The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-23
ONE REASON WHY LEAD
HAS HELD UP FIRMLY
Inference That the American
Company Has Held Up
Price Of Metal.

IN the recent political campaign IL
; Colorado the policy OF the American
Smelling and Refining company received
q good deal OF discussion. much Of which
was nonseusical, says the Engineering and
Mining Journal However, there was SUI
GcIent oi rational character 10 lead Nlv.
Gu!te.man. general manager OF the Colo
rado department OF the company. 10
make an official reply
The chief interest in Nj Guitegmau' =
letter. in our opinion, is the admission
that tic smelling company has exercised
It's influence 20 elevate the price f0v lead,
He does not assert specifically that the
company has succeeded in Keeping IT at 4
level above that which otherwise would
have existed but The Inference is strong
( that such IS the opinion OF his company.
Obviously. no one can reduce 10 n mum
erical statement what might have been
81 something had not happened, but X Is
the common opinion OF economic stu
dents that during the regime OF the
American Smelling and Refining com
pany the price for lead has been higher
than IL would have been n that company
| had not exercised successful dominion
In the market for Il series OF years. lnls
was 10 the great advantage both Of the
smelling company and the producers OF
I lead ore, and correspondence at The eN-
penSc Of tho consumers Of lead products.
" TN respect 10 llg ltlhiOnS bclN'tli
4 the smelling company and the orc pro-
duccrS Of Colorado In general Mv, Guit-
"Tmnn summarizes the situation In 81
lucid way. but his arguments would be
more convincing IL they were supported
by figures. II IS pity that the manage
ment OF the company cannot make up
IT'S mind 10 be more frank. both with It's
customers and It's stockholders, The
stockholders are informed OF large profits
bu, do not know how they are derived
and what is the prospect for their con
InUauCc. while the customers, I. e.. the
producers Ut ore, look upon the same
large profits as being TO more or less
extent eXtorted from their pockets.
The chief part OF the business or the
Smelling and Refining company Is the
smelling OF ore. The conditions which
make Tor an increase in the ore supply
tend 10 Increase the profits OF the com,
psny. The company has never stated
how much ore it smelts or given any
other specific information respecting It's
business, its annual reports being con-
fined 10 eenerallties.
We appreciate the difficulties wrapped
around the disclosure OF details Of it's
business. and It's proper reluctance 70
disclose the results Of speculalons IL
the metals, etc, that might be to the ad-
vantage OF It's competitors, but neverthe-
less IL might bc able TO give information
satisfactory 10 many interests without
i'm any way injuring IL own. or course
the charge that the smelling company Is
throttlng the mining industry Is absurd.
Such a policy would be simply harknri.
Any well advised concern going into the
general smelling business expects to
realize a profit of S1.50 10 So per ton oE
orc smelted. az any lower figure the bust
ness would not be attractive. taking all
the chances into consideration. The
average profit 10 the American Smelling
and Refining company is probably some
what higher. In certain districts, like
Utah. where there Is keen competition.
IL is probably less: also in districts like
Colorado. where Il Is necessary TO he
content with a compara lively small profit
in order to- stimulate the necessary pro-
Mexico the ore producers arc probably
caused 10 suffer ali OF the burden that
they can bear, especially II they produce
the kind of ore that Is IN excess supply.
II is the ability 20 average these condi-
tiuns; VIZ. large profits in one district
against small profits IN another that con-
tributes largely 10 the wonderful earning
capacity Of the company,