Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-10-29
UTAH CON. WILL
BUILD SHELTER.
At Least This Much Is Indicated
From President U. H.
Broughton.
--
AK OUT FOR GuGGENHElMs.
What Opposition Has to sas--In criti-
cism OF Head OF Bingham
Company.

( ACCORDING 10 recent auSiceS iron
! the east, President Urban II, Brough-
ton Of the Utah Consolidated Min
ms company, mas inuisatuu .As uetei-
linnauoh 70 carry QUO ms sineitet
nmiuing pans III rooe.e eounty, not
WitnstunainS the opposition uryeiup.
ca irons Guggenueim suIrce me
Boston news Bureau, III a recent issue,
siAea u lew SIDE ilgats on the conrto-
>ersN An associate OF f'resldeni
EfuIShtoh says:
nf BrouSntDn tells me that he Will
build a smeitcr Tor the Utah Consoli-
dateG, ana when he makes up his mind
70 DO q thing, ne generally does It..
ignoring opposition. There 10 more lp
the situation than simply a question OF
ore treatment and the cost Of suciI
Treatment. Mi. Broughton considers
mat the Guggenheim interests have
not acted squareIy in tbeIf dealings
with him in other matters, more par
tlcularly regarding the sale of Guggen-
helm copper by the United Metals Sell
ing company. and he does not intend
to be placed in their power He be-
lieres that the undeveiopcd resources
Sof the Utah Consolidated will Justify
MIN In Il 100000 expenditure for
slnelter and lands and he plans to
carry II through in the face of OPP
position. Even though he should not
build a smclter. he has certainly taken
Z position. by an initial expenditure Of
10000 for lands, where IL VIII be
necessary for the Guggerhciu1s to come
10 him and il they do. there may be
several old scores to Settle
an interest IL opposition TO Mr.
Rroughton, familiar With both Sides
OF the controversy, says:
Nh. Broughton apparently takes
me position that as president of the
Gtah Consolidated lie is the law. AS
q matter OF fact. he never even con
Sidered his directors when he decided
70 exercise his land options and after
making the first 10 per cent payment.
ne called his directors together and
asked themEto ratfy his acton. Mr.
.i3foughton considers that because he
has been upheld In an expenditure Of
100000 for land he will be upheld in
an expenditure of $4,000 900 for
smelter, he may be mistaken. Plans
iof snelter construction call for an ey
,penditurc of s1.75OO00. but ii is safe
TO figure upon a $4,000 900. After an
expenditure of $1,000. 900 for land how
ever, the Utah company will only con-
trol two-thirds of land necessary To
prevent damage suits and there Is M
assurance that after the srnelter is
ouilt ~ vii! be allowed to operate,
LOT owners Of the remaining one third
have legal rights which the courts NAV
recognize
When the present contract with tbs
was made 1t was the joint
Work &c u. e. Thayer and James Phil
lips. Jr.. for the Utah Consolidated
and II the matter OF n fivc-ycar con
tract was left to the same parties, there
could be an amicable agreement
reached. Under the present contract
the Garfield smelter treats tho Utah
ores for 50 per ton, and il there have
been penalties attached in addition to
ms; It Is the fault of the Utah Con-
so'idated management in the selection
and shipment of ores which are sub
ject to penalty.
If it has cost the Utah 2ls cents per
pound more to treat it's ores at the
Garfield smclter than formerly, as
President Broughton claims. it is due
to the fact that Utah ores are now
h t,,e ag put 30 pounds of copper TO
the ton instead of 100 pounds as was
the case several years ago. The DAYS
of five and six cent cost for the Utah
60. are over, and President Broughton
knows II as Well as anybody This
fact. together with the fact that there
are but 100000 tons Of ore in sigh,
tour years sun''lv on basis of present
operations) and the management is now
exploring with diamond drills at depth
trNlng to find more. is reason enough
why the company should not spend So
OG0000 in plant when it can get its
ores economically treated foi it, Al
lowing for interest on the $4,000. 900 and
depreciation, ii would actually save
money by so doing,
HTlie decision to build smelter
means suspension or at least reduction
of dividends for the company is not
making over five cents per pound profit
on its present output of l5.00O.00u
pounds per annum, which is $3.50 per
share, and its present surplus is under
the S2Goo.00O mark