Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1934-09-08
FEDERAL loans FOR MONTANA MINERS
New Law VIII Be
Helpful To State,
Trauerman Ayers

Federal loans 20 montana MN
ers viii shortly be available o.
q practical banking basis.
The money borrowed may b
used for mills and equipment.
The rules governing viii BE-
altered so as to make it possible
for an honest miner with an hon
est proposition to secure needed
finances.
These are the impressive facts
brought back to Montana from
Washington, D. c., by Carl ].
Trauerman, president Of the Min
ing Association Of Montana.
These facts are contrary TO the
general conception Of the propos-
ed b. r. @. loans.
The appointment of Tasker l..
Oddie, former governor and o. 8.
senator from Nevada. as special min
ing advisor on loans through the
r. f. c. is the final gesture Of
good Intentions upon the part OF
the government, IN the opinion OF
Mr.. Trauerman who has been IN
conference with Senaaor Oddie who
is president of Gold Mining Asso-
citation OF America Of which organ
ization Mr.. Trauerman is a direc-
tor.
The plan as outlined by former
u. s. Senator Charles Henderson,
member of the board Of five Of the
R. f.. G. and Hon. John =. Norton,
former Butte Mining engineer, who
developed the QUESTIONABLE and one
Of the leading officials OF the SELF
Liauidatfng" department Of the r.
r. c., has been summarized by
Mr.. Trauerman as follows:
1. Application must be made to
the ''SeR Liquidating" department
Of the r. F. c. at washington, D.
C. and not to any branch OF the X.
F. c.
2. Applicant will then be sent
a set Of five copies Of the question
aire. of which four copies must be
sent back to the self Liquidation"
department of the r. F. c. at Wash
ington, ID. C. and one copy kept
by the applicant
While filling out the question
naire may seem long job, 1t can
be readily done by anyone familiar
with the mining business and does
not necessarily require the help OF
an attorney or mining engineer,
altho II is advisable to have the
help Of a mining engineer.
8. When the filled out ques-
81 oh ~
ton, II II is found to come under
the provisions of the act, It then
will be turned over to Senator
Oddie, mining and business advis-
or Of the r. F. c.. Senator Oddie
is q western man, a man who. made
his life's success as a mining opera
tor and one against whom no min
ing man, applying for loan, could
have any objection. At first 1t was
proposed to turn over the appli-
cation to a local banker. but the
mining associations lodged COM |
plants against this, which were
successful.
4. The advisor will then go 70 /
the place where the property is To-
Gated and make a report on the In
dividuals seeking a loan and consult
local people as to the general mer-
it of the property. II the applicant
is found to be honest, etc., a local
engineer of standing, II one can
be obtained, will then make the
examination. II no local engineer OF
standing can be obtained, then one
will be obtained from the nearest
point to the property. This last
step, as outlined in this paragraph
is taken to prevent fraud or lack of
knowledge as to what the loan
requirements are and to investigate
whether the applicant has the know
ledge and ability to operate a
mine, mill, etc. In case of fraud !
or lack OF knowledge the applicant
would be out the advance fee he /
put up for the examination, but the l
government would also be out !
time and money for its work.
Right here I might say that the I
advance fee Is to be no set per- /
eentage amount, but will be esti- ]
mated by the government engineers J
connected with the r. F. G. This /
will not work such a hardship on :
the applicant.
5. II the final engineers report .
is o. K, the loan will be granted !
but the R. r. C. will have the :
privilege Of having proper manage +
ments, no unreasonable salaries, :
matters pertaining to payment OF
dividends, etc. None of the loan +
may be used for property payments h
or the payments Of back debts, but
a property in debt may obtain loan, n
II the back debts be paid after the !
r. F. c. loan is liquidated. or other
special arrangements made.
In my conferences with the mem