White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1914-08-16
NEWSoF THE WEEK
Ohio Copper SUES bingham Central
for s13s.Ooo

Ohio Copper sues bingham Central
for s133.Ooo
Ohio Copper has filed suit against
TIE Bingham Central railroad, which
operates the line through the Mas
cote tunnel. for the recovery Of
s133, o27.o 5, alleged 10 have been
vrongfully charged up to the Ohio
Copper during the period that r.
Augustus Heinze controlled both
companies. The petition was filed in
the federal court at Salt Lake City
say the Telegram
The petition recites that a contract
was entered into between the Ohio
Copper company and the Bingham
Central railroad May s, 1908. for a
period of ten years. That the agree
ment was that Ohio Copper should
load its pres into the Bingham Gen.
trail railroad cars at any point in the
tunnel and that the product should
be delivered to the Ohio mill In Lark,
for which the Ohio company vas 10
pay the railroad company not to ex-
coed Is cents a ton. That the Bling
ham Central railroad was 10 con-
struct a track from the mill TO the
site of the projected plant of the
Mines Smelling company and haul
the concentrates of the Ohio TO the
smelter for a charge OF 40 cents a
ton.
II is set forth that Ohio Copper has
been charged with and paid the rail-
road company 20 cents a ton for a
product OF from 10000 to $4,000
tons a month, and As cents was paid
for deliveries OF $4,000 tons or bet
ter. That the Bingham Central did
not construct its own line from the
mil plant 10 the smelter. and In con-
sequel "a the Ohio Copper has beer
compelled TO ship its concentrates -
the Garfield smelter, for which it is
paying IS cents a ton. That a wrong
full charge has been made al times
OF 5 cents a ton on crude ore ship
ments and that Ohio has been forced
TO pay 35 cents more a ton for haul
ing its concentrates than was agreed
to under It's contract.
1t is further alleged that Ohio Cop
per and Bingham Central have both
been dominated by r. Augustus
Heinze until June 1914. when Ohio
Copper elected directors. That
during this period OF the Heinze re-
gime he appointed all men in the OPP
Grating department OF the mining
company and that these men did
both the work of the railroad and
mine. That during this period there
has been an office and managerial
charge here of about $500 a month
and $1,000 a month for New York
expenses Of the company. That of
this total of $500 a month expense, !
the railroad company mas only cred
tied 800 a month to Ohio Copper,
making this charge against the rail- ,
road company.
Bingham Central secured a right
OF way W. certain ground of the
Ohio Copper company. In order to
build its track from the mouth of
the tunnel to the mill plant at
Lark. and a steel trestle $50 feet In
length was built to make the con-
neetion. This construction cost
about 5000 and was charged TO
the Ohio Copper company. The Mas
cote tunnel was extended beyond
the lines of the Ohio Copper and
was charged up u this company as
development work.
, At times. according to the petition.
when the Ohio Copper was indebted
10 the railroad company, the inter
est on the money was compounded
and the indebtedness of the Ohio
company was increased IN various
ways, though some OF these charges
yer concealed until after the organ