Bisbee daily review., 1908-11-27
GAUNTLET IS
 TOSSED ID THE
 GUGGENHE|MS
Entrance of Amalgamated h. tereSts Into Utah Smelting Field Is Regarded As of the Greatest Significance.

BOSTON. Nov. 2s.-Tne entrance oi Messrs. Cole. Ryan and Thornton AmalgamRted interests-into the utaf smelting field. is an event of deep sig Rt6cance. It means that the gaunsle: has been thrown down to the Guggen, heifs. An interest affiliated with the Amaigsmated says:
 While the Anaigamated, as a com pany. has no osnersaip in the new Utah smeiter, the men who have help cd to put the Washoe smelter and the Montana copper interests where they are today, are identified with the new propos tion and have declared war or the American Smelling and Refining company.
 Whether or not the Guggenheims were trying to bluff the Utah Consoi. dated in the mater of smelter charges or new contract. 1t is too late now for them to admit it, as new contracts have been signed and papers passed whereby the new smeiter will treat the ores of the Utaa Consolidated be- ginning April 1. 1910, at figure which together with the savings in freight win amount to $f.156 per ton.
 The men formerly connected with the old Utah smelter will be retained in the new plant, as there has been no disfntegration of forces since the old plant was shut down.
 '@The Garfield plant of the American Smeltng and Refining company can i'll afford to lose the fuxing ores of the Utah Consolidated, and the Gug- genheins might better have agreed to treat the ores for nothing than to have been deprived of them altogether.
 Then again. the entrance of au- other competing smelter into their field win still further embarrass the .Guggenheim organization, which has seen it to ride ronghsaod over the 'wes1ern mining interests, to levy ex- tortioBate charges and to incur the bitter hostility of almost every min ing concern compelled to rely upon custom ore treatment.
 "The amount of capital which the new smelling company will start with has not been determined, as no defin- ite conclusion has been arrived at as to the ultimate scope of the enter prise There have been many rs- quests for the new stock and there have been numerous inquiries on the part of mining companies for smelt. ing rates, which looks as though the smeiting department of the new plant would have plenty to do.
 The old Utah Consolidated tram will be utilized, as it can be easily improved so as to connect the mine with the new works"
 Utah is a rapidly growing mining field, and any smelter there would cer- tainly prove of benefit to the many large producing properties in that state, who have to depend upon GUS tom smelters for the treatment oI their product Not until April. 1910, however, will the Utah Consolidated be in position to avail itself of the new smelting arrangement. For the next sixteen months 1t will continue to cost the Utah Consolidated com Pany cents per pound to produce lrs copper. unless there should be un- looked for improvement in the grade of the ores.
 Guggenheims for the treatment of 500 tons of ore per day 1t is to be doubt ed If the Utah Consolidated is now making an output to exceed 200, ,ooO pounds per month, so that profits on a If 1-z cent copper maket will aver age close to s65, 900 per month, or an amount equal to s2.60 per share.
 4 15-cent copper market for year would mean earnings at the rate of a little over 8 per share on the pres ent output If under the new smeIt- CT arrangement it can increase its pro duction and reduce its copper cost by one cent per pound. as is expected, the company should be able to show earnings of slightly over s4 per share on 15-cent copper. but this Is for the future to determine.
 1t is apparent that with the com 9aay's present treasury position. stockholders should continue to re- ceive quarterly dividends of at least 90 cents per share.
 It is fortunate for the Utah Consoli- dated that the new arrangement has obviated the necessity for a new plant to be buiIt with the company cash. There were many wao strongly op- posed this plan. They are now quits wiling to acQuiesce in the new ar engagement, as 1t will keep the treas ury intact and makes unnecessary further argument as to whether the future of the mine ;ustifes the sacri. flea of all it's accumulated surplus fin the erection of @ new plant