New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-29
NINE BADLY MANAGED.
Crisis in affairs of Leroi Mining
Company, of RoSsLand. b. c.
rpv TELEGRAPH TO THE TRIBUNE. J

ca E,-,,cisco MAY ga crisis has been reached
fl the affairs Of the Leroi Mining Company. Lin
tied the BIG English corporation formed by Whit
aker Wright which owns the Leroi Mine, at Ross
land r G and the sn,elter. the second largest IN
the United States, located at Northport, Wash.
For some time the Leroi shareholders have re-
ceived communications from the London o1t7ce OF
the company each month. which stated that the
mine Ues Welding a handsome profit. the
being specified and that large bodies OF excellent
were being discovered in hitherto unprospected
portions Of the mine. 1t ts now asserted that the
reported profits" had basis in fact, and that
the ore bodies in the Leroi Mine are OF too low
grade TO bear the cost OF smelling. 1t is said that
unless they susceptible Of being treated by the
concentration process they practically without
value. one of the statements made officially is that
the assets OF the company. in the shape OF metals
contained In the furnace bottoms at Northport.
have been discovered TO be more than 100000 under
The estimate placed upon them by the companys
manager at Rossland. S F. Parrish; that In view
poor quality OF the Leroi ore, and inability
OF the company obtain suitable iuxing ores
from outside mines. the smelter cannot DO pronta-
bly, operated. and must eventually be closed down.
The significance Of this may be realized when II
is the capital locked up in the smelter
amounts to something over 81 10000. and that the
plant is located in a district which so far has not
produced any tonnage OF ore which would bear
the cost Of mining and smelling. Lack Of good
management is at the root Of the trouble, and
this IS really the only charge which has been
levelled Mr. Parrish. He is said to have alb
scented himself for long periods. largely on &C
count OF sickness and have left the details OF
mine work TO incompetent subOrdinates in whom
he placed implicit confidence Owing 10 improper
surveillance Of mine sampling. samples of ore OF
rich grade. taken from surface working.
sampled by hand permitted 10 be mixed IN
undue proportion with samples taken from the
automatic sampler. over which the ordinary output
OF the mine was passed This procedure served to
create false standard Of valuation OF the ore
mined. and affected the estimates OF profits &C
cordngly.
In view Of these disclosures made By Cali
fornia mining man, John II. Mackenzie. of San
Francisco who called 10 RosslaI4d few
weeks ago to take charge Of the Lerois affairs
during the temporary absence OF Parrish it will
be OF interest 10 know what explanation two
Girectors-Anthony }. Mcmillan. OF ttoss!and 3. Z.
and George >. MaterloW, OF LOndOn-wul Oner 10
the shareholders 10. the speeches delivered by
them the annual meeting OF the company IN
London February IS Beth OF them had visited
spoke in euIogstic terms Of the mine and Of the
management The utJerances OF Mr.. MCMILLAN
naturally regarded authoritative, as ne
occupied the position OF managing director io-
which he draws salary and he claims 70 possess
much knowledge about mining matters. Two years
in the Leroi company similar TO the present, and
that time the managing director was appointed
o exercise such supervision at ROsSlS nd would
render Il impossible for further trouble 10 arise.
Notwithstanding charges against the directors D.
Of the shareholders. the present board per
stock brOking firm doing business in Ross'and and
London.