The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-27
METAL PRICES
AND SMELLING
What Has Happened to Lead,
Silver and Copper Since
Last January.
PROSPECTS FOR NEXT YEAR
HOW SHELTERS WILL EVEN UP
FOR PAST BAD LUCK.
PROSPECTS FOR NEXT YEAR
BY l. e. cAMoMILE.

The expected happened yesterday when
the American Smelling & Refining COM
pany cut down the settling basis for lead
from 81 IS 10 81 50 per 100 pounds. This is
the first cut since September, when it was
lowered from s5.25 to "a 10 Last January
the settling basis was So. so the drop dur
ing the year, up to date, has been $1.65
per 100 pounds.
Silver is also at the low mark of the
Year. 1t opened the year at better than
Csc per ounce. On Aug. il touched 69tsc
and everybody expected 10. see 1t go the
other 1sc, but 1t failed to do so, as FAR as
the local settling quotations were con-
of 12l4c since the beginning of August
And copper? Well, look at il. Early in
January the settling basis was 24s4c per
pound; in March it had reached 2514c,
while now it is at 1224c "a fall of practical
iv % per cent from the high mark, with
ldore than q month TO 20 in which to
make this comparison look strong.
In the case of lead and copper the prac-
-e with the smeiters here has been to
make the average price of the metal for
The preceding the set price for each cur
rent week. From January to March the
smelling companies thus had little the
best Of the producers, but after that the
reverse was the case. With the lead-set-
ting schedule the SmelterS got the small
end of the stick for nearly the whole
year. as the price was highest when the
year opened.
But Inc producer neeu not mug himself
too fondly over The outcome; he will get
what the smelterman believes is coming
10 him yet He Is already beginning TO
hear about it. The turn came. so far as
lead is concerned, the other day, when
the trust decided to abolish the flat week
" rate method and decided to pay the
producer what the market justified at the
time of receiving the ore. That means
that a man who ships today with lead
quoted at 81. % may find when the settle
ment day comes that he IS 10 get only
81 %. or any other amount that the smell
ing company considers market conditions
Justify.
New Contract Features.
There is also something doing in other
lines that the producer who has not al
ready learned about will be introduced
TO by the end of the year It will be re
membered that year or more ago the
smelters undertook to make contracts in
which il was proposed TO settle Tor silver
at the current market price, with pro-
viso that I'm case the metal rose in price
TO better than Coo or roc, whichever It
was, the smelling company was to keep
One-third of the gain a. a sort of bonus
Tor the efforts that might be made -
jump the price up. 1t is now understood
that all new contracts will contain a sim
liar clause to the one that was previously
fought so strenuously that the scheme of
enforcing il was abandoned.
Now. there may not be any combination
or community Of interests scheme be
hind this plan. but from the best infOrma-
tlOn ODtdludDle at the present tliltC liG
producer is going to find that all smelters
will exact the insertion Of some such pro-
Viso as that outlined. New contracts will
also be based on a heavier smelling
charge than formerly. If it does not ap-
pear in the form of raising the minimum
base. Il will be found in the ''penaliZing
system employed in figuring new con-
tracts.
Another thing that is promised the pro-
Queer is that he will not find it so easy
TO get a contract at all. unless he is will
ing to tie up for five to ten years. The
producer who mas a notion that a year is
long enough to mortgage his product
ahead will find that. for some reason or
another. the smelling companies done
care whether they get his business or not.
He will simply be left TO nurse his wrath
over the treatment h is getting until
such time as he is willing TO eat or The
humble pie laid before him and beg for
contract of some kind.
This is the outlook for 1905; II Is the
kind of proposition that is staring the
mine owner in the face right now. If the
plan is changed it VIII have to be done
through a complete organization Of mine
owners and operators in all the mining
states of the west