The Western news. [volume] (Libby, Mont.) 1933-current, 1934-05-10
Eastern Men
BuyControlOf
Zonolite Co.
Detroit Capitalists Purchase
Over 100000 Shares Libby
Mining Corporation.
TO MANUFACTURE
MANY PRODUCTS

E. N. Alley, president and genera
manager OF The Zonolite company, ar.
rived home from Detroit Saturday eve.
ming and in an interview with thu
Western News Monday confirmed tn.
report that control of the company hae
passed to Detroit capitalists Mr.. Alley
and other stockholders have optionee
to the Detroit men a block Of Their
personal stock large enough to give the
eastern capitalists control of the COM
pany Heading the group who have
taken over control of the company is
w. B. Mayo Of Detroit, who for many
years was chief engineer of the Ford
Motor company.
The Detroit men are chiefly interested
In the marketing of several products
IN the, perfecting of which they have
spent large sums of money and which
are composed chiefly Of Zonolite. These
products have been perfected to high
degree and are of such nature that
1t IS believed huge demand will be
developed for them. The eastern men
have long been engaged in big business
enterprises and are feeling their way
carefully in developing this new enter
prise.
Interested in Developing Markets.
These men are not SO much inter
ested in the Zonolte company itself"
said Mr.. Alley. Their object in secur-
ing control of the company is to pro-
tect themselves against any future
possibility of being deprived of their
raw material. BY obtaining control of
the Libby company, they are assured
q continuous supply Of raw material.
Their chief endeavors will be expended
In developing market for the prod
ucts they have perfected"
DO you expect to remain with the
company Mr.. Alley was asked.
Yes he replied THE Detroit men
asked me to remain in charge Of pro-
duction here and / agreed to do So
Much of the business will consist of
the shipping of the raw product to De-
troit and other eastern points where
calcining plants will be built for the
treating of the raw Zonolite. The local
plant will be used, as heretofore, TO
supply the demand in its immediate
trade territory.
Over 100000 Shares Sold.
Over 100000 shares Of the 10000
shares issued by the Zonolite company
have been optioned 70 the Detroit cap
italists All shares were optioned on the
basis of 20 per cent cash down payment
at the rate of ST a share, which is par
u1l1fo. On
30 per cent at S1.20, Nov l, and the
remaining 80 per cent at S1.30 Feb. /.
Order For Fort Peck.
There is an encouraging improve
ment in demand for the product, said
MIR. Alley. An order for two carloads
for use at the Fort Peck dam has al
ready been secured and it is very
probable this will develop into an order
for about 30 carloads 1t is to be used as
a dry fill in houses under construction
at the dam. Other new business re-
Gently obtained--in addition to the
regular volume of business-compris
an order for 10 carloads of raw Zono-
lite to be shipped to the company's
eastern distributors, said Mr. Alley.
The Zonolite deposit was discovered
by Mr.. Alley near Libby about Is years
ago. At that time its possibilities were
unknown. BY long experimentation and
hard study MIR. Alley became aware OF
its commercial possibilities and even
tually succeeded in introducing it to
the business world. 1t gives every
promise of developing into an immense
industry