The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-01-10
Marketing Lead by Smelter 80 Extracts
From Affidavit of Edward Brush in Case
of A. S. & R. Company VS.. Bunker Hill

the amount Oh iedu WHICH tHey re
ceived at the price prevailing on tina
date, agreeing to deliver 1t three Oh
four months thereafter. This led Il
the development of a large group o.
middlemen In New York who woult
purchase from the smelter and woult
thus take the risk of carrying the
lead until the consumer wanted 1t
The result was that they acquired
what is called spot Lead that is
lead which could be delivered imme-
diately, and they would obtain con-
troll of large quantities of this at per-
iods Of low prices and carry 1t over
until they could dispose of it when
prices were high. AS a result, the
mine got on the average an unsatis-
factory price for its lead output.
1t became obvious that 1t would be
wise for all concerned, mine, smelter
and consuming public, If the Unequal
tiles of this system could be some
what mitigated, and both miner and
smelter be able to protect themselves
To do this there was inaugurated a
form Of contract with the miner un-
der which a percentage of the price
allowed was given to the smelling
company, so that it would be directly
interested In the amount obtained for
the lead in the market, and thus be
compensated for carrying charges and
the risks 1t would have to undertake
If it abolished the old plan of selling
the lead on the day OF receipt for
whatever it could get, the lead to be
delivered four months afterward. This
general policy of the trade was en-
bodied In contracts in which it was
agreed to pay for 80 per cent of the
lead at 80 per cent of the New York
price up to $40 per 100 pounds, and
above $4.10 per pounds dividing the
price Of the lead between the miner
and smelter.
The result in practical experience
was that the miner averaged greater
price for his lead than under the old
system, while the smelling company.
being also interested, had an object in
at times carrying the lead over dull
periods to sell 1t in periods of bet
ter prices. In fact, it absorbed the
functions and the field Heretofore &C.
cupied by the middlemen above de-
scribed. But to do this the smelling
company had to make contracts with
the important consumers Obviously
it could not make such contracts un-
less it was reasonably sure of being
able to deliver the lead.
The present high price of lead is the
result Of these conditions. "a Pro-
duction in Mexico has practically
ceased during the years of anarchy
which have recently prevailed in that
country; CD the shortage of ships,
due to their destruction in the U-boat
warfare, and their use in carrying Of
war munitions, has practically shut
off the supply from Australia, one Of
the largest fields of production In the
world, and the same conditions have
affected the supply from Spain; (S)
the increased use of lead for war pur-
poses.
Owing to the advantages of long
time contracts, or of some connection
between miner and smelter, all the
important lead producing mines of
the country now have their output ar
ranged for many years in advance.
Every smelter in the business from
the years 1890 to 1898 will recall that
many smelters in the country were
absolutely ruined and that the finan-
cial status of all was seriously i'm
paired by the continued fall in the
price of silver, which eliminated in
he famous panic of 1898. The smelt-
srs simply could not sell the silver for
what they paid for it, until finally in
despair they refused to pay for the
silver except upon the price prevail
ng in the market at the time the sill
Ter finally reached the market
Now, miners as rule want to sell
heir products, which are ores, concen-
rates and Shines for cash. The risk
nd expense of selling then fall upon
he smelling company and it accord
ngly equips itself extensively to sus-
ain that burden, 1t has established
ines of information as to the influ-
noes affecting the price of lead and
liver throughout the world, and has
uilt up large organization of |
gents in all important markets.