Gilpin observer., 1911-04-20
The Newhouse
Reduces Rates

AS a result OF the Lrlp OF PRESIDENT
Frank A. Schiriher of the Newhouse
tunnel and his investigation of the
affairs of the enterprise 1t is an
nounced that the thoroughly progress
sive policy introduced by the manage
ment will be continued upon the most
liberal principles. Special induce
ments in the way Of rates and as
sistance will be rendered prospective
operators In development and explora-
ton work.
A sweeping reduction in transporta-
tion and air service rates is now
posted to take effect April 18th. On
transportation the reduction on exist
ing contracts will be twenty cents
per ton on all ores that yield less
than $500 net per ton. This will ap-
ply to very much the larger tonnage
handled. The rates for air are cut
to $500 for drifting drills and $500
for stopping drills for the drill shift.
The charge is less than actual cost
of production based upon present con-
sumption and can only be recompens-
ed by large increase Of usage which
it is anticipated that this rate will
foster. The management will aim to
mine owners can profit by Immediate
ly taking advantage Of the facilities
which the tunnel offers, the purpose
of course being to stimulate business
of the tunnel to the utmost and
through the larger volume increase
the earnings of the company. These
concessions at this time are made
by the management with the direct
immediate purpose Of merely sustain
ing operationg costs and relieving the
pocketbooks that has been kept up
since the beginning Of the tunnel. If
this can be done by an increase OF
patronage yielding but a minimum OF
profit for the time. the ultimate re
suit will be the development Of such
a volume of business as to well re-
pay the effort. The management fur
ther announces that with the growth
of business there is much smaller
proportionate increase Of costs. it
will be possible to further reduce
charges In differcct departments and
as such changes become possible
they will be maSc in adherence to
the policy OF earning but a rcason-
able profit OF the invested capital.
The policy Is one that will rebound
sal d,r, nj
mine operators and to all business
interests of the city and assuredly
will work out to the greater profit OF
the tunnel. In connection with the
development Of trade a plan was also
formulated for the erection ultimately
of a custom milling plant by the COM
pany at the portal Of the tunnel.
Such mill to be at the service OF
shippers from the mines in the TIM
mel workings. This plan will really be
n greater assistance to mining Than
any reduction Of transportation rates
and will certainly cause Increase Of
production in large ratio than the ut
most capacity Of the plan; for the
reason that in connection with the
mining OF milling ores there will be
discoveries OF richer smelling ores.
The present is the first time that
the tunnel company has ever been III
position to devote attention to The
development Of its business possibiii'
ties since up to this time its forces
have been engaged in the construc-
tion Of the tunnel. 1t is therefore
gratifying to find that the same en-
ergy and wisdom is to be given the
latter phase as. has been expended
in digging and cquipping the great
five-mile tunnel.-Idaho Springs Ga
zette.