The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-01-06

cOmpanys plant at Tacoma, Wash.
HEY did not while there investigate
mining properties of any kind for pur-
chase. While in Bolivia they became
convinced that it would be to the ad-
vantage of the company to add the
smelling of tin to its other smelling
activities and upon their recommen-
dalton the company built a tin smell
ter at Perth Amboy \. j., and enter
ed into contracts with tin mines in
Bolivia for the smelling of their ores
and that business has been carried on
up to the present time 1t is true that
a number OF years later an eXamina-
ton OF one or two tin properties in
Bolivia was made for the company
but majority of the board was op-
posed to the companys investing
money in any tin mines in South Am
erica. and no such mines have ever
been acquired by it. None of the pro-
perty in Bolivia SO examined for the
company, or the purchase of which
was considered by directors and OFF,
GERS of the company was ever pur-
chased by the Guggenheim brothers.
or by any member of that family. 1
deny that any demand was made by
directors of the company that the
company be allowed to share in Gug-
genheim brothers operations in Bo-
livia, or that any such demand was
refused by the Messrs. Guggenheim.
Interest in Premier Bought to Secure
Smelling Contract.
with reference to the Premier sill
Yer and gold mine in British Column
bia, the company's interest in making
any investment therein was primarily
to insure to itself the smelling and
refining of the ore from that nine
Officers and directors OF the corpora
ton, other than the Guggenheims,
were opposed to the investment of a
sum of money as would he required
to purchase a One-fourth interest in
the mine which was the interest Of
Tered 10 the company by owners of
The property. On the other hand, it
VAS necessary for the corporation to
arrange for the purchase of at least a
)ne-fourth interest, if any interest
vas to be acquired as the sellers did
rot desire to sell smaller interest.
The smelling company therefore SOL
cited, through its Mr. Guess, the head
VI its mining department. the Gug-
'enheim brothers to purchase a one
lalf of the One-fourth interest offered,
hereby relieving the company of the
ecessity of purchasing more than the
One-half of the fourth
nd this arrangement was informally
Inv oil Of
Cmpany except possibly Mr. Eilers,
nd l have no recollection of Mr.. Eli
rs ever Directing at the time or I'M
il this action.
elling Copper for Future Delivery is
Necessary.
The allegations of the petition in
aspect to sales of copper are incor-
ect and misleading. by far the
leater amount of copper sold by all
arge copper producing and selling
ompanies is sold for future delivery,
nd owing to the custom of the trade
nd the requirements of the copper
larket it is impossible for any COM
any having a large output of copper
. sell more than Il comparatively
mall part of its production by cur
ant sales, such as are possible in
Their metals Moreover the volume
( copper to be sold by the company
as included, since about the year
)OS, not only its own copper but also
)pper sold by it as selling agent for
number OF large copper producing
'mpanies, the selling agency ar
ngement having been made as part
arrangements to smelt and refine
e ores of such companies, so that
lis company receives, in addition to
= profit from its operations upon the
e, separate and additional COM
ission for the sale of the copper. The
ling agency arrangement provided
at the company sold its own copper.
gether with the copper of the COM
mics for which it acted as selling
ent, all sales of copper being pro-
ted against the total amount of
pper available for sale at any par
ular time, including the company's
m copper. The net proceeds Of the
paid to the company for
services as selling agent for other
amounted in the period
I'm January 1, 1913, to September /.
20, to a sum in excess of 10000
J, and the conducting of such agen-
proved to be, during normal times
source of large profit to the com
NY The existence Of the agency.
wever. increased the necessity and
ume of forward sales of the com
ny's own copper, and particularly in
2 abnormal period following the
tbreak Of the European war it is
lie that some losses were suffered
m this source. These EDUCATIONAL
ses were due almost entirely to the
Silence of the selling agency. The
tement made by Mr. Hills. the
nptroller, as of October 81. 1920.
ich is apparentlY the statement re-