Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1934-09-15

With the prospect that the fed
eral loans to miners would be I'D
mfnistrated by the same ole
gang" of bankers, Montana miners
were very positive that they would
never be able to qualify a loan
Bnt when Senator eddie. veteran
western mining man who has made
a fortune in wrestling wealth from
the veins Of the Rocky Mountains
was named to the important pos
ftion OF chief advisor, new hops
was born.
Last week Mrs. Trauerman is
sued a statement, based on infor.
nation cleaned during his visit in
Washington. He brought back with
him a new pamphlet issued by the
government covering the rules OF
procedure. Since copies OF this
pamphlet are not readily obtain
able, the text Is published here
with:
The Reconstruction Finance Corpora.
ton will make loans under section u
Of Public Act No. All. Seventy Third
congress- upon adequate security, based
on mineral acreage to recognized ana
established corporations. indiyidualS ana
partnerships engaged In the business OF
mining. milling or smelling OF ore
Limitations Imposed ny Law
(al The applicant must he a rec0g-
nized an deStablished corporation, IN
dividual or partnership, engaged in the
business Of mining milling or smelling
fbi Adequate security must he pro-
3. Terms and Conditions
Loans viii he made nv the Recon-
structiOn Finance Corporation upon the
following terms and conditions. snd
for the following PURPOSES:
MATURTTTEs
Loans will be made for a period not
in excess Of five years. bUt NAV he
made for 3 longer period whom. in the
Underwent OF the CORPORATION. Il Is not
r-e"sscahlA 10 reQffr~ reimbursement
Of the corpor~tIon v'thin i've wears.
b. INTEREST RATES
Interest shat ~ @rte-Irlped n e""h :
rasa Nv the CORPORATION. bnt probably
will not exceed nor eant in any case.
e PTP10Sp
TIE CO~-o~atiOn win Wat" such loans
FOR the following 9urDnsss: ro
Loans viii he made to provide work
s0@ csritai pReded IN connection with
fhe m'"in~. miili~~ smelling OF ore.
~ FTvRD @spr'rAV LOANS oans
will be made TO- construction. improve
y~n~t rerR'r. purchase Of equipment. /
and for other nled capital purposes. /
ProvideN that tho mining prOrsrfies N
the analieant Operatad IN connection with
81 contain sufficient reserves OF dew
elored ore to Justify the capital in
vestmeDt.
COMMUNICATIONS will not ne made
when the proceeds are to be used to
existing indebtedness In cases
where working capital II needed and
the anniicapt has substantial Oufsfand-
ing indebtedness andior ita properties
aro airpqdy enrumhe~ad Il win ho nae-
essary for such applicant to work out
an srrangement with existing creditors
satiSfaetOry to the CORPORATION where
nv. In consideration Of new capital II
coming into the business or nerhans ,
nv reason ~ relatively small new
mont on account. eV'sting Indebtedness
and encnmhrances viii he deferred and 4,
subnr7iratnd d~rinG the nericd ~ tbn
nro"esed loan In order to provide nd
eGrate snrwritv.
d. LOANS FOR TAv PAYMENTS
An incidental portion ~ snch lOans nov Z
under certain circumstances be applied I
TO the payment ~ tqves on nrnnartfea a
which are necessary to the operation ~ c
the aunl'"npt's mining. milling. or smeit
Inc husinass "a
(el PRoMoTIONAL LOANs-The Cor 5
pOration Is not authorized to make lows | u
for purely prcsDective or DrOmot'nal nur-
nFes. OF on prOnarties IN which 0~o -
sufficient value IN 'nsuro ra~a~mert ~
the loan has not been blocked ont Mt y
least partially. II
s. ELIGIBILITY
Applications viii be received only from u
re"o~pized and established eOrpOrations y
individuals and partnerships engaged in Y
tho business NJ mining milling or sme1t- I
ing or ore. Recognized and established /" 1
as apnliea to corpOratiOns, individuals. or
partnerships. means that the business Of
nrn'ng, milling. CT smelling OF ere in
which the applicant Is engaged must | ,
have been established at such a time a
nrior to the filing Of the application 4
that snch business shall have obtained 4
recognition in the business world. The
word ore" means any native compound
rom which a metal or metals can be
rxtraeted at a profit. Thus coal and
nfher nonmetallic minerals. salts. or
other substances taken from the ground
90 not come within the purview OF this
l. SECURITY REQUIREMENTS
Section IA OF Public Act No AT
Seventy-third Congress. requires thatI
I'll loans Hereunder shall be made unon
aaequate security. based on mineral
arreareF Mineral acreage is mining b
pronertv ClaRd andfOr mineral rigbtsl on s
which there has been n reasonable amount :
9, development and at least martial y
hlocklng out OF ore. n the mining Il
property Is owned by the aDDlicanf c
a first mortgage thereon ffncluding nlsnt =
equipment, and water riehts) win he | q
required II the mining proDerfv Is held 4
ny the applicant Fnder lease either &
with or without bond or option 70 NM y
chase, an assignment OF all the a6nli
ennf rights under the lease NAV sane
times be adesuate security, although