The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-12-02
NO CHANCE FOR
LOW GRADE ORES
Problem Is Up to the SmeItel
Trust.
RAILROADS NOT TO BLAME
SHELTER TRUSTS PROFIT ON
FREIGHT CHARGE.

There is little prospect Of the Utah
railroads reducing the freight rates
on low-grade ores unless the smelters
! reduce treatment charges. The traffic
/ departments of both the Oregon Short
Line and the Rio Grande Western, it
/ is understood. have reached the con-
/ clusiOn that very little traffic would be
! added by a reduction in freight rates
/ as long as the American Smelling &
! Refining company keeps the treatment
/ charges up. As the smelter trust holds
1 out no hope of a reduction until the
new smelter at Murray is completed,
which viii not be before some time
next year perhaps as late as spring,
! the immediate outlook for q change
I is not bright.
The traffic managers of the Short
Line and the Rio Grande have been
collecting a vast amount of informa-
ton to aid them in dealing with the
loW-gTade ore question. They have
statistics on the amounts of low-grade
ores exposed in various mines in diff
ferent camps, the assay values, treat
n2ent charges and other details. They
have found, it is stated, that there are
undoubtedly vast amounts of low
grade ores in the different camps, but
that reduction in freight rates alone
would result simply in moving present
traffic at lower rates. The loW-grade
ore would stiil remain in the mines,
because Of the charges exacted by the
smeiter trust for treatment.
The railroads are ready to go half
way in helping the mine-owners solve
this problem, but freight is by NJ
means SO large an item in handling
most Of the Utah ores as is the smelter
charge. The rate on ores from Tintic
to Salt Lake, for example, is $3.50 a
ton. The treatment charges on TIntic
ores run as high as S14 or even more,
a ton. When the gross value of the
ore is perhaps S15, and the treatment
charge $14, a reduction of the freight
rate to even 81 a ton would not help
the situation any.
Railroads Not to Blame.
There is a disposition in certain
quarters to blame the railroads for
preventing this low-grade ore from
being moved" said a railroad man
yesterday. This is unfair II the
mine-owners win get after the smelter
company and secure a reduction in the
treatment charges, so that a reason
able reduction of freight rates is all
tiistt is necessary to bring about the
SHIPPING Of large amount of ore, they
viii find the railroads ready to make !
the reduction.
"A sliding scale of rates, based on
the values Of the ores, has been pro-
posed-raising the rates on the higher /
grade ores and cutting them on the /
lower grade cIes. This would be al I
right if the sme,ter company would do /
the same with treatment charges. The /
railroads would willingly take such a 1
step if the result meant the moving of /
enough more ore to pay. But the en- /
tire situation is up to the shelter /
trust
There is another phase in which the 1
railroad men say they are placed in a
Iaise light before the mine owners. /
This is in charging lead producers with /
Sl50 a hundred freight to the Mis-
souri, river" The shipper of lead ores.
in settling with the smelter trust. is
in the first placed credited with only
80 per cent Of the lead contents OF his
ore. according to the assay, the 10 per
cent being laid to Toss in smelling"
Ihen he IS charged $3.50 per 100 on
the ground that this is the freight on
the bullion to the Missouri river, where
the nearest Tefneries are. The actual
rate on lead bullion to the Missouri
river is only SO a ton. or 80 cents a
hundred, making at this rate an even
81 hundred which goes 10 the smeIter
trust. The freight on lead bullion from
salt Lake clear to New York is only
I'D ton, or 70 cents a hundred. These
are the tariff rates, and heavy shippers
know whether the smelteT trust would
be likely to pay fun tariff rates on
me vast amount Of tonnage it ships
every month.