Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-05-11

in letter from Senator Wheeler
to Carl Trauerman. president of the
Mining Association of Montana. The
recommendation was made by Sen
ator II. H. Schwartz of Wyoming,
head of the subcommittee, in a
letter to Senator Joseph F. Guffey
of Pennsylvania chairman of the
committee on mines and mining
I'm view of present conditions
and records" wrote t r
Schwartz, your subcommittee is Of
the opinion that the expense Of
conducting an assay office at
Helena will he more than reim-
bursed by the fees received, and
that there is real need for such
office
your subcommittee recommends
that the bill be favorably reported. ="
If the committee as a whole APP
proves the bill. it will go before the
Senate for final consideration and
debate. Mr.. Trauerman is hopeful
that it will come before the full
committee before the end Of the
present session of Congress.
The bill authorizes establishment
and maintenance of the assay office
"for the purpose of assaying ore
and purchasing gold, and appro-
priation of such sums as may be
necessary to establish. equip and
maintain an assay office, and to
acquire land for construction or
rent of building necessary for he
proper functioning of such an
office"
The matter was brought to pub
lie attention several months ago by
August Grunert, secretary of the
Mining Association of Montana,
while attending a meeting of he
Madison County Mining Associa-
ton, at Sheridan. Mr.. Grunert
pointed out that small assay offices
were established at various points
throughout the West in the early
70's, but that through an economy
move by Congress in 1888, several
of them were closed. including the
one at Helena, on the grounds that
the small amount Of gold received
did not justify the expense of
maintaining the office. other
offices closed included those at Salt
Lake City and Boise.
Since then, Mr.. Grunert declared,
the gold production of Montana has
increased more than 800 per cent.
In the meantime, operators are
forced to send their shipments to
the nearest mint (Denver). paying
express and insurance charges on
the same They are also put to great
delay in receiving funds for their
gold as compared with the brief
waiting period when there was an
office at Helena. Many of the
smaller operators are working on
limited capital. he pointed out, and
need the money as quickly as they
can get it.
If the bill passes, it will be with
out the help of the Treasury de-
partment which feels that the move
is not justified. The letter of Sena-
tor Schwartz follows in part.
when the minor assay offices
were first established they were in
tended as an accommodation to gold
prospeetors who desired to have
assays of ores made by a govern
ment agency. A few years after
their establishment, about 1878. the
small assay offices were permitted |
to extend their activities by pur-
THE Treasury department is of /
opinion that inasmuch as smelling |
and refining plants have been de- |
veloped in all parts of the western /
country, the importance of the /
minor assay offices to small miners |
has diminished, and the small bene- |
fit to the mining industry resulting |
from their existence has not for |
many years. justified their expense. |
In the view of the Treasury depart
ment small deposits of gold bullion |
can now be shipped to any one of
six existing institutions, at Seattle, |
San Francisco, Denver, Philadel-
phia, New Orleans and New York,
and hence there appears to the |
Treasury no reason for undertaking
to re-establish the activities of the
ASSAY office at Helena. Mont.
1T is evident the Treasury de-
partment overlooks % that Denver.
Colo, is the nearest point to which
Montana gold bullion can be sent
for purchase and payment. distances
of from SIS to $50 miles from Mon
tana gold quartz and placer mines. |
with consequent heavy expense for
express and insurance charges, and !
% the fact that Montana gold pro-
duction has increased from 57S22
ounces in 1898 to 2O3,313 ounces
in 1898, and gold mining in that
state is increasing steadily.
''In view of present conditions and
records. your subcommittee is of
opinion that the expense of con
Quoting an assay office at Helena
will no marc than raipnihuread nv the
fees received, and that there is no
real need for such office.
Your subcommittee recommends
that Senate bill No 3115 be favor
ably reported.
Respectfully submitted
"H. II. SCHWARTZ. "