The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-07-12
SHELTER SETTLEMENTS
FOR SILVER PURCHASED
MAY HAVE TO BUY MORE SILVER
ATst PER oUNCE-PlTT-
MAN TALKS.

Important revelations in connection
with silver purchases by the govern
ment under the Pttman silver act of
1918 have been disclosed by Senator
Pittman, of Nevada, chairman OF the
subcommittee of the senate commits
sion of gold and silver inquiry, of
which Senator eddie. OF Nevada, is
chairman
Summarizing testimony of treasury
officials and representatives. of mining
and smelling companies. and an audit
of records of purchases. Senator Pitt
man says the letter and spirit of the
act have not been complied with 1t
has not been proven that all of the
silver sold TO the government was
domestically produced as required un-
der the terms of the act
What Shelters Allowed.
The smelling companies. handling
the greater part Of the silver. allowed
The miner % cents an ounce under the
theory that there was "a treatment loss
of per cent while they deducted an
estimated metal loss of only one
fourth of / per cent to . per cent i'm
determining the amount of silver pre-
scented for sale to the government at
81 per ounce. ~ these metal loss esti-
mates are low. it must result in The
sale of silver of foreign origin con-
tanned in bullion composed of both
foreign and domestically produced sill
yer to the government
Makes a Recommendation.
As result OF the commissions i'm
vestigaton, Senator Pittman has rea
commended to the treasury a metal
loss of per cent in refining as ba-
sis of settlement "This has been the
practice since the inception of the
smelling business" said Senator Pitt
man, the miners being paid for %
per cent of the silver content of the
ore on the theory that AN average of
per cent was lost in reduction and
refining So-called treatment LOSSES
and gains are based upon estimates
made by employees and managers of
plants. who sometimes fudge in their
desire TO show greater gains or small.
er losses.
On the Safe Side.
THE smelling companies stated that
il was necessary TO fix an arbitrary
average of per cent estimated loss
so as to be on the safe side. Would
the government be safe i'm accepting
any lower estimate in buying ore from
the shelters, than the shelters are
willing to fix in buying ore from the
miners? The treasury is commanded
by law to require proof of the Ameri-
can origin of the silver and in the alb
sence of absolute proof, it is its duty
to fix an estimated metal loss that will
insure that the government does not
purchase foreign silver"
Difficulties in Way.
Senator pittman referred TO the i'm
practicability. If not impossibility OF
the government checking up the est-
mated losses and gains at individual
plants and said the per cent deduc-
ton should be Rfoportoned between
the foreign and domestic silver pur-
chased "The smelling companies can
not be injured by this method. as it,
they have amy gains over the per
cent deduction charged the miner
they have the open market ON which
to sell such gains" said the senator
Representatives of smelling compan-
les by their past actions by their
customs i'm purchasing from miners,
and 10y testimony before the commits
sion. showed that no less deduction
than per cent of metal loss is safe
basis upon which TO buy silver In ores.
What 1t Should Do.
THE treasury should hold vendors
of silver to settlement on the univer-
sal and accepted basis of per cent
metal loss"
Subsequent to the hearing com
pany selling the second largest amount
of silver under the Pittman act has Of
fered to settle with the government on
the same basis it settled with the min
er. per cent metal loss. Should the
treasury adopt Senator Pittman's re-
commentator for settlement it viii
mean the purchase of an estimated ad- |
ditional amount of from to million I.
ounces of domestic silver