The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1907-09-19
Record Of the "Smelter Trust"
(Ohicago Mining World.)

(Ohicago Mining World)
Although the American Smelling
and Refining Co. may have dictatiy,
control in the silver and lead market,
and to some extent in copper. the
appellation. "smelter trust" Is moi
as appropriate today as 1t was wher
competition with such a rival as the
United States Smelling. Refining and
Mining Co.. organized in March
1906, was not anticipated.
We shall not compare here the
merits of these two large corpora
tions, and for convenience only will
we call the American Smelling and
Refining Co. the ''smelter trust"
Since its organization In April,
1899. up to April 80. 1907, the smelt-
er trust showed net earnings Of $56,-
722, 163, on capitalization which
was increased from $54,G00.000 to
500, 100000 in April 1901. The
record annual net earnings were
$11,509. 500. equivalent 60 nv per
cent on the capitalization, for the
fiscal year ending April 80, 1907.
The dividends declared to date
amount to the large total of $685.
581,553, equivalent to about 6S per
cent OF the total net earnings dur
ing the period of. eight years. The
last quarterly dividends, due in Octo-
Der, are at the rate Of per cent per
annum on the preferred stock, and
8 per cent on the common. In addi-
ton to these dividends there is added
annually a substantial amount from
the surplus earnings to the employees
profit-sharing fund; in the past fiscal
year this sum was $540,420, which
is $91,2l6 more than was contrib
uted in 1906. Having shared these
enormous profits, disbursing large
sums for labor, supplies, machinery,
operating the numerous plants in the
United States and Mexico, and pay
ing taxes and other expenses, there
was surplus Of $13,397 ,029, equiv.
alent to over 10 per cent on the
share-capital. on April 80, 1907. The
authorized share-cap-
ital on September II had market
value of $96,O62.5OO.
Can there be any further doubt of
the great earning power of the smelt-
ing and refining business? We think
not, nor do we believe that the tenn
porary reaction in the price of the
commercial metals will demoralize
the smelter trust. To be sure, earn
ings will be lessened, but 1t is like
wise certain that the management
will not De slow to readiust its treat
ment contracts so that the miner will
carry his share of the reduction in
metal prices.
In 1899. when the 'smelter trust
made its debut, silver averaged
1888 cents per or; copper about II
cents per b., and lead. dutiable at
"a cents per h., AL cents per
pound. In the fiscal year ending
April 30. 1900. when net earnings
were $1.979.90S, silver averaged
around so cents per oz; copper
about 16 cents per h.. and lead near
ly Az cents per pound. In the last
year ending April 80. 1907, when
the net earnings grew to $11 500. $3.50
six times greater than they
were In 19OO-silver averaged
from 6501 to 70.Sl2 cents
per or; copper. 1928 to 25.474 cents
per H.. and lead. 5.G9 to G cents per
pound. Current prices are for silver.
67A cents per o.; copper 1Gh to
IL cents per b.. and lead (combi- |
ma tons price). ATS cents per pound.
Considering how largely the con-
of the commercial metals
has increased since 1900. there is
still sufficient margin for a reduction
In prices before alarm can be felt
for the welfare of the smelter trust. /
Suhacriba for thA wailaea Ainae