The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-06-27

!" advance in freight rates, eff
fective >June 25, it was real
lied that tremendous additional bur
den had been placed upon the mining
industry, one that might force some
producers of low grade ores to sus-
pend shipments, reduce the profits on
others almost to the vanishing point,
and impose a hardship upon smelters
buying ores under contract with fix
ed rate for freight and treatment. In
addition to actual and threatened
losses, the new rate has caused much
confusion and feeling of uncertain
ty among shippers and smelters which
will not lbe wholly relieved until the
new freight tariff schedules are avail
able In the meantime the lead ship
pers Of the Coeur dAlene district
have received circular letter from F.
M. Smith, general manager of the
East Helena plant of the American
Smelling & Refining company, in
which it is pointed out that beginning
June 25 freight rates on ore will au-
tomatically increase 25 per cent, the
freight to be deducted together with
the war tax as heretofore.
-~ Fix Price of Lead.
1t Is on the shipments of ore to the
smelters that the mine operators will
be hit hardest, for it is a straight in
crease with no offset. On shipments
of lead bullion to the Atlantic coast,
however, Mr. Smith points out that an
agreement has been reached with the
war trade board by which the price of
lead is increased from 1925 per 100
pounds to $7.S7h per 100 pounds,
which practically offsets the increase
in freight on lead bullion.
Mr.. Smith also takes occasion to
explain the necessity for raising treat
ment charges, which he says is due to
the high prices of fuel fluxes and all
supplies entering into the smelling
business. The letter is one of unusual
interest and Importance at this time
and is here given in fhll:
Advance in Freight Rates.
"As you are doubtless aware, Mr..
McAdoo the director general of rail-
reads has issued an order to all rail-
roads under his control making 25
per cent advance in freight charges,
effective June 25 1918. This advance
will affect not only ore shipments. but
practically all commodities. This Or
der will seriously affect all smelling
companies, inasmuch as the increase
W in freight rates covers practically
everything used in the smelling OF
ores, including coke, coal, limestone
and other fluxes, as well as smelter
products, including bullion and matte
shipped to the refineries 1t is per
haps unnecessary to say that this in
crease ds a war measure and is made
necessary by existing war conditions.
Our operations are now being car
ried on under very great difficulties,
owing to the increased cost of all ma
terials, shortage of labor, ETC., and we
are quite unable to bear the additional
burden of the proposed advance in the
freight charges. 1t will, therefore. be
necessary for us to make these In
creased costs charge against the ore
shipper. Practically all of our ores
are purchased on the basis of treat
ment charge, delivered at the smelter
and 1t has been customary for us to
show the freight deduction, plus war
tax, as separate items on our settle
ment sheets. When this new freight
rate goes into effect on June 25, the
freight rates on ore will automatically
increase 25 per cent, and such in
creased freight charges will be deduct
ed, plus war tax, in the same manner
as heretofore
Effective June rs, 1918, the freight
on lead bullion from East Helena to
the Atlantic seaboard will be increas-
ed from $1O.15 to $3.50 per ton. This
increase of $685. per ton of lead must
he charged against the shipper in pro-
portion to the 80 per cent of the lead
paid for in his ore. In view OF the
fact that it takes several weeks be-
fore ore received at the smelter can
be smelted, and the resulting bullion
shipped, we are obliged to anticipate
this increase in the freight rate on
lead bullion, and we have, therefore,
for the. past 10 days, been deductirg
the proportional freight on lead con-
tents Of ore shipments which have
been settled for during that period.
For the present we are showing this
as a separate freight deduction, pro-