The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-05-06
ORE CONTRACTS WITH Smell TIERS SOON
RE TAKENUP FOR RENEWAL OR REVISION
If TERMS SATISFACTORY MINING COMPANIES MAY DE-
eide TO ERECT PLANT TO OWN oREs-HERcvLEs
BUNKER HILL AND STEWART DIRECTLY CONCERNED

Interesting developments are expect
ed in a few weeks in connection with
the renewal of ore contracts between
the American Smelling e. Refining
company and the two biggest lead
producers in the Occur dAlenes, and
1t is intimated that the management
of another of the big producers is also
involved in the negotiations. The stu
alton is being watched with the keen
est interest by mining and smelter
men, and the final action taken oy the
principals to the contracts may have
& far reaching effect both IN respect
to the terms upon which the lead ores
of the Coeur d'Alene will be smelted
and who will do the smelling. While
each mining company that sends It's
product to the Guggenheim smelters rs
operating under an Independent con-
tract, there are certain stipulations In
regard to periodical revisions Of its
terms in one that have direct bear
ing upon the terms and duration OF
another. At the present time the M
erican Smelling & Refining company
has contracts for all the ore produced
by the Hercules, Bunker Hill & Sulli-
van and Stewart, and also of course
with Federal company for the ore of all
its mines. the Federal being controlled
by the smelter people.
An Interesting Situation.
The contract between the American
Smelling & Refining company and the
Hercules was entered into some three
years ago, and almost coincident with
the consummation of the contract
Harry L. Day, at that time manager of
the Hercules, became president and
manager of the Federal company, a {
subsidiary of the so-called smeltlng +
trust 1t was the popular understand
ing and is yet that the presidency and
management of the Federal was ex-
acted as one of the conditions required +
in return for Hercules ore, and the
extreme necessity on the part of the
smelter people to get this ore is clearly
indicated by the favorable terms given |
in the Hercules contract. 1t seems to
have been case of when needs must
the devil drives" The Guggenheims
had to have the Hercules ore to sup
ply their smelling plants and Mr. Day |
had to have the prestige that goes /
with the mana cement of the Federal
company in furtherance of his aspira-
tions both political and in business I
way The Hercules ore contract pro- !
vides a freight and treatment charge /
of $14 per ton, a rate far below that
contained in any other Occur d'Alene .
contract
Some Significant Dates.
The Hercules contract expires at II ,
O'Clock May 81. VIII the Guggenheims ,
renew it on the same terms? VIII the +
DAYS consent to a renewal with any
material modification of the terms?
The answer to those questions are
matters of much speculation among
mining men, and they have a direct
bearing upon another big contract in
this district.
By a peculiar coincidence the date :,
for considering a revision of the con-
tract with the Bunker Hill & Sullivan I
company is on June I, the day follow
ing the expiration Of the Hercules con-
tract. This contract was entered into
in 1906 to run 25 years, with proViso
that every five years it would be sub
iect to revision by which the mining
company would be given the freight
and treatment rate "at which the ma
iority of the ores Of the district are !,
being shipped" The interesting point +
in the situation is that unless the Her
cules contract Is renewed upon some 1
basis or other on or before May 81 the I
majority of the ore shipments from the /
district so far as these negotiations
are concerned, will be represented by I
the mines of the Federal company 1
which are known to pay the highest
freight and treatment charge Of any
mines in the district. The Stewart y
contract would cut no figure in this
connection, since it Is now understood 4,
to be shipping under practically the
same terms as the Federal and Is sub
iect to revision on June l upon identi-
cally the same terms as those agreed
upon with the Bunker Hill. The Bunk
er Hill contract has fifteen years to
run. subject to modification every five
years as stated above. It's contract
now 1t is stated has an advantage of
S5 cents per ton over the Federal, and +
it is doubtful If the company viii sub
nit to a renewal even on the present (
basis. and especially in view Of the
concessions that have been granted tc
the Hercules.
Some Possible Results.
The Guggenheims are past masters
Of the art of framing ore contracts and
with the immense resources at their
command 1t is possible that they have /
plans matured that viii still leave !
them IN control of the lead produced
in this district. But in the event that