The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-07

the question Of q doubt whether or not
the Utah smelters will join with the
Colorado, Omaha and Kansas City
smelters in the formation of smelters'
trust which will have for its objects the
creation of a clearing house and an
increase in working charges. This is
about the time contracts for the bust
ness of the coming year are made, the
greater majority of the agreements go
ing out Of effect by limitation on the
first of the year and in consequence the
producers are very anxious to get onto
the true inWardneSS of the negotiations
which have been on for some time past
between the local and outside smelling
people. There is but little, if any, OBJ
lection to the clearing house plan, but
it is the probable advance in the charges
which is bothering the miners.
When seen yesterday afternoon and
questioned on the subject A Hanauer,
Jr., stated thai there was no probability
of a combination being effected for the
purpose of increasing the working
charges Of ore, if for no other reason
than that the producers would not
stand it. The latter are now selling
their ores in many instances at almost a
Joss and to ask them to submit in a
-7elh further reduction in the receipts
from sales Of ores would be suicidal.
las a matter of fact" said Mr. Han
auer, 1.-The competition for the desirable
ores which are not under contract is
very marked and in a number of cases
a premium has been paid on silicious
ores of which class of rock all of the
smelterS are short. Contracts are now
being made for the new year and after
the smelling charges have once been
fixed they can not be changed at the
whim and fancy of the smelling COM
pdnies." Mr.. Hanauer estimates that
fully 80 per cent of the ores produced
in this territory are under contract and
the contracts to cover the output of the
many properties will nearly ali be
drawn up by the first of the year, as
but few expire later than January.
/ 1t seems that in Colorado the, trust
Sor combine, is getting in it's work. and
THE reports received from Denver are to
the effect that the Utah smelters have
been and are being invited to enter the
compact. Some days ago Mr.. Hanauar
went east TO Denver and Omoha on
special business and he may have a
meeting with the outside smelling men
before his return, either at Omaha or
Denver. The Rocky Mountain News
mas discovered some of the methods of
$he trust and gives the following ac-
douht Of an attempt on the part of the
N-C4lAbAAlS " imp lulO line a 1Scalcltrant
smelling company:
Z When the News a few DAVIS ago uuJ,
Hfsaed a communication from the Hon.
y. 5. Thomas regarding the danger
That is threatening the miners of Colo
rado from a smelters' trust, few be
IeVed that there was any reason to
Tear, and the smelter trust, which has
often been threatened, and has never
naterlaaized is generally regarded as a
Fhr7cr lNrare Of
only good to frighten people. From
several sources, however, it is learned
that the trust really exists and is only
waiting patiently until it is well
formed, to raise the smelling rates on
all classes of ore. There is one large
smelter in Colorado yet that is not in
the combine, and the trust is struggling
10 force it into the ring. That smelter
is the Union Smelling company, of
Leadville, which threatens to give the
combine no end Of trouble This
smelter is one OF the largest and best
equipped shelters in the state, and
having recently spent considerable
money in improvements, is in position
to compete with the older smelters.
L. S. Smith, president of the Union
company, was seen yesterday by a
News reporter and asked if it was true
that the combine was inauguratfng a
Yes, it is something like a. boycott
The two Aspen samplers. Taylor &
BTunton's and the Public Sampling
works, have refused to sample our ores.
They have either to let our trade go or
lcse all the rest of their business, so, of
course, they let us CO.
Has the combine made any trouble
for you elsewhere?'
"Only at Cripple Creek they have
been trying to head us off. but they
will have a hard time of it. They
want to either force us to the wall or
into the combine, and they will do
neither. We have spent about 5000
lately in fixing up our plant, and we
are now all under one roof and the
only smelter \ the state in that con-
dition. We C.. do business all around
Invitation to Join.
What do you know about the COM
lbine. Mr.. Smith,"
Not a great deal We had an invi-
tation to go in, but because we did not
go around begging for terms, the trust
is going to discipline US little. / think
that we can stand it. If necessary we
will put in our own samplers where
we need them, and we can always get
the ore we need. / don't know who the
officers of the combine are, but they
meet in the office of the Philadelphia
Refining company in the Equitable
building. The clearing house feature
of the scheme is a good one, and if
that was all there was TO it we would
be in favor Of it
What is the clearing house fea-
ture?"
why, each smelter registers all of
its contracts for ore in the trust clear
ing house. The ores are delivered to
the clearing house and paid for and are
distributed to the different smelters in
such a way that each gets its share of
, the ore, but the classes of ore are so
distributed that the smelters are all
supplied with the kinds of ores they
need the most, so no smelter has to
shut down for want of a certain ore.
Under the old plan, if a smelter ran
short of a f'uxing ore, for instance, it
would have TO go on to the market and
auy it, and often would be compelled
to nay a fancy price or shut down, and
tho smelter would lose money in the
QEsration. The clearing house plan dis
ffsoater the different classes evenly"
viii Raise Rates Next.
HAS the trust attempted to raise
the rates yet?"
mo; it has not gotten that far yet.
but that is the main reason for the
combine 1t must first get ali the
smeiters in. The Utah shelters are out
yet, and we are the only one of any
account in this state that is out. Just
as soon as they can get things fixed
the plan is to raise the rates, and, OF
course, that will be g. little hard on
the producer. Just how they propose
TO make the rates Go not know. but
they will be advanced to a point where
the old style smelter can make a lit !
tile money. The modern smelter. like
ours, has the advantage now, and the
old smeiters cannot afford to throrr