The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-05-19
THE GOLD AND SILVER,
Expert Testimony About the Values
Of the Metals in the Drum
Lummon Case
How tho Helena Assay Once
Fixes tho Charges ON
the Bullion.
Ds. Raymond, OF New York, Placed ON the
Stand by the Montana Companz,
Limited.

Nost Of the testimony yesterday forenoon
In the Drum Lummon litigation related TO
ths value Of gold and 'silvos and how II n
handled At tho United statoi assay office in
Helena. d.. Raymond. Of New York, vas
on the stand all the afternoon when tho
court room Was we'll allied to hsar the OK.
part testify. II. H. Davis, ohiss clerk Of
the United States assay office Ia Helena.
testified that no refining 10 done ~ the
ONCE and only gold bullion IL purchased.
All gold ID bnsed on the value Of $2O.67 u
fipe ounce and the deposits Of gold arc
Brought 10 the Office and assayed and the
Aneness arrived n. The charges them in
posed are ons-eiRhth Of ono per can't OF the
value. For example, take a deposit OF 500
The charge would bs 10 cents imposed for
Tho milling, stamping and ESSAY ing. Then
the next charge imposed would be \ deduc-
ton for the refining ut Philadelphia and
81 for the melting. unless tho deposit
exceeded 1000 ounces, then II would bs
ons-tenth Of one cent an ounce. But the
81 melting charge covers all bars that go
under 1000 ounces. Then the next charge
imposed 10 so much an ounce. If the fine
ness Is 700 or over it is four cents an ounce.
There is only ono other charge imposed,
which IL for the copper alloy to reduce it to
coin; that lie two cents m ounce for
ninety ninth Of the standard weight of the
deposit. On . deposit Of 800. to make the
iLlustration clear. the fist charge would be
one-eighth OF one per cent 18 cents.
Next would be the charge OF
81 for melting. The deposit
would weigh about five ounces. aud that
would be 20 cents. which would mako 81. 20
for that charge. Then the lowest charge
TO be imposed for the copper would be two
cents, 10 that the charges imposed on a
deposit Of 800 would be $1.35. Mr.. Davis
eaid the gold brought to the assay Office
from the Montana company ranged in fine-
cess from $50 to possibly GOO. According
to the assay office charges five ounces of
hns gold at $20.67 would be $1o3.35 {. The
nrst charge would be $l.2O. the five
at four cents An ounce. and two cents" for
the copper; the charges would be $1.35 de-
ducted from tho Geposit of $1O3. 35 would
lsavs the denosit 1902. The fixed charge
Of 81 is applied to five ounces as we'll -
900 ounces. Tho bullion was bronght from
900 or 700 ounces. Six hundred ounces
would be valued at $12, 4O2; the charges
$40. 60, which would leave the %depositor
$12. 361. SO. The witness on his cross-ex-
animation said silver bullion was not pur-
chased at the assay Office. He did not know
what part of the product of the Montana
company. limited. was sold at the assay
Office, and that none was sold at present.
The Office did handle the company's gold
bars for a while. but the witness had no
Idea what portion OF the product. About
two months z the purchases from the
Montana company closed. MI. Davis said
that whom the bullion falls below the Eov-
eInment STANDARD the miner usually sold IL
10 the banks or shipped it to a refinery and
had to pay the express charges. which are
about $3.50 per $1,000.
Joseph Chivers, tho teller at the Mer.
chants National bank. testified that his
bank usually bought the silver sent in to
the Helena assay office. The express. charge
on silver bullion from Helena to New York
is I'll per Thousand value under eighty
il is II cents q pound in exosss. The prices
of refining silver is three cents an ounce;
that is what tho bank charges. A bar COM
posed mostly OF silver ia, called silver bull
lion.
Rossitsr w. Raymond. Of Brooklyn, N.
tana company limited. He. said he was .
mining engineer and graduated at tho
BROOKLYN Polytechnic institute In 1858. He
Immediately N to Europe and studied
three years In the university Of Heidelberg,
the Polytechnic school of Munich and tho
Mining academy OF Freiber0 In 6axony.
He returned to America and served several
veats In the army and began the practices
of his profession In the fall of 1863, and
has been practising constantly for the last
thirty years. From 1868 to 1876 he was
United States commissioner OF mining for
the states and territories In and vast Of the
Rocky mountains. and az suoh Travelled for
some months every year and spent q great
deal of time In examining all the mining |
districts of the Pacific coast and the Rocky
mountains and published q book giving the
results. From 1870 for about SIX Or esvsn
years he was 4 member of the faculty and
noA-resident professor Al Lafayette COL
lege. Pennsylvania, in the Pardee scientific
school. The subject Of his lectures was
usually every year on ore deposits. From
1866 to 1889 he was editor Of the Engineer
ing and Mining Journal, in New York. and
is now connected with the paper. but not as
editor. He vas president Of the American
Of Mining EnRiheers from 1871 to
1874, and IL the editor of all it's publications,
and 10 tho only American who 10 an honor
airy member Of the civil engineers OF
France. Tho witness said he had examined
mines In every mining state and territory
in the United States except Alaaka. Hs
drst went to Marysville in April. 1889, to
examine the Drum Lummon mine, and q
little later made another examination.