The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-11-07
More Seriously Effected
by New Smelter Rules
Than Other States.
REASON is HIGH GRADE
OF its Gold Ores Output. What the
Smeiters are Trying to Do and
How They are Going About 1t.

A great deal of curiosity has been
manifested recently over the signifi-
cance of the action of the western
smelters in refusing to take ore from
the producers on scale equal to the
rate heretofore secured. This step
when applied to copper bearing ores
has been pretty well understood, but
when their retrenchment was found
to operate against gold and silver
bearing ores the policy which prompt
ed their curtailment has given rise
to considerable apprehension.
Reports received from the smelling
companies indicate that this move
has no significance, except that un-
der present conditions they do not
propose to tie up funds by making
large ore purchases. In addition the
smelters running under reduced ca
pacities have more ore on hand than
they can conveniently handle and
rather than employ their ore fund
to add to this congestion they prefer
to keep a larger cash balance on
hand to meet any unexpected emer-
gency.
1t is known that the Goldfield Con-
solidated company at GoNlfield has
been forced to cut its tonnage of high
grade ore going to the smelters for
the simple reason that instructions
were received from the American
Smelling & Refining company that
it could not handle as much ore in
the future as the Goldfield company
had been sending in the past.
The American Smelling & Refin-
ing company, as well as other smelt-
ing companies, is establishing a new
rule. the feature of which is the de-
ferment of payments for period of
from four to six weeks on high grade
ores. This means that the smelters
will have been able in that time to
have marketed their bullion, realiZ-
ing the proceeds of its sale, before
they in turn settle with the producer.
Heretofore, the smelters have set
tied for all ores Immediately upon
determination of their value, bearing
all costs and carrying the product
until the mint returns were in. Now,
this will fall on the producer and
some time will ensue after he has
shipped his ore until he realizes the
profits on it. he high grade. mines
of Nevada are the most seriously af-
fected as resflt of tlfs decision as
it is producing more high grade gold
ore than any other state. While the
tonnage from other states may be as
large, or larger, the ore is not of so
high an average grade.
The Nevada ores are for the most
part shipped to Salt Lake and San
Francisco, but the smelling company
distributes the product among its diff
ferent plants, much of it going to
Colorado. They are of highly sill
cious character, and the plants being
in the most need of this character OF
ore are supplied with them accord
ingly. The last shipment Of ore from
the high grade vault of the Mohawk
at Godfield in which no ore worth
less than $500 is stored, netted the
company $126,000. This will illus
trate the value of what must be tenn
porarily sacrificed.
Regarding the report that the
American Smelling & Refining COM
pany had stopped making immediate
settlement as reported from Gold
field, Assistant Manager Joseph M
Bidwell said at Salt Lake: The
fact is, not only the smelters here
but all over the country have been
receiving more ore than they could
conveniently handle. While we have
nothing to do with the Goldfield Con-
solidated, as that company sells its
ore to one of the purchasing COM
panies located in the camp, | can
readily understand that some such
measure as indicated in the dispatch
es is a necessity under existing con
ditions. The Goldfeld product is one
that takes the smelters some time tc
realize on. This not only applies tC
Goldfield but to a great many Other
camps and it is perfectly natural tha'
the smelling companies do not desire
to tie up their money for long time
any more than anyone else. While
this rule works a hardship on some
of the producers, the smelters mus
protect themselves.
Another authority speaking of the
smelling curtailment at Denver says
1.-THE smelters are probably moved tt
take this action because of the con
gested condition of ore shipments OF
the railroads, the desire to benefit by
the interest accruing on the none!
thus held, and possibly the variou!
labor troubles. The Mohawk-Jumbo
Little Florence and Francis Mohawl
at Goidfield are paying dividends ant
have heavy cash reserves. l antici
pate that the new order of things
will not be generally harmful
"The smelters, as far as | know
are making payments for ore al
quickly as the smelling business
rules will permit. There is no ques
| tion that can arise from none,
shortage standpoint as far as | cal
see. I do not know what course th'
smelters may pursue if the producer
refuse to ease up. If they do GU
their production, it will be merel,
by the cooperation with the smelter
to help clear the situation. Produc
ers without contracts with the smelt
ers are in bad way just now, an