The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1914-07-16
The defeat OF the minority stock

holders OF the Feueral company, as
represented by Sidney Norman
through the decision of Judge Philbin
published in full in The Miner last
week, closely following the passing OF
the International Smelling & Refining
company into the hands of the Ana
conda Copper company has opened ur
an interesting field of speculation as
to the ultimate effect Of these devel-
ests in the Occur d'Alene district
Since the publication of the decision
a gentleman who is well informed on
the mining and smelling situation in
this district, discussed possible results
that may follow in the event the ap>
pellate court of New York sustains
the decision Of the trial court and
what he says is here substantially re-
produced.
international 10 Withdraw.
It has been limited for some time
that the International Smelling & Re-
fining company, now owned by the
turn is controlled by the Amalgamat-
ed Copper company and the Rockefel-
Ter interests, has entered into gen
tlemen's agreement with the
Guggenheim interests by which the
former will abandon it's campaign of
competition in this district and con-
tent itself with lead supplies for it's
Tooele plant obtained through the
American Smelling & Refining COM
pany
This reported agreement is in a
measure supported by the fact that
the International has completely re-
tired from this district, although
about three years ago it was the only
real competitor of the Guggenheims.
At the present time it is receiving ores
from the Hecla mine, under 5-year
contract expiring in about two year,;
from the Marsh, under 5-year cun-
tract expiring April 20, 1917; from the
Ontario and from one or two otGer
small producers. Since these con-
tracts were obtained the personal rep
resentative Of the company has been
withdrawn from the district and the
company is evidently not desirous If
entering into new commitments
Some years ago the United States
Smelling company endeavored to OBJ
tain a foothold in the district but, for
some reason which has never been ex-
c,r66 6nto1 ii
and It has since made no move. 1,
is believed that some agreement was
made with the American Smelling &
re efining company at that time and
tina. the United States company will
keep it's hands off the Occur dA.ene
district in return for certain conces-
sions in Utah.
This situation would reduce the
Coeur d'Alene district to position in
which it's producers would be COM
PEELED to do business with the Gug-
genheims or be deprived Of an outlet
for their product. While there are
one or two Independent smelters that
might handle a small portion of the
production it is quite apparent that
their rates would be much higher oW-
ing to the distance from the source of
supply
Government May Take Action.
The Occur d'Alene district is there
fore facing what amounts to |sry
complete monopoly and there appears
to be little chance Of relief unless -ae
government decides to take action as
the result of it's recent investigation
of the Guggenheim methods. 1t Is
rumored that the report to the de-
partment of justice recommends tNa-
proceedings be taken to upset tnc
monopoly in the lead smelling branch
of the trusts business but these rum
ors are merely conjectural and in
measure disproved by lack of action
by the department.
AS matters now stand the American
Smelling & Refining. company, directly
controls nearly 80 per cent Of the pro-
duction of the district. The Federal
contract runs until 1880, by which
time the mines may reasonably be eX-
pected to be exhausted, and the Bun
ker Hill & Sullivan company is alsr,
tied up by contract running the
same length of time. Concessions
have been made to the latter, however,
and under a system Of periodical re-
vision agreed to since :he contract
was made a 5-year agreement will be
entered into next year.
Bunker Hill and Federal Contract
BY the provisions of notifications
OF the contract the Bunker Hill agrees
to ship its ore from June 1, 1915. to
MAY 81, 1920. at the rate under which
the "maioritv ores of the district"
are being sent forward to the Ameri-
can Smelling company on June l..
1915.
BY cunnngly devised arrange
ment everv other contract but that of
the Federal company will expire in
May Of next year, so that, when the