The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-01-10

of lead were contained in the affidavit
Of Edward Brush. vice president Of the
American Smelling and Refining COM
pany in connection with the suil
brougt by that company against the
Bunker Hill & Sullivan Mining and
Concentrating company in the U. s.
district court of Oregon. Limitations
OF space obviously prevent a detailed
presentation of the legal and contro-
versial aspects of the case, says the
Engineering and Mining Journal, but
the following excerpts from Mr..
Brush's affidavit set forth clearly
some of the selling handicaps that
, have burdened both the producer and
the smelter of lead:
The smelling business prior to 1900
had been one of great uncertainty.
because the custom of the trade had
been to establish numbers of small
smelteries, the lives of which were Of
ten short, depending upon given
mine, or at least given mining dis
trict. Their metallurgical work was
poor and their metal losses conse-
quently great.
The custom Of the trade is and AL
ways has been for the smelter to buy
the mine product, consisting of ores,
concentrates and shines, paying for
the metal contents Of this product at
the time of delivery. The amount paid
he H., ~.
generally flat price, much less than
the market figure, because of the fact
that at least three to four months
must elapse from receipt by the smell
ter until the final refined metal, in
commercial form, can be sold and de-
livered in the market. Meanwhile the
prices of the metals might change ma
terially Obviously the smelters
would pay only at rate which would
insure them against loss.
New York Prices Rule Lead and Sill
yer Market
In the metal business the great mar
ket for the United States for both
lead and silver is New York, and hence
all contracts are based upon New
York prices, excepting for the soft
lead fields of Missouri and Oklahoma,
which are based on a secondary mar
ket in st. Louis. However, as the
difference between the ST. Louis price
and the New York price amounts
merely to the freight between the two
points, this does not make a substan-
tial difference.
To sell its metals without loss Is a
very important problem in the smelt-
ing business. AS stated, it takes at
least three months from the receipt
of the ores before the smelter can fin
ally deliver the lead content thereof
In the market. Durin this time the
price of lead and silver may rise or
fall, or do both. At first blush, 1t
would seem that the profit made on
the rising price would offset the loss
made on the falling price; but this
does not prove to be the case in ac-
tual experience even though the price
may be averaged and ON the whole
the amount of rise and fall Is equal.
The effect is not balanced for the rea-
son that when prices are rising the
consuming manufacturing trade, real
izing the probability of an increase,
buys as rapidly as possible to supply
Its necessities for considerable time
In the future. Also, the mines over
produce at high prices and lower their
production when prices are depressed.
The lead and silver business, like
nearly all other businesses, such as
steel, lumber etc, is subject to per-
DDS OF depression, during which time |
the smelter is obliged to buy the mine |
product but can sell nothing. AS q |
'ue. lead is high when the country as |
whole is enjoying great prosperity
md there Is n consequent building de-
'elopment which necessitates the use
,f lead for paint and for plumbing
purposes, and of late years, when elec-
rical equipment is expanding, for
wire and for batteries.
When the period of falling prices sets
n, the consuming trade buys from
land to mouth, because it feels that
he price will go down and hence car
les no surplus stock
in Silver Price a Trouble. s
some Factor.
Silver has also been a disturbing {
actor in the business and is subject
0 wide variations which are based
ot only upon the consumption of
liver In the arts but upon it's use as
money. The price of the metal is
argely governed by London. The
Of the metal to India
nd China, which still use ii as a ba- I
Is for their money supply, takes con- /
lderable time, and hence the risks of C
andling silver are particularly great G
nd call for great care and attention. I
is important that one be in a posi- n
on to get widespread information Ii
nd to be able to act quickly upon that
formation, If he desires to avoid c.
reat losses in handling the silver d
caring product. C,
The result is that the smelter to N
me extent holds the sack" to use Il
colloquial expression. He has to a,
AXE his contracts more or less bas- eli
on the requirements of his custom sc