The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-02-15
NORTHERN PACIFIC BRINGS ACTION IN
FEDERAL COURT AGAINST THE HERCULES
WOULD COMPEL MINING LEASE FOR LsrE
COMPLY AGREEMENT TO
SHIP ORE over LINES or PLAINTIFF

After the old Hercules mill al Burke
WAS burned in 1910, the company
found it necessary to seek more de-
slrable location for a new and mora
rretentious mill. This was found on
land owned by the Northern Pacins
Railroad company, Just below this
city, and within the yard limits of the
railroad company. In addition to the
desirable location, the Northern Pa
ciic also owned valuable water right
conveying the waters of Nine Mile to
the site under consideration. Salts
factory arrangements were made with
the railroad company for all necessary
ground and the use of the water from
Nine Mile and the work of construct
ing the mill went forward without de-
lay The plan Of the mill necessitated
high line to facilitate dumping the
ore into the bins, and this was built
by the Northern Pacific at heavy ex-
pense. These facts are substantially
set forth in the complaint filed last
week in the federal court at Occur
d'Alene by the Northern Pacific COM
pany against the owners of the Her
cules mine, and which forms the basis
of suit to compel the Hercules COM
pany to sign the lease under which It
occupies the company's ground, for
the use of the water right, and for the
fulfilling the terms of "gentleman's
agreement" to ship the ore from the
mine to the smelter over the Northern
Pacific line.
Terms of the Lease.
II appears from the complaint that
the Hercules people agreed to pay the
Northern Pacific $50 per year for the
use of the property in question, and
at the same time entered into a verbal
agreement to give the Northern Paci-
fc their freight business so long as
the rates were fair and equitable. 1t
is alleged that the Hercules owners.
while enjoying all the rights OF pos
session and use OF the land and water
lease and to pay the rental agreed up
on, and has also violated the gentle
mans agreement" to route the ore by
way Of the Northern Pacific. Fre-
auent and persistent efforts have
been made IL is alleged, by the Nor
thern Pacific to induce the mining
company to sign the lease, and 1t Is
stated that the visit of the general
traffic manager to this city last sum
mer was for the purpose Of getting the
papers signed, as well as to look into
the merits OF a complaint that had
been lodged against the company's
getting the papers signed and at the
same time found that the complaint
was wholly without merit. Having
exhausted all means to reach satis-
factory settlement with the Hercules
owners, the Northern Pacific has now
appealed to the federal court to force
execution of the lease and the oompli-
ance with the verbal agreement re-
SHlullS SillpihehtS
Hercules Quits Northern Pacific.
1t has been abont six years since
the Hercules mill was completed, and
during that period up to last Macrh all
Hercules ore was SHIPPED to the East
Helena smelter over the Northern Pae-
ific. In March the Hercules began
shipping its product to the Northport
and routed its shipments over
the o. W. r. & N. This left the
Northern Pacific up against hauling
the ore from the mine to the mill, from
which it's competition takes the con-
centrates on the long and more pro-
fitable haul to the smelter. The rate
for hauling ore from the mine to the
mill is 121a cents per ton, and in order
to relieve itself from this unprofitabl
business the Northern Pacific issued q
new rate. making the 12B cent rate
a part of the through rate and con-
tingent upon having the long haul,
otherwise the rate from the mine to the
mill would be so cents per ton, This
new rate would come under the juris-
diction of the interstate commerce
commission. However, in promulgat-
ing the new rate the old ~ IL cents
rate was cancelled. This brought In
an intrastate question, and the Her
cules company appealed to the state
utilities commission to compel the
Northern Pacific tn maintain the old
rate pending a hearing on the question
and Ii was so ordered. So the Northern
Pacific continues to haul ore from the