Gilpin observer., 1912-08-15
A JUST COMPLAINT

Ai6o OA tHS oACilSI eiuSl, WHICH IN
rapacity. greed and robbery Is un-
equalled in the civilized world. With
the protection of the Taft adminis-
tration and fostered by Republican
doctrine, this monster seems i'm
mune to all sence of decency and
honor. But We print this communi-
cation from valued subscriber, hop
ing that some redress can be had
for the ore producer:
Editor Observer,
Dear SIR
! In few terse words the writer be-
lieves that he can make clear the
chief reasons for the small producer
of precious metal ores and its by
products, protesting against the
methods of the so-called Smelter
Trust.
In the first place he watches the
columns Of his daily paper for tho
New York quotation on silver, cop-
per, lead and zinc and places val-
uation on his production of ore on
the then market quotation. While
not questioning the right of the
smelters or their agents to place
any price they may see fit to reduce
/ by smelling and refining and obtain
the contained mteals, be the charge
$500 or $4,000 per ton; he does
protest against hidden charge that
only appears after he has shipped
his product to the buyer.
First: An irregular deduction for
moisture, which is outside Of the con-
troll of the shipper or his agent.
Second: An arbitrary payment on
gold contents based on tonnage, ship
ments, for instance $500, $500 or
$3.50 per ounce paid, when fine gold
is worth s2O.67 per ounce
Third: Silver paid at 80 or 95 per
| cent of market price.
Fourth: Copper at New York price,
/ less arbitrary deductions solely in
control of the tuyer.
| Fifth: Lead, based on percentage of
contents and settled under similar
conditions.
| Sixth: Zinc, which the shipper ad-
mits is detriment. and Of no value.
{ unless -treated-sOlely as zinc pro-
duct with a content of 40 per cent
or more, is charged penalty pro-
viding it Is over 10 per cent This
ore being mixed with other ores car
rying less than 10 per cent, or no
zinc values, makes it not detrimental
4 to the buyer.
The owner or operator of mine
or prospect bases the value Of his
ores on assay returns, and so rep
resents them to a would-be investor,
explaining that sampling, freight and
smelling charges are to be deducted.
/ On this basis capital is put UP to
/ open and operate the property. A
tonnage having been acquired on this
basis, a shipment is made with the
oitime result that the shipper re-
ceives but from 80 per cent upwards
Of the expected returns and Is un-
able to meet the expense OF mining
4 the ore. This unforeseen result would
have been avoided had he known ex-
oSSiy tidi Sc iO4 u titihcut W oo
applicable to the grade of ore that
the mine was producing.
The writer has no fault to find
with the \. S. & r. Co., or its d.
rectors and stockholders, whether
they be Mr.. Guggenheim, Mr.. Morgan
or Mr. Rockefeller, but does charge
that their manager, Mr.. Guiterman,
is following a suicidal policy in hid
ing charges for the treatment Of
ores under various methods of deduc-
tions, which is detrimental to the
small producer; furthermore, discrim>
nation in smelter rates are made.
Favored shippers paying as low as
$1.75 per ton while others pay $3.50
for the same service.
This Is the sole cause OF the an.
tipathy and animosity engendered be-
tween the small shipper of ores and
his sole purchaser, which under ex-
listing conditions. is arbitrary.
So: Manager Gui.erman. why not
place charge for smelling which
will cover all expense again0t thu
payment of market quotation on met
al content?
What is the meaning OF this SUB
terfuge which is the basis OF the ex-
istence of the smelter combinationf
The bill which will cone Up to the
people to vote on this fall. may in
part, solve some OF this mystery that
is so confusing to the small shipper.
Respectfully.
"25 YEARS A MINER. "a