Blackfoot news. (Blackfoot, Idaho) 1891-1902, 1898-01-22
THE SHELTERS COMBINE.


rangement.
There is. quite naturally, much Gu
ri0sity 10 know what has been decided
on at the recent meetings i'm Denver
and In New York of the representa-
lives Of the lead smelters. and it Is
quite as natural to assume, what is un-
questionabiy the fact, that the object
of the meetings has been TO better the
condition of the smelters. 1t is UNI
derstood, indeed, that they propose to
attain that end rather by avoiding
over-competition in some cases, and by
preventing losses In the marketing of
their products. than by any general adj
vances in smelling charges or any
general lowering in the prices paid for
ores.
The Engineering and Mining Jour
nal seeks not only to give the latest
and most accurate information con-
corning everything of interest to those
engaged in mining and metallurgy, but
il aims to promote as far as possible
the prosperity of these. We desire to
see the miners get full values for their
ores, and to do this il is essential that
the smelters must secure living smelt-
ing charges, otherwise capital would
abandon the field and the miners
would quickly find themselves in the
could impose even exorbitant charges
If they so desired. 1t is in every re-
spect to the interest of the miners to
have many independent and prosper
Gus shelters. the natural competition
between which will insure the pay
ment of fair prices for ores.
1t is well known that, owing to the
constantly falling prices of silver dur
ing the past five years and the sharp
competition for ores which resulted
from the great number and capacity
of smelling plants, the smelters have
been far from prosperous; indeed, we
speak adyisedly when we say they
have lost millions of dollars during the
past few years through the fall in the
value of silver alone.
The smelter has to carry the metals
he produces on an average fully ninety
/ days, for he has TO lay In large stocks
/ of ores, which must be paid for before
they are smelted, and he has to carry
the final metals until they can be mar
ketable If the market declines. he
| loses; if it advances, he gains. But the
risks in these fluctuations must be
/ covered by a margin finally coming
/ out of the price paid the miner for his
ores. Otherwise the smelter goes into
/ liquidation or sells out to a concern
1 with more capital. 1t is, therefore. to
/ the interest of the miner and smelter
/ alike that there should be as little un
certainty as possible in the business.
If the miner could wait until the
metal could be marketed, he would
receive the full value of his ore less
1 a smelling charge which would be
| moderate, provided there were enough
solvent smelters to maintain competi
ton In the business. Since the miner
| cannot wait for the marketing of the
| metals he must pay the smelter fol
| taking the risk of the market. and the
less that risk is the less will the minel
have TO pay for assuming it. If ths
smelter could ascertain what the mar
ket price of his metals would be tive
or three months in advance he would
eliminate this risk and could on tn,
average pay better prices for his ores
We might suggest. therefore, that th'
interests of both miners and smelter
would be served by some arrangement
under which the purchase price of tn
ores would be based on the marke
price of the metals two or three months
later. Whether this could be arrives
at by having the prices based on tn,
quotations of sixty or ninety day ''fu
lures" or by providing a specific safet.
margin on the price of ore. or by an in
surance fund to protect the shelter
against the risks of fluctuations in tn
market. may be open to discussion
but 1T is unquestionably to the inter
ests of the miners that the smeltin
business should be sufficiently profit
able to attract capital. and that
should be as free from the gamblin
risk of market fluctuations as possible
The miners generally understand this
and we believe they are ready to &C
operate in any fair arrangement b
which risks in the business can b
avoided.-Engineerin and Minin
Journal.