Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1908-02-23
FACE GIGANTIC
FINANCIAL TASK


has become wrought up to a point
where mining men are contemplating
the erection of a number of indepen-
dent smelling plants in order to
start competition for the treatment
of ores, give themselves better rates
for their product, and rid themselves
of the arbitrary treatment which
they allege the American Smelling
& Refining Company has been giving
them.
AS stated yesterday in advices
from Denver, the American Mining
Congress has endorsed this move
ment and James F. Galbreath, Jr.,
the secretary of that organization
who is back from Montana, states
that fund of 100000 has been
raised by miners at Helena, Mont,
to build an Independent plant. Like
steps have recently been taken at
Salt Lake and at Reno. This pent-up
combine no doubt has cause for its
origin, but between the injury suf-
fered and the remedy suggested
there lies a gap of considerable mag
nitude.
Mining men who have followed the
smelling business are unanimous in
admitting that if the independent OPP
orators are to get together to push
their plans to completion they will
have to work in harmony and under
stand that before they can begin the
work they must have $5,000,000
fund pledged or else their efforts in
that line are bound to result disas-
trously Even the sum mentioned
would not finance more than a plant
of 1000-ton daily capacity if suit
able ore purchasing fund is included
in the $5,00O,O00. Besides payrolls
must be met, supplies secured and
many other expenses incurred for
oOulc IHIcS hOHIIS uSlOIS the mar
ketable product has been sold and
returns made to the smelter.
In an Independent move of this
character it would also be necessary
to provide fund to meet competi-
tion which would likely develop as
an answer to the organization of such
a move. AS an illustration of the
costs of smelling plants and their
auxiliary apparatus, figures show that
the Washoe plant at Butte cost $40,
100000. The Garfield plant near
alt Lake cost $7,OOO,OOO; the Step
Zoe plant, smelter and concentration,
will have cost $8,000,0O0 before be-
ing completed. Even the smaller
plants, such as the Consolidated Ari-
iona Company put up at Humboldt,
Arizona, cost over $1,000,000. Hence
it develops that while independent
smelters are no doubt a phase of the
smelling business that has been much
such plants have gone through have
discouraged many from entering the
field. There are some 200 indepen-
dent smelling plants in the West,
whose only remembrance today is eX-
pressed by the ruins that mark the
sites where they once stood. The
successful plants were absorbed by
the combine At the present time
there is big fight on at Cripple
Creek between the United Reduction
and Refining Company, which is con-
trolled by the American Smelling
and Refining Company, and the Col
den Cycle Company, an independent.
AS a result, rates have been slashed,
the camp is shipping more ore than
ever, but the outcome of the fight
must be awaited before a decision
can be reached. The greatest diff
Guilty encountered in the smelling
business is in that branch which ar
ranges a settlement with the pro-
Queer over the contents of his ores
sold. The big smelling companies
are always trying to shave off pro-
fit in addition to the regular treat
ment rates There are penalties to
be imposed, short weight to be de-
Quoted, allowances made for wet or
dry ores and other items arranged.
The smelter in addition always pays
below the market price for the metal
in order to protect itself from a de-
clining market, as well as to fore
stall conditions as they may exist
so days from date when a final set
Element is made.
When prices are low, as they are
at present, the smelters are always
trying to make rates with the oper-
ators based on the less lenient terms
that prevail now instead of the bet
ter rates that wilt exist later. In this
aWay the operator gets to look at the
melter as mineral pawn broker
from which he can only get accom-
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