The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-03-29


of state shelters have been made both
in Colorado and Arizona. This de-
mand is direct outgrowth of the
abnormal trade conditions produced by
the war. Shipments of ore have null
uplied enormously; it has been a
golden era for the small producer;
prospectors by the hundred all over
the United States have been able to
take out ore and not infrequently to
make modest fortunes in the opera
ton of mines that would possess no
chance of being persistently worked
with metals at usual prices. Equal
" have the large mines been stimu-
lated to extraordinary production at
this period when a single ton OF ore
Is worth as much as two or three
tons in ordinary times. Under such
circumstances it is natural that the
custom smelters should be over
whelmed To accept and pay for all
the ore that might be flung at them,
without imposing some restriction
would soon empty their treasures.
Even If they could provide the capital
to carry such large stocks of metal
until finally sold in the eastern mar
ket, the purchase of huge tonnages
on war inflated quotations would en-
tail an element of risk that no intelli-
gent body of business men could be
expected to take. We are not under
taking to argue a case for the smelter
against their critics. nor to white
wash any grimy regulations. We APP
preciate the natural desire of the min
err to take advantage of prices such as
have never been seen before nor are
likely to be seen again. 1t is proper
and right that he should break into
this brilliant market if he can, but
the evident difficulties of the situa
ton must be faced. I'm large sense
the custom smelters by the very mag
nitude of their operations, and by vir-
tue of the necessary functions they
perform in our complex economic sys-
tenn, become in effect public servants
AS such their responsibility to the
people might lay them open to legis-
lation with the give and take of spe
cial privilege and specific obligation
looking to cooperation for the gen.
eral welfare, on the same theory as
common carriers. This might be more
equitable than 10 confront them with
a system of state controlled competi-
ton granting that it could be made
effective.
The smelters certainly should not
be blamed for protecting themselves
against an unsaleable accumulation
of metals. The interest on the cap
ital locked up in excessive stocks
would soon absorb more than their
legitimate smelling profit, or else they
would be compelled to sell in quanti-
ties that would depress the market
and precipitate financial disaster
This aspect of the business is so plain
sthat no one can fail to see the mo-
tives that have led to restrictions up
or the avalanche of ore that has been
offered, and to the practice of dis
counting current quotations in effect
ing settlements. The position of the
small shipper is equally understand
able when he calls for an open mar
ket and full pay for his output. 1t
would be most desirable to accomplish
1t If possible, but it is not conceivable
that state owned and operated smelt-
ers could afford the relief expected |
The cost of a modern well equipped |
plant capable of competing with the
cid established operators would prove |
a heavy burden; the capital necessary |
to carry the stocks of metal until they
could be sold to advantage would |
amount to still greater sums. The |
risks due to changing market condi-
lions would almost Immediately force
the adoption of measures, similar to /
those now employed by private smelt-
ers in order to safeguard the state
treasury Thus the state would find
itself in the end compelled to deal
with the great metal selling organiza-
lions in order to get rid of its out
put There is no escape from these
controlling influences. Normal COM
petition among the great interests is
what rules, whether the state or a
private corporation reduces the metal
from the ore, No state could finance
the horde of small producers clamor-
ing for an outlet to market 1t would
be compelled, sooner or later, to throw II
the burden back upon the shippers. II i
II should undertake to make settle
ment by the issuance of warehouse [
certificates the miner would again {
the difficulties of the domn- I
ating agencies at the great market {
centers He would be under the me- I
cessity of negotiating his certificates {
at a discount, in the computation of
which the identical factors that the \
private smelters are obliged TO take t
into consideration in their dealings I
with individual producers would re- G
appear 1t is well known that small /
Independent custom smelters invari- r
ably suffer failure. Only where the /
smelter has sufficient supply of ore /
available from mines under its con- i
troll, so as to possess a basis for OPP |
arating apart from the occasional Of Z
'eringS of custom ore has sucraSs 4