The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-10-27
REDUCTION IN LEAD.
New Rate Has Been in Effect For
Some Time

New Rate Has Been in Effect For
Some Time.
The American Smelling company has
reduced the settling price OF lead to
$40 instead of 1890 per 100 pounds
The order at present affects less than
a dozen small shippers. whose cOnsign-
ments have not been heavy enough or
frequent enough 10 Justify entering
into contracts. and has no effect on the
regular contributors who are working
under agreements, most of which run
till New Years and others into the
coming year.
Some of these smaller shippers have
been accepting settlement on the new
basis for two or three weeks past.
That the arrangement is not intended
to be permanent is indicated in the
fact that the company still publishes
its settling price basis as $780,
There is no doubt, however, that the
company has begun a fight that has a
double purpose and while it is going on
the lead Producers may be made to suf-
fer to some extent. One point being
striven for is to compel the ST. Joe
Lead company to cease cutting prices.
the other to so curtail the output for
awhile that a basis may finally be
reached that win be equitable all
around.
Assistant Manager Smith of A. S. &
r. company at this point stated yes
terday that It was possible that lead
would be selling on the New York mar
lSet for SO per 100 pounds by the end of
the year and that such a thing might
happen was intimated by Vice Presi-
dent Barton Sewau when plans were
first laid for the new smelter. 1t was
then given out that the Missouri pro-
ducers had refused to stand by the
western miners in their joint effort
with the American company to keep
prices up and the gentleman named
then declared in emphatic terms that
the Missourians would not be allowed
TO win out on the proposition. The out
put of that section is now understood
to amount to something over 1000, 600
pounds weekly, but if the large accom-
modations of the American company
are thrown on the market the st. Joe
company will be made to suffer losses
that is believed will bring il to terms.
In the meantime the American COM
pany is hurrying up the new Smelter
and upon its completion Mr.. Smith is
confident that such concessions in the
way of treatment, railroad and other
charges can be made that the producer
Will get along all right whether lower
price on lead prevails or not.
The new arrangement and the pos
sible effect il will have on some of the
big producers in Utah has been shown
in the gradual decline of some of the
shares, but there is not a single mine
among them that will either have to
close down or reduce its dividends.
L The Park City dividend-payingm mines
are all earning big SURPRISES. An Off
| cial of the Daly-West declared that
with lead at So 40 the company's rev.
enue viii be cut down about $500 per
/ month. but as it is piling up a surplus
! at the rate of $4,000 per month and
paying So. 500 in dividends, the cut
would not be seriously felt. particular
| ly as its output will soon be sufficient
/ " increased to about make up the diff
/ ference.
| Among the Tintic mines. the Uncle
( Sam has a contract that runs till next
/ March. but If it had none and was
| forced to accept the new terms its
/ dividends would come just the same.
as its surplus would only suffer about
! s.. 500 per month. The May Days con-
/ tract runs away into next summer and
many things may happen by the time
IL expires. while the Carisa is a copper
/ gold mine and is not affected at all.
The Mammoth has a three-year con-
| tract and very little lead. the Ajax is
also in shape to withstand a siege, If
needs be. while the Yankee viii soon
| be sending ore to market at clip that
will build up big treasury for it by
/ the first Of the year.
In Bingham some few mines will feel
( the Brunt OF the new order as they
/ are being operated under lease, but
/ as the greater number of them are
| copper producers the effect will not be
\ at all disastrous. The Ben Butler has
/ a contract that runs till January and
Manager Jacobs says production up to
/ that time will be rushed. Then he
/ hopes to see the clouds lifted.
! Assistant Manager Smith summed UP
the situation by saying that the new
| smelter would be going into commits
/ sion early in the new year and it would
| take lots of ore to feed it. He did not
/ expect to see the producers treated in
| a manner that would keep his COM
pany from getting the ore and he
| thought everything would come out all
| right