The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-10-08
WHIP IT into THE LIGHT
Demand Is Made for Greater Pub
licity in Affairs of Smell
ter Trust.

Seven per cent on hundred million
dollars does not tell the tale of Smeter
trust earnings. says Denver Ores &
Metals. According to the annual report
just issued, and taking into account the
amount appropriated for new construction
ing 12h per cent on the fifty millions or
common stock. 1t may be noted, by the
way. that the United States Smelling,
Refining & Milling company, the young
and powerful rival of the Smelter trust.
Is now earning more than 100000 monthly.
At this rate there will be balance of
about ~ per cent of the $14, 10000 of COM
mon stock after per cent dividend has
The business evidently is profitable, even
where competition is sharp.
Published earnings as already intimat-
ed. do not tell the whole story of the
Smelter trust. Even Il per cent is not ex-
cessve for a business involving consid-
cradle risk But the capital actually in
vested in the business is, of course, much
less than 100000; and the market estimate
OF the risk is indicated by the fact that
Smelter trust preferred Is selling for 115
and the common for 155. The published
earnings probably represent more than %
per cent on the actual investment
Part of the invested capital, indeed. con-
sists of accumulated earnings. This is
one way of concealing the true amount of
the earnings. IT is the policy of the
American Shelters Securities company to
tulH all OI the profits OF us mining opera
lions back into the mines until the latter
are fully developed and the original in
vestment liquidated. Notwithstanding
this fact, however. and Notwithstanding
smelling plants are incomplete, this COM
lytny during its first year met all its fixed
charges and had a small surplus. More
than half of American Smelters Securi-
ties common, $50. 0,O00 in all, is held by
the Smelter trust. while nearly all of the
remainder is slowed away in the inside
vest pocket of the management; in other
words. 1t is held by the Guggenheim Ex-
ings Of the smelling business. therefore,
Whether reported as such, or whether
they are reinvested. inure to the benefit
or stockholders in the parent company.
From what has been said it will be
seen that to estimate the actual earnings
of the Smelter trust in addition to the
ten millions reported would be difficult.
1t would be even harder to estimate the
tribute paid by the miner upon the basis
OF the tariffs for the treatment of ore.
AS every miner knows. metal for which
no allowance is made is one of the princi-
pal sources of trust profits. and if cur
rent report is true. illegal rebates from
the railroads add to it's revenue.
ore producers have q right to demand
more publicity in the affairs OF the smelt-
ing companies. The public has a right
10 complete statistics including what is
nomlnally charged for treatment. the val
ne OF the metals recovered and how much
of this amount is delivered to the ore
producers In other words. il should be
known just what tribute the smelters are
collecting from the mines. Corporate
publicity that would be effective along
these lines deserves the support of min
ing men, and it will be well for them to
SEND 10 the United States senate and
house of representatives men that will
vote for corporate publicity. The SmeIter
trust evidently has the same opinion
about schedules that some people have of
ianSuage-that is, that schedules should
be used to conceal facts as Ianguape is
sometimes used to conceal thought Some
of the subsidiary companies have appa-
rently been organized more for conceal
ment than convenience There is too
much hidden about the Shelter trust liz
ter. Whip il into the light