900
pounds. / can hardly believe it. How can
this be possible, with a fire raging in the
Anaconda mine preventing any mining,
while it is Known that the bulk OF the ore
treated by the Anaconda smelters was taken
from the Anaconda and st. Lawrence mines,
which are connected?
During the largest part of the year not
one pound Of ore could be received from
these mines, and even at the present time
not work there. l know positively that
they take out from both the st. Lawrence
md Anaconda together only about one
hundred tons a day. although this is kept
secret from the public. The Chambers
Syndicate mines certainly are worked for
all they are worth, but they canno supply
more than one-half OF the former yield of
Anaconda and st. Lawrence; in fact, only
300 tons of ore daily.
"Yonr enthusiastic special correspondent,
after putting down the Anaconda company
for treating $500 tons OF ore per Gay,
speaks of a further increase of 1000 add
tional tons, after the upper Anaconda
smelling works would be completed. Easy
to write out figures, if it only could be
proven and shown whore all this ore is to
come FROM.
1.-The same must be said in regard to your
correspondents statement Of the Bogton Il
ontana company. II he had con-
fined himself to simply stating the dails
output Of 400 tons of ore, it would be all
right: but he must needs predict an increase
of additional 1000 tons for 1891, after com
pletion of the Great Falls smelling plant,
although this plant will not be completed
before 1892!
Consulting the report of 1890, by Mr..
Couch, the reliable superintendent of the
Boston d Montana, we find that he esti-
mates the possible annual output for the
next five or SIX years at 10000 tons of ore
from the Mountain View, $4,000 tons from
tho East and West Colusa, 10000 tons from
the Pennsylvania-equai to about 36O tons
per uUV. lleToIOFe, Cldllu Liub Jig DD5-
ton d Montana company will certainly not
increase its present output materially. il
neither intends or can do 30.
Zone should not lose sight of the fact
that, as proved by the Anaconda and other
Butte mines, the ores are gradually getting
poorer in copper contents rs depth is
reached. 1t 10 we'll known that the con-
tinuity of the ore bodies in tho Butte fssurt
veins has 80 far not been proved below Il
certain depth. In fact, the exploration Of
the two Butte mines, one n prominent sill
yer and the other n prominent copper mine
has not shown any ore bodies worth taking
out in the otherwise well defined vein mat.
ter below Il certain general level, and thu
depth in either of these two mines, where
the vein has become poor. corresponds witt
the general level referred to.
"Tha other mines in the district have
not experienced q large decrease in the ore
carrying capacity of their veins. is "a result,
OF their workings not having yet reached
the level which limited tho productive zons
in the two cases mentioned.
at all mounts to this, that while there
is by precedent no certainty AZ to wha'
further depth will disclose. there il certain
ly good cause to doubt the continuity of ore
bodies below said levels.
1.-The total for 1891, given rs capacity ant
production by your correspondent TO be
9,675 tons of copper ore per day, can safel,
be curtailed to 5000 tons, and this only
provided the Anaconda soon resumes pro.
duction, ind that the Butte a. Boston com.
pany increases its output to 900 tons a day
which it is able to do, and that the othe
copper mines keep up their production, o
which ] have no doubt. and always pro
vided that no accidents happen.
I'm fine, ! repeat again, unreliable. ex
aggerated statements will not only iniur
the value of the mining stocks in pnrticula
of the raw material produced. and thereb,
the prosperity of the mining district"
About tho Anaconda.
A correspondent in Butte. writes that tn
Anaconda has recently been shipping to it
smelter. from tine Montana Consolidate
mines, thirty five cars of ore per day; Syn
dictate mines, fifteen cars; Anaconda mine
fifteen cars, and st. Lawrence mine, TWEEN
ty-fve cars: total ninety cars. Ii ussi Il
ship, when in full blast. from ITO to IL
cars per day; it is now working at abou
two-thirds of its former capacity. 1t /
next to impossible that The Anaconda
pounds of copper last year, ms reported
Much of the time it had n grent deal o
trouble with the fire. and yer,
little copper WAS taken out o
tho Anaconda and 81. Lawrenc
mines. BY the new arrangement in regar,
TO the Anaconda mins-pnttlng it INTO
stock company, as has been reported III tn
papeis-5OO.U 900 shares of stock were issuet
nt $25 per share. The papers. however, d.
not state the bonde Indebtedness whicl