Document bq9j8opJo452187Q6XZRQ17Z

Anaconda Coffer Mining Company DRAWER 1961 K. B. FRAZER Aaalxtant Secretary ad Aaalatast Treaaurer dA BUTTE. MONTANA December 2, 1948 Ur. i. S. S'cGlcne, Vice President Anaconda Copper Dining Company Hennessy Building Butte, lentana J / .v -- ,. " Dear Sir: Herewith, copy of report of Ur. E. C. Jacobson, Ketallurgical Auditor, covering audit of metallurgical operation of the International Smelting and Refining Company - Tooele Plant for the month of July 1943. Copies of my letters to Ur. 7?. X. Daly, Comptroller, and Dr. Horn Xarburton, Cashier, are also enclosed. 3JF/EX Enc. cc - Ur. a. X. Daly lours very truly. FOR: X. B. tl ) PNYC 00012239 N11174 y. / oUj'.jJ / i^OisbSii >11^1 vie CO-'ILT^.Z anaconda Copper Mining Company DRAWER 19 61 K. B. FRAZER Aailataat Secretary and Assistant Treasurer December 2, 1943 BUTTE, MONTANA ' ^r. lion Jarburton, Cashier International Smelting end 5-efining Company 321 Kearns Building Salt lake City 10, Utah Sear Sirt Herewith, three copies of report of iir. S. C. Jacob*cn, iletallurgical Audi tor, covering audit of setai ] urgical operations of the International Smelting and re fining Company - Tooele riant for the acnth of July 1343, Cm copy is intended for your files and one is for i'r. Floyd. Tcu nay wish to give the third copy to 'Jr. dardlae or some other interested party. This report, being the first to cover these operations, is written up in complete detail and as a result of sectional presentation involves sose duplication. Pertinent natters are summarised on pages 33 to 40, and to facilitate your review the subjects which say involve further consideration are set forth belost Page 7 and 34 - Sale of Severbaratory Furnace letteas to Aaerican Smiting and Sefinin^ Company: Under letter agreement covering the above sales, payments for silver and copper are mads on quotations for the week 120 days forward from the date of arrival of ma terial at Tacoma. Oaring this interval, the material is continued in the inventory at Tooele as though shipment had not been made and only after final settlesent Is the inventory reduced by proper weight and metal content. In addition, the latter agree ment does not provide for definitely defined splitting limits. ' In view of the agreement involved, it appeare the accounting is reasonable for the market nay fluctuate considerably in the 120-day period and the selling price is not known until the period has elapsed. The agreement, however, is cne*hat unusual and although we assume the terns result primarily from the nature of tbs material, it being understood that the material is somewhat hard to dispose of for only small quantities can be treated at one time by reason cf ths impurities, we would like to verify this assumption or ascertain the real reason for the 120-day period and the lack of definite splitting limits. Fees 10 - Ore at Stock Filet Inventory of lead and copper ores in stock pile and bins was valued on a lifo basis starting April 30, 1948. Talma per pound of lead in ere in stock pile at the audit date (July 31, 1948) was only 10.353 cents which would indicate an even lower price at April 30, 1948. Since the market price of lead for April ranged between 13 and 17.5 cents a pound it would appear that even after allowance for freight and re fining a coat in excess cf 14 cents should result; consequently, ws are wondering at what data ths pound pries of lead ore in stock pile was established. - PNYC 00012240 r t;.r; '/avjkty** iv \r liV'/sx-:** Pago 11 - Ore In Process* Frex the last paragraph It appeara that material coat of lead In procees at July 31, 1943 B&3 17.353 cents a pound, which Is the price at which it was transferred fro* stock pile and bins. Transfer price of 17.553 cents is in order since that is the price of the July receipts and there is an increment in the inventory at July 31, but, if our assumption that material cost of lead in process is valued at 17.333 cents a pound, then the cost of lead in process exceeds its raw ore equivalent by 3.323 cents a pound (17.353 cants minus 11.73 cents). Possibly the material cost of lead in process is not valued on a lifo basis, but it would appear that it should be if wo are to be consistent with practice followed in valuing raw ore and, also, our practice in applying reduction costs, which are far below current oosta, to the in-process inven tory. Page 30 - Crca frea Park Utah Consolidated Uinaa Coroany; . Ore sold to the International Smelting and Helloing Company by the Park Utah Con solidated ISlnes Company is sampled by the Utah Ore Sampling Company, a public sampler. The Sampling Company, in addition to sampling, weighs cars gross and tare and obtains the moisture per cent. The moisture content is accepted by International as are the weights} however, cheak weights are mads by International. It is our understanding that the Sampling Company provides both International and Park Utah with the sample pulp from nhich assays of metal contents are made, flo independent sample being taken by International as a check on tile Sampling Company probably because of the additional expense involved. If our understanding is correct, it appears that there is a chance of errors in sampling going undetected with resultant error in metal content on ihlch settlement is based, since both buyer and sailer are provided with pulp for assay from the ease source. Page 33 - Base Bullion Hate for determining lead and Copper Payments on Park Utah Consolidated Hines Company Contracti PNYC 00012241 Contract provides that any increases or decreases in the lead and copper bullion rates shall be for the account of the shipper. On Apri}. 20, 1935, the bullion rate was increased from 312.30 to $13.00 per ton. The contract of October 31, 1933 speci fied the 413,00 bullion rate. However, all settlement# are calculated using the old $12.30 rate as a base. Ho explanation could be given regarding the use of the lower rate. Its use results in reduced payment to the shipper of .025 cents per pound of lead or ooppor paid for. Ur. 0. A. Burt, Ore Buyer, expressed the opinion that, in view of the ams11 amount involved and the long period of time over which the 412.SO rate was used, no adjustments or.corrections be mode and use of the $12.30 rats be continued. Tou may wish to discuss this matter further with Ur. Burt. Page 55 and 35 - Repeat Assays on Combined Jetsis Reduction Company! Page 36 - Limits of Variation of issera - Combined Metals Seduction Coscanyt On page 36 the Auditor indicates that he has discussed these matters with you nd that you are to confer with the Management and advise the Auditing Department. Page 37 - Valuation of Cold: Total gold cost is divided by $34.91 an ounce to arrive at ounces purchased in order to show uniform price and simplify presentation in the statements. A slight variation in actual sold ounces purchased is caused by this practice, but the alter native is to list all gold ounces at their several respective purchase prices. If ' lots of gold purchased and prices paid are not too numerous it would seem that it would not be too much trouble to list them as they actually are, rather than follow the present practice. Page 37 - Sampling Ore Costt Sampling costs are not included in cost of ore in stock piles at lead Plant and Sulphide Concentrator presumably because when this ore is removed from the stock piles at a later date it is again sampled. Thera is soma Justification for this prac tice inasmuch as, if sampling costs were added at the etock pile and thus included in cost of stock pile ore going into process and this same ore was in the in-process in ventory and cost of sampling again added, the inventory could be burdened with two sampling costs. However, it is recognized practice to charge purchased ores with sampling costs and to inventory such sampling costs. Page 40 - Consignment Stocks of leaded -Cine Oxide; Jiinety thousand pounds of leaded zinc oxide were consigned to C. I.. Duncan Com pany, Los Angeles, California in August 1947. Sales of 22,900 pounds were reported in November 1947, but none have been reported from December 1, 1947 to July 31, 1943. It is our understanding that this product does not have the ready sale that dsleaded line fume does and possibly that accounts for the long lapse without a sale, but, if there is any doubt In your mind of the existence of this inventory and you think it advisable, our Auditor, who is now at the Anaconda '?lre and Cable Company, Orange kill, could go up to Los Angeles and take an inventory. lour comments on the foregoing subjects and any others which you may have relative to the report would be appreciated. If convenient, the next time a metallurgical statement is prepared will you please have a eouple of extra copies made and forwarded to Butte for our files. Tours very truly. AJF/DK se - Sr. D, 3. Hellene r. Af. . Daly Pogscn, Peleubet * Co. PNYC 00012242 INTSKNAIIOHAI SKSLTIHj AKD HgINIMQ COMPACT. TOOSLS PLANT - TOOELE. UTiH' JULI 1948 ' IHDEX TO JULT 1948 AUDIT Synopsis of Plant Operation Copper Plant: Accounting Procedure Shipments Inventories Lead Plant: Accounting Procedure Receipts Shipmexfcs Inventories Slag Treatment Plant: Accounting Procedure Receipts Shipment* Inventories Sulphide Concentrator Plant: Accounting Procedure Receipts Shipments Inventories Errors and Discrepancies General Remarks and Conclusion V*<V ; ' Sses&' r* V 1 to 4, Inclusive ;; - ' 6 to 8, Inclusive : .,*4 *; -. * ' 9jtoi8/. Inclusive >'' 4'* '* & ; ..-18-to`15, IndusLve * r 1 *.. * *'* * *'r '* .. . ' Si . . :**>. ...,. E4to ES^IaoluaiT* 26^toj!8, Incluir 30iio3lJvXoeluiT , i.> r: ,f. . 31.to 52/XllcluiT ... T^-'-^V ,3* to 'Ap^IaclueiT* , (K-. ;T rV.r`6' PNYC 00012243 N11174.02 INTERNATIONAL SMELTING AND RgINISG COSUS' ' TC0BI3 PUNT ~ TCDELK1 UTAH * JULY 1946 . S7NQP5IS OF PLANT OPERATION ; A- . -Ji Tbs following synopsis has for its sources (l)`a paophlet. entitled.-.^InternatinMi^Smslting^Coapany,. Tooele Plant, Tooele, Utah,* prepared for the members of the American Inatituta-ot Engineers, September 1, 1925 (2) thesis of Ur. Paul H. Playd, son of Hr. F.?H. Floyd^Chief>Clsrk^vzlttains!s r- part of requiredenta toward a Bachelor of Science degree in .Metallurgical IngineeringV.aad-cl5)ipaperjbyiHr*' H/ - . H. Rockwell, former Superintendent of Lead Plant, entitled "Tooele Slag Treatment and'Deleading^lant*.*'-From ' observation of the plant and inquiries nrde by the auditor data hat been reyised t<^';*ffect*aaTup{to '.'date*deA - * ' cription of the plant. . - ` -&-V';1 'Sji '?'/ The Tooele Plant of the International Smelting and Refining Coopany is located^.International,''.Utah, the terminus of the Tooele Valley Railroad, five miles east of Tooele City and thirty-fi^Jmiles.soafcbiest'af- Salt Lake City. It is a customs smelter and consists of (1) a lead-zino flotation coacentrator- {8) lead aa*lter. and (5} a slag treatment and deleading plrnt. A copper amelter dating from August 1910-discontinued operations-' during 1945. The lead smelter started or^rntions in February, 1912) the Lead-line selsctiye flotation in Sovem-. ber 1924, and the slag treatment plant in 19*1. . . V . . ' ` ... All ores are sampled at the plar.t:s saurple mill for the purposes of ore settlement, and determination of the smelter treatment that is to folio*', the only exception being those already tabled at the public sampler. .. . .. , A major portion of the ore and concentrates is delivered to the plant by railroad,- the'only,exception .. being a small amount of trucked lots. "Railroad* ore is weighed on a Fairbanks typei"S* .track seals mad Is then ' dumped into temporary storage bins to await sampling. These bins are designated alphabetically from ."A* to "S", ' inclusive. Total capacity of these bins is approximately 3,000 tons, capacity of bins varying freo. 100 to 450 tons. The lead-zinc ores are received mainly from Park City and Bingham, Utah, and frea Colorado, Nevada and Idaho. Lead ores are received mainly from Tiutic, Park City and Bingham, Utah and froaXdaho and Nevada. The . ore is conveyed to the sampling mill from the receiving bins by conveyor belts, crushed,.mixed and a representa tive portion automatically separated as a otriple of the lot. After sampling,.the...cr.M.-ax^idistrituted'\by. belt .; - conveyors and railroad cars to Lead Plant bins or Lead-Zinc Plant bins, ill.in the iiltej*'yards..-.^TheVlead,cre.'. , is shipped by belt conveyor or cars to Lead Plant charge bins and the care,of|Iead^^^^^^^^are^|3au^^|.o^ths,jpjt. -.. concentrator and dimped into receiving pockets there. SULPHIDS CONCENTRATOR .. .! "T " The concentrator was acquired from the Utah Consolidated Mining Coopany,on1^April^l,' l94, at..which.,.';\r r.`, time and u.p until November 1, 1924, it operated on copper ore from Bingham.;c-Uus.to,:i^poor.^eopper market and.*-. .O . - ... due to experimenta'l and' research work d' one on concentrat'ioni of lsa<Wtiac-ilyer:oXS^be-jdlstrl0t7s1&b<plant` was remodelled and operations were started as a custom lead['-zinc coacentratorjda-Novssfcf^l^l^^pritX:*^4^ * ' pacity of 500 tons per day. .1 second unit of 250 tons per day capacity-was-'put^in^operstloniFebruaryjith^,1.925?> which was Increased to 500 tons per day on Hay 1, 1925, since whlioch time ^tbe^CMcej^^i^w^ *v ea ch of which may handle 500 tone per day of lead-zinc ore. Briefly, the operation consists of crushing and sampling the ore. as i above Jisscrlbed^and to.afconsidsr- ' able extent bedding the different ores prior to sending them to the concsntrstor.-iJfi'ordss^t^^sintaiaVas uniform':: , a feed as possible. Standard practice of ball mill grinding md class ification>^`^foll^ed8andithen*with -differ- '\t- ' ent reagent additions, series recovery of the lead, zinc and iron is jaade'inj:respeq^ieJfincentrates|jhy"flot*tion >^T-4 alone, as well as a final or mill tailing which goes to waste. The oon.eeotratorflic^^m^d^a;,tw^separat^and.,a ^. ^ distinct sections_, both identical in the ggrriinnddiningg'circuit_, but differ!^ InVtbe..s. fl^^io.n^cirjuit.'^he^or^sjTare^1-^ - ' . treated in the section or combination of sections in which it has been 'found- tbs/;*-,--,-- la:;baat;adapted`a* re gards metallurgical results. The lead concentrate is sent to the Tooele Lead"Plantj?li'h1< " concentrate -to' tbs *' .. Anaconda Copper Mining Conpany Plants at Anaconda and Great Falls, Hontaaa, itnd .ths' * ^oncentratss/to the Tooelo -I: Lead Plant for fluxing purposes. The tailings are discarded. ......... ' .... Assays of feed and products are about as follows* Feed - Lead - Irco - Zinc Lead Concentrates - Lead Zinc Concentrates - Zinc Iron Concentrates - Iron to.f/jR 6!stor10* "10 to^rl2*: 55 -t4# 50 38-to . This concentrator Is especially unique in that it is treating a varying i many mines on a strictly custom basis, and making a three mineral separation-;and coi alone. J P.... - ofN'lead-zinc: ores .`from * * - ` *" mvthem ter*flotatlon .. PNYC 00012244 i':;- i - . hM< -rt NTUVi i fldf mAh. STUCFSIS CF PLANT OHRATlOtS LEAD S1EL1BR ' Load oreo are received by belt conveyor and railroad cars from the w steal charge bins having a capacity cf 13,000 tons. These bins are diTided into:twoseotions, ione of-Yihich coxy cain* the materials for making up the sintering plant charge and the othar tbttrwj|niKM;' e* o l;-i'id-*'J,iiit,r u *,d \ in making up ths blaot furnace charge. : Practically all of ths fine outexial treated at the lead plant,/ucb'.'aji ^cpixcei^.ratee'^f.lue/dArt, eto**, ^' Hires uintering to agglomerate it before including it in the charge for tb_'blart^jfurna.Ce'.^Therf^are, 22'aia- . . ing plant charge bin3 each having a capacity cf 120 tons of ore or 240.:tona''ofiactntrates,TH^r*ctly.'blowA ;3" 3 bins is tho charge floor. The various materials for the charge for theI'eiatsrii^pLast`a^ei'drawn, frai the.' s by mechanical feeders adjusted to deliver the desired portion of each tO:*tbeltvnonv7DrlirtiichfdtfChArgM'>S,i v'; From this they fall on an inclined conveyor belt leadlog.'to;the feed'floor^pfath sin-'^Y charge is distributed to the five-ton feed hopper above; each^aacMn>. U: ' * ' *_ b` . ' >r ;.. :f There are ten standard Dnight-Llovd ointerlng machines. The charge,,,-!* mechanically apreaA .'1 n~:\ -jfch< e> layer on s traveling grate. The surface of the charge is ignited by natural1 gaj*burnsrs in-a fire box`"spreading the width of the grate. Ignition is maintained by the continuous drawing of air.through the ignited bed.by mean of euctJ.cn boxes connected to a Sirocco fan. Sulphur Is about 12% in the charge and is roasted down to:abouV 1,2 in the inter. Th* material fuocc slightly rod forme a clinker-like mass which i*'discharged at the'ead of the machine aid falls into railroad cars. These cars are hauled to the blast furnace..bins and the sinter dumped there in to form part of the charge to the blast furnace, Ths gases from the sintering.plant are passed through a o^oiature chamber ani then to a Cottrell precipitation plant whore much of the dust they contain is deposited. The Cottrell catchoa about 65^ of total dust collected. The gases pass through a flue .to a. brick stack IS feet in diameter and 200 feat in height. The ccttrell dust is returned to the SinterrPlantf^.?:Y' . : .->yt. ' > i;- The Blast Furnace Plant conriots of five lead blast furnaces 52* to 55" X'llflO" at the tuywre'line, Sach furnace has 25 tnyeros. The holght from t ^re line to charge floor is 24 fast`.6 inches. The capacity, of each'.of these furnaces in about 550 tons, total charge per 2"4 `hours i.n...c..l.u...d..i.n...g....d. ump o.lag and.....r..e..t.r..e..a...t.e..d....m....a...t.e...r.i.a..ls. A...t...t.h..e..... present time only one furnace ia in operation. -- ,;i3 *: #: r - The chrrge cars have hopper bottoms w4iVth.S >bvoitt.tro.rtm/n hinged Hdir--o-.tps doors at%n4l...>a--re^^lectrical1lyipperated,_ -; They .- ; are of the same length as the blast furnace. Hie bins from which, the charge' carSjfarejtloaded are^northlpf .the vlv' sintering plant charge bin section and are 30 in nuufeer, each having a capacity/oMjiO^tonsV i lach .ee^/of Z bias' , is equipped with a swing scale hopper having multiple beams for accurate t^ighlhg&|h* ingredients tovthe -blast, furnace charge. Ths constituent materials are dropped into the charge'CAT,- %ila{tzr*otioa, thus bedding .the': ' " chcrgo in the car itself. The car is run over the flirriace and the.charge..l4roppedjthyreiai rThe.!charge'voonaiete;.of coke, sinter, dross, lima-rock, siliceous ere and scrap iron* . -Y ' '' -**' ' The gases from the blast furnace are drawn off just below the ;ch*rge|VT10oriand; enter ^cylindrical, duet catcher,, tangentially. These catchers are 20 feet in diameter and'18 fet;in'.`hel^^^Thefgases 'are'discharged . - ' " from this catcher into a steel balloon flue 499 feet long, whence they.arev&r^edHintQ^tbe^ba^iouse-by^a'Sirooco fan with a capacity of 190,000 cubic f set per minute. This brick bagbouse containsTj,440rcylindrlcal' doth bags 13 indies in dioneter arvd 50 feet in length. The fume from the gas Is .shakentfrom-the-'inside ;of .the bags by re- vers ad of the pressure on the bag, causing it to collapse. The fume falls.into `i'pitsl'froo. `which it isyreooved- '! periodically, either being shipped to Great Falls for recovery of;cadaium.or,:retaiu''to>thablast.furnace as' ' part of a fresh charge. The filtered gases from the 'b--agbo--u--s-e--------- ---'--r-L*' --^ the -earns stack into which the sintering plant gases are recei Slag and epeiss are tapped from the blasft f<u!>r,na,ce Iinntfo, 1large 7aoviaMbLtkeiiTq^^VeihaaeiaHrKths~?yAinn1*whi^clsh servpTa*orat. 4tiro>nn is made by gravity. The purpose of the forehe&rth is to allow the slag, spcLss andysmall amounts..or entrained metal lic lead to settle ijito separate layers due to difference in specific gravity tadx'lmmiacibility.!vThe slag over flows from the forehearth into a second settler and from that into 7 ton mlag potefjihich are taken, to. the lag . Treatment Plant. The speiss is tapped into pots, granulated, loaded into- cars,^sfe>5^d!ai,.stook pile 'and period ically treated in the old UcDoug&U Roasting furnace for removal of. areeioio. ^.^e^fMu^tiiig'vCalelne isVretumed to the sintering Plant . The small amount of entrained metallic lead in':the^slagfisHappjedMjitoia^lead^ladle and - tak.e.n..t.o..t.h.e...d.r.e.s.s.in..g..p.l.a.nt. 2's-sa^^plWitiSiff: Metallic lead is tapped from the blast furnace into three-eubicvXoot|hoxilsaL^pots and taken'to the " ' ~ droesing plant where it is dumped into any one of four 60 ton droesing kettles.^Inl^^se kettles the lead.is v agitated with compressed air introduced by raan3 of s pipe into the bath^Whe^a^d{5|fts'.layer.:is formed an inch or so thick, it is nkimmed off the top of the l#3d bath by means of a-sieve ladle^ojfaxaiedibyc'aviBWio-rail^orane, ' The ladle is set over ar empty drods kettle and any molten lead is allowed to* drtlj^trtffiEElhe .drogsd.o theAladle is * then taken to the Dross Reverberatory Plant* : >^*''' ' " 'v The mschanical dressing continues until there ia little or no.^dross -f^raSj^^dl^ducMj!thevcopper content to .10 to .15 per cent. When the first drossing is caaplete the 'ballioiiilAfJttmped^Jitianhne'ofltwq 120.. ton kettles for the Hulst process. In the 120 ton kettle the lead is agitated^y.fispeliiriyj^T^- - ' ' PNYC 00012245 . . . '.,. v-wp ;.< - :&: C; % v. . .; ^;Vr?~r.v>- .-. ' < ' -w; P;v&- v - Y YYy^Yf^; m mm %rw LEAD Si-SlTSa . when the dross becomes st operation* Aft*r <.* dressing opcuv-iM'-in i'.-.I/Ls for ehlorre it tr. t>. separata The drooa is skinned in'aucbit] -` `;;riv*9) Mtr* *V`: i?tf 1,4a 'la- . iiw.m-ot-.*"' , . .!< ________ i-cn'.rif gal puop is placed over tbs>'drowsing-;kettleleivdHheJlead is .puxp~ A-.'-vic - Smeiting and ReXlnlng Compaay'.aJ, ;Omaha,- Nebraska, for-refining. . -. Tbs Lh '?:* iievorberit-.ry PI r-ot :' 7*.j? the dross from the Crossing Pl^V'and producss three products, .rati5^ -r.rci.3? v.nJ. j*ad. The :s'tte 1* *old t;.e American Smelting and Refining Coip'4n7>=dhe spei3s-;is.;period- ; call/ treated ' the Copper Contrertin Pl^ for recover/ of copper tuxl'the ^.takea bat^fe the: Dressing Plant. ?L.V? TitSATWT A.--P OSCRADINO PLANT The 33*^ T'-e.'itment n-M. ; n oor-;tjcu in September 1941* It has an average daily capacity of 332 tiv.i'-. ir.d treats rolter* sla^ zl "Z -. ' r^-* cro end zinc flue cleanings* Molten slag cooes from tbs lead blast. c*. Cold si ft* is wined fr-,n tsl3 i-w-.\ slag duirpt, in which there was, in 1939, an estimated 300,000 to 400,000 lOiV-i of ulng thftt oou'.d be profitably - rented* Zinc ore added is an oxide ore running about ISjt zinc** Zinc clean ings cocw from the furnace domvmks vrvl caafrusbion chamber* Charges to the fuming furnace are composed'of .10 pots or from 10 to 50 tons of anterial. A charge varies from 10 pots of het slag to 7.jx>ts"-of hot slag and.>3 pots of cold material. The hot slag is chnxgtd ns toon as it is tapped froa the blast: furnace, ' , .< , ;'J ' Ccrv.tr vi-Lon of the ;Oor*t ortanr.. It ' v tr oC (l) * '-.'i ystnm, (5) Ot^ncocs fan. (6) b v.'.-rv raodnled after that of the Anaconda Copper Mining Company.at East Helene, in5 -:.d pulverizing plant, (2) coal feeders,'(3) furnace, (4) primary flue nd ;?1 de leading kiln, A very brief description of each .follows: 31'*iik coal is dunped Into .-rtcM bins having about 100 tons oapacity^Vjlt&s^dried, la .aiBugglssrColos .. - dryer end i3 fired rith gas. The dri-d coal is discharged into a booketV.elevatorj^ibich', elevate ;J$lO-ton \ . bin above the pulverizer. The puivsri/dng is done by * Raymond Mill^ebich .grlh<tal^^5^Ks?ps^ui^'pie-coal V *" is blown into a v.'llector which delivers it to a 40-ton storage bin'directly.^h^e^^^^s^`fedsr;taiiics', . v'' Tr.ft fi17a co.nl feeder ts^-.--.,kk- '\\}r\ have a capacity of about' 3 tons' saeb^nsfoonaected to the`40-ton storage bln rith 6 Jru'.i pi;*.' valves thrriuU^4h'h *-;iJ<h the foadar tank* are filled with',.ooallv!'.:Ser*w feeders, which can be operated at variable speede, ci*e .countted on the hopper bottom of each.t'ank;.nd<1delitar the..coal_tO; aa/air injector* t T>.e air injector naLitains a pr< saure about one pound higher thm the back.'prfssur^ ffrom the '-furnace,yand this pressure differential carries th o coal from the screw feeder through..tht at~^;^- tho furnace and thence to the tuyeres .' The furuji is di&ped liko > laarwge* r*e<c*t.ajinnyguul.lnair retort withh wat.e..r.-.'.J..a..c.k. e_^edi^idssj^topV'ajjntvdH ' rdlnowwnntt.a*Wke*.I* ITtfe-. . 1c 8 feet 'iid^., 13'feet long and 11 f-et 4 incheo high to the bottom of. the Chargec-J^out'^ .buVdJi'^i^faet, high, to the highest port of the water-Jacketcd t p. The downteke,, *ich'oonducte.it^ he^fui^iiuieQ^gasiif from .^ha/furnace into the flue system, is a Test wIiddae, 8 feet high and 30 feet long.aannd h^saela|a^'r*Jh^g^5jia/^o0lcksrtt.'>'rf444''''incbhesa..high across* the furnace connection to keep thoo s`lag f*rom sp*las.h..i.n...g....I.n...t.o.....t.h...e.......w......... nta- ke^;.^xw^inte'g^ed byvMr. (Alexander Laist cf the Anaconda Coopppeer Mining Coup any Slag Treatount' Plant^at^ur^^lana^^lbntana^Jar^doubie-ii '* inlet type having r. connection for both air and ooal, mad are watsr..'coo^e<i*!!.^^^^^^^|j,' *K The dorr.take connects thke* u..ppi--p.evr. pn --e--r(t of *thke. furnac.e. --p--r--onp.s--r *tto'ithe..acaoiamW--^r^J'4-^Ajonnt1kdi.a--okj^.a6r.Ir|*?^^Vhie-- i;.dkita.akb.swr^iA$.V * ` equipped with 102 sprays which can be used to cool the gases when atoessary* )'AVa^ss>qf hingsd^doors'*om each side pciuit the dust to be scraped out t:3th long handled hoes. A steel moisture;ehamber^4&ifeet^losg'-is.connected'to. . the brick colocati-on chamber by osans of- an expans-ion J- o-in*t* Tnh_e.mo.ist.ure^- dum;^-=i e>vSi ^.ho ppa--r.''bvo"*t.tc.'1m-edj^fX- Ld is *. ' oqaipped with 48 spra^* Between the moisture chamber and U-bnbe coolingJseotioi *"15. fst `rofl.baliooa*' flue having an area of about 114 eq. ft. Ml the dust froa the balloon flue-and uaber is|cisansd- into tracks or mine earn and goes to the deleading kiln as part of the seco^dary,*^ r tube .pooling ]3ction is 120 feet long and is made up of IS U-tubes 55 feet high and 37 3/4' inchea'inijU^gsi ^^\[*eansJof ra canter partition running lengthwise of this section and 3 dampers, the gaa'is ^l|jjdiey^'8^tubes. at a time* To keep the cooling effect of thio section at maxima efficiency^tha-i. -f^'urded<iriih',w^oden - mallsts twice each shift on seven different levels, each tuba bsing>bitl<}itol: .each!ileTel^^rhe diet falls into hoppers from where it is drawn into small cars and makes pp Ipactv * yiXesditOkithetdsleading - kiln. l "`VL^~ -j.:, The bc.:hcuse fan .is located equi-distant from the outlet of ths.LD-tub.e^ai^iihs.ii^^i*.the.^aghouee header flue. Volume of gas handled varies between 110,000 and +12,000 ';^ft^^^^^s;:u^^^^^Boaditioas. There are two parallel bagheuseo, each having 294 woolen bags; 18:.iachss<fijj34iaaster ajjdvfiO-^tet long. The bags are shaken wi.t.h....m....e..c..h..a...n..i.c..a..l...s..h..a..kers which rai'se and....t.h..e..m.....d..r.o...p....t.hel"bag^,.*1'"l4iM^s^c^^sTo3atiorui-: The bay, or pit section of the building receives the duet which is removed b/^a pnsumatlj ~~ ;<?oaTViigsystam* Tha * dust discharges into the deleeding storage bins above the kiln* ^ . PNYC 00012246 I`5:;.#'^4. v S'- :! :W$i- If. sehopsis of plant opsratioms liLVl TSSATi'Srr ASO 5SI5AD1H3 Ylk (Continued) * The >ini cling (rotary) sila ii Td ft* 6 in., long &ad ? feet in diamete^andfiV^'fi; . The sSr. de discharges i'i'usi Ibis kiln into a coolar. From the cooler it$j^e^T*te^^to^*5ril>ratiiig cr.-i i:; r)..\ i^nit Tilth a z:r>"iV. set of rolls. Scroen tndersise la. carri*d't^'*:f$cOTeyw"bsi5|io^r4il-' .d c-ara for rent to a sin** report plant. The lead fume discharges into thi^co|B^f^ba^haatej^^ofctbe *-* rondary circuit The combustion chamber discharges into a 122 foot balloon. bot oma for the r e:rival of the furte into hand-trawoed cars. This chamber. teralJi*tes^St)^*^jMK^tipi^&kfj-h#^3',oi rj0/' Uto-truabielsropardevcioaurss!fodrerseccriibrceud.latiAonsetpharorautgehvathcuoumsinsytestreinmgisplaunset do.rfofrotrhsishipsmeecntti`oton,'\,ctoi^aesu^nueir^s.i;'1b^^^j55>dr_'` *r* . :' ' - y *''-'' :. rMl< *./. ; -?' :* . .Jo. *:.***.tv x*it ii.f' fr*-. :.4, intshmahohal smelting and repining compart: -T-O--O---S-L--3---P--U--N---T--------T-O--O--B--L-S- ..---U--T-A--H- -fir. JULY 1948 ' ' . ` A??* CCFPSR PLANT ACCOUANcTcINoGunPtPinCgCKrHeJcRoBrdFsORfoCCrPtPhgeR PCIo.ApNpTer Plant Mere designed to shoe as, far as .possL^^^^^^stto^^'sr'atiiwii and the valuation of inventories. Ultimate determination of profit, under operating..ccnditiTonsi-isas.'not available due. to lack of information on final sale of finished metal. Estimates sere, however, prepa^redland^sre yat. prepared, although the plant has not been in operation since June 1945. Present estimates are in., reality final when all sales are made in the West and actual revenues are available. The following cosmant wl *1} briefly:revisw the1* accounting procedure as to (l) receipt end cost of materials* (2) shipments and sales of products.t'and';{3).iD-'. ventoriea and their valuations. . ' ' '' " (1) Receipt and Cost of Materials Since cessation of operations in June 1945 no materials have been purchased for treatment* All original materials on hand have been disposed of* " (2) Shipments and Sales of Products '' All present shipments ace from by-product Inventories, The products .available for sale are V reverberatory flaraace bottoms, reverberatory flue dust, roaster furnace.bottoms.,aoi.roestar.,flue, dust, the last two being designated as "NcDougall" bottoms and dust* Sales h&veibaenLmade'ln..the/p4sV to the Anaconda Copper Plant, the American Smelting and Refining Conpany at Tacoma','v-]Vashington, and tbe':;Tooele ' Lead Plant* Sales of furnace bottoms and flue dust to the Anaconda Copper'Plantare ...by letter agree ment* The Anaconda Plant has indicated that due to arsenic and other iapuritiss in'the .material.it, ' cannot treat more than small quantities at one time. Otherwise tbs copper.'.aaodes would .be^toc .eon-v tamlnated with deleterious elements. The sales to the American Smelting.snd fisfinirtg Cos5>any are;also made on the basis of letter agreement.. During July 1948 soma rever1Mrator7'^ttrnac^bo.ttoas\w.erj^old',; to thhaat Coomnpanyy*, Sales to the Tooele Lead Plant are made on a schedulelf'prepsred.^bbyyZ^tlh^Me^fm--insgs" suot^'liir.,/':^^ and deesigned to yield, a fair profit to each plant,. ., . :^ : (3) Inventories and Their Valuation v"` . "" ' The inventories remaining in the plant are deeignated as by-products*^U,the'etal"'content .of' ' these materials during s normal course of operation would be available in.'finiiihed'production nly.il reprocessed at additional cost, such content is not "worked bsdc*; torocigiasi^&teilsi.equivalents,.. . . The value of these materials is therefore based on an estimated sales-valuedor^actually on..an fevtrv .-y normal" basis established years ago on a schedule basis, A brief 'resx^J>f^h'j^schedule uied tejvalus'V the remaining inventories is as follows: * ? > ' '"? ' ' Metals paid for on all inventories: -- - ' .' Lead : Copper t Silver : Gold : 4C of content Content less 4 lbs. 95jt of content ' 95J& of content per ton and balance at !% Metal Prices and Treatment Charge: Reverb Bottoms Roaster Bottoms Reverb Dust Roaster Dust Lead Per Lb. 2.00* 2,00 2*955 2.00 Copper Fer Lb, 10.078 10.500 10.500 10.500 The treatment costs per ton are based on impurities. itseat 'Cost Per fontT \. n,.owe. ;^;4948i; :f:4'.991T$::V r' ,( ... ,,v3^.45?Q`.'' Based upon present or normal metal prices the above schedale^Kuld^s>e^s^t^:be><ver7'Jooose^vaU.t*: . Inventory during July 1948 was reduced by *8,384.62 due to sale:;ofa^lpro^uctAyltheiLesdfPlaat^and^to the American Smelting and Refining Cospecy. Revenue from salesbiws4*x*.^^^3ni^lp;h(|W4fd^Dt>bet.value>;V^ of the inventory as carried by *11,862.77* Cost of reclaiming thetiOTah.bg5ijsJ^^uj;m^ut||dom,;ejcpense of m *3,094.99 was $4,081.10 leaving a profit of *7,7Sl-.67. Preswenitt`nmeett*a!l;'1p'rljiiu' w`iip' c*d*d-^sc--s-ssgri^yfh' sre t' o ; drop considerably to convert sales of this material from a prroeffititjto.^1 .' .. . .. CH?TE3 PLANT SHIFMENTS - COPPER PLANT Reverberatory fin? Dust and Furnace Bottoms to Lead Plant Actual rei^ht end assigns are obtained to determine metal content cf -Aae^duxt^ind^rupnace ^bottoms.v' tf* - shipped to the Lead Plant* The management has submitted a schedule, fo>rr p_ reparCagTssttljsnntC^forlaaterial transferred^* Tills schedule is based on the assumption that the materiaalr _ side Germany or to the Load Plant at a price fair enough to yield a profiVrtx shipments during July 1948 were from Inventories remaining after shut .down*/* .. ^eijeoldjaitber^tol^an^out* fX*. iUr.V DH#.. .. >% ... `cv^x ^'v -se-:; Rive-berg^r.-- furnace Bottoms to American Smelting and Refining Coro aay. Taobaa'fWa8hiagton.v-. ' .. *' Furnace bottoms shipped to the American Smelting and Refining Coop any at.Taecca, Nashlngfon/.iwtr* also from inventory remaining after shut down. The terms under which the shipmentjttart rmadsrart.'oublixied in'- ' . letter agreement dated June 19, 1947, written by Ur. R. C* Cole of the Aaerica&jSmslting and Refining Company to Ur. Glen Port, Ore Buyer for the International Smelting and Refining Companyflyk briefiByaopaiaiof the . ' terms is as follows: . .. ?A, .'` Delivery - F.O.B,, Tacoma. Washington ;>v. : Tcnnr-.je - 100 tons per month, nickel content not to exceed 3 tone per month*'. Duration Feyoontn: Terms subject to cancellation upon written notice* -l- 4; "' '. , Gold If .03 ops., per ton or over, pay for 96.73* $34.9125:per.ounce.' Silver - If 1 troy ounce or over, pay for 95* at Handy and Sanaa quotation for re*k 120 days forward from date of arrival at Tacoma*.. iHnfmm de- V duction .3 of an ounce. . Copper - Deduct 20 pounds and pay for balance at New fork cathode'price 120 - ; :lays forvnrd, leas a deduction of 2.5$ per pound* r ", '. .ctioao: . ..'V. ` Treatment - $10 per net dry ton. .* i *" *'fln .,,, . s .. Zinc - 7* free; charge for excess at 30$ per unit*- ./.* Arsenic - 3* free; charge for excess at 5$ per unit! penalty ' $3.00 per ton. If 1* or over, no penalty...v^-g; vy Antimony - 1* free; charge for excess at 50$ per .unit. Nickel and Bismuth - Charge $2.CO per unit. ,* See aloo under Isneral Coatr.erie - Reverberatory Furnace Bottoms to AaerloanSmsl^ng and Refining Company** ............;1-r :5V~X .:: IHTTOTORISS - COFFER PLAW -' * Reverberatory Fumce Bottoms . - s- .* ****:,. ' The furcate bottom inventory at July 3. , 1946* includes metal in furnaces Npe*':3 and'i.'^Tbs current in ventory is arrived at by reducing Testing Department estimates by known quant^tdes/shi^sd**-Ths Testing De partment estimates were made by measuring, sampling and aseaying. Vie^bottom*^^^^^^^^heseI-tests^is.as - *F_u_rn__a_c_e Number Da.t.e. Sacpled _____________________ METAL Lead - Lba, - Copper - Lbs* r Silye; ^Ounces'<* X (Sold -- Ounces: 10/28/43 3/ 6/29 325,296 79.704 405,000 811,914 307.869 , ,;'*._-T>'5e8,iA:m40o;:0o0o..:> -;5St'2Tj!Wri!ie,,i*,JSM80*..0o0o0o 1,119,733 8,792*000 To the inventory as thus determined naa added frozen matte in"furn*ci ) " WV 10,300 96,600 ''ft ^*?2.'5:0'0 *siu . Grand total carried ae bottoms - at cezr.i** !*?r if operations 415,500 1,216,363 in Jum, 1St5 .. Shipments of inventory during the ensuing shut down period reduced-J^i tent at July 31, 1948: ; % to June 1945 Inver* tory 95,657 23,02jt 594,256 48.63* ^3 .S`t&f.2,854 *500 i ^VqwjLng.coh- 481 OSj|^26.6S(t. , PNYC 00012249 ' >U: Vf- ... * i:iyS!T0RI3S - COFFER PLANT (Ccntinutd) Revwrberstory Furnace Bottons (Continued) Furnace Number Date Sampled Lood - Lbn, - :7 -: . Copper - Lbs. . ' Silver^'Onncee . *; - GGoolldd'- Ounces All rae-ovals to date have been made from furnace So, 3, the ether furcacevreiiainlng: intact., ' Tbe in- ventcry on furnace No. 3 at July 31, 1948 was: r- ' , Vjajv'. , * to October 1943 Inventory . *5,453 1 68 189 ,t& V'%-: 23 * Providing there ie enough tomage remaining to yield the regaining copperJwid'VilVer'ooatent'as per. book inventory, it ie apparent that the lead and gold inventories were quite-^nsenratively-estimated. This is substantiated by test taken on furnace No. 3 on April 22, 1946, ten months'^tfter ehut:dom. The'inventory *j* d*tr.itr.in*d t.n b as follows* . f5.*--5-'f"'.. 595,027 1,276,478 J46,860.00 "4,417.000 This Inventory was not used due to instructions from Ur. B, 0. Sowerwine to'.the effect'-thatilnventories established at time of shut down, except fer subsequent removal adjustment*','.were to remain a* such until final cleanup of all plant inventories. Excavation underneath the bottom of .furnace Ho, 3 has yielded earth Impregnated with veins of lead. Accuracy of the inventory is indeterminable .until .final, cleanup is made. Mi M Under the lettor agreement for sale of furnace bottoms payments by the American Smelting'and!-*fining Conpany for silver and copper are to be mads on quotations for week 120-,daya forward from.date of;arrival . of bottoms at Tacoma. Settlements are therefore delayed approximately 4 month* from'.arrival of material. Durii\g this interval the material is carried in inventory at Tooele as though'no .shipment;h*d been made, L ' When final settlement is made, the inventory is then reduced by the proper;weigh^utt`metal'conteot, Reverberatory Flue Dust ^^ (about 3 month* prior .to sh\^d^m}'-the; Te*ting Department' ' On August 30, 1943 and February 23, 1945 estimated the reverberatory flue dist inventoryjr to be * foHow*: Jr rf , iii*.M \ ' . ' ?fV-' I."1" i *'?* **.' a * ' :,Vi;T A:L,;^-%-0'S-T:K K .J Dry Tons Lead - Lbs. Copper -vLbe^i [8ilver Ounces ' Gold Ounces 8/30/43 Sections 5 and 6 2/23/45 Sections 1 to 4, Inc. 680 1,966 146,987 ' 439 .280 ' 'il8,094^^ jjxir;c: * - S|pJ' 4^034.29 395'. 280 3'-wB*',"il'.9l8;*6'`'' -133,340 -* ' 331.740 < Total 2,646 586,267 At June 30, 1945, the Metallurgical Accounting -..k.--sp--iA>,xajw 455VW ' 2,646 308 No removals had been made from the flue up to July 21, 1948,';,9on*equt^th^*Mur*^3of3;tha;*boy* ;i\ ;v inventories has not been proven. In addition to the flue. inventory. >ta..;lar_gS<n^^ty^ofi<l\tf^ii&s^*tored at' . M stock pile at time operations ceased. The combined toma.ag.e' 'noff dust5ria .fflue] Ll.Ut,?jJtmana.>l.3V)0,|1C9atAS. ,.,w.a<i ' 'v . 4,012 605,268 **,766,23X5; *& m'754 The inventory of July 31, 1948 was: 3,278 . 441,188 / <** v. 597,5643a " dlW8|B^^ 626.459 Indicating shipments of: m}W 734 164,080 126,353 SiCKa 153.295 Accuracy of the inventory remains for future determination. if:'. HjfSyai - y&% It PNYC 00012250 COPPgR PLANT IH7BMT0RI33 - COPPSR PLMT (Continued) McDougall Flue Oust . i- -VV ." v *TJ '-I "T ' > -tf* ' ,! Sstiaate of dust tonnage tn McDoug&ll dust chamber was made twicebythe.tIeeting'.Depfflrt*nt"'ehortiy.`.'. " ; alter operations at the plant ceased, Using the analysis of duet removed^^rok^thle^ehaober^daring theflast':f^" month1 of operation the inventories as per testa would be as follows* Date of Tst Total Tons Lead - Lbs. ht n' co ' f`l Coocer - Lbs. ' SllTrJ- Onnc -viftsSold - Ounc.j 9/34/45 10/ 2/45 500 1,172 8,000 13,752 1i6633,,o00o0o.!.. . *,-ii80o;ooSSg^te-??-:so.ooo.': 3832,072.. 3,316.QO f.^tj^'^Uf.SOO ' The second test was more thorough then the first. Neither of these tests ware used,'however, on metal lurgical reports. From time to time the Metallurgical Accounting Department estimated the dust inventory op . to the time operations ceased. The inventory at that time, June 30,'1945 was* -j, :&V ` 1,600 65,800 350,350 " 9,400.00 . ;' ]?/ * ^510,000 ,' Since that time shipments have been made reducing the inventory at July 31, 1948 to: -. . 278 9,688 135,233 1,444.34 ' 150.110 This would indicate that shipments had been made to the extent of* - . : . 1,322 56,112 195,017' . 77955^66'' 159.890. ::/ ` . ' "-y . '-s To date then, removals have been mado exceeding either of the Testing Department estimates except for copper content. Only final cleanup will divulge accuracy of lUtalluxgical'Aeoounting Department estimate, although to date it proved to bs far superior to that of the Testing Departmeat^'w-r.-. McDougall Purnsce Bottoms Tonnage of furnace bottoms has not been changed since the plant: discontizBiedjOperation*:;:>Tbe^estiaated , contemnt is as follows: V*' -D-r-y--h--e-i-g-h-t--Pound. s Lead - Pounds Copper - Pounds -1,056;000 2,112 24,531 ..V !fc. ' Silver - Ounces . 835.71 . jT<*^ Gold -Ounc . . Valuation is carried as t2,298,,33o No data was readily aTailablt;aa*to.>ethod pf -inventoryingTor method of arriving at metal content* Presumption is that estimates were made Converter Copper ` =: ' 'tl/' ; ; . * =1 => , `t . !#= 'ir . The only converter copper carried as inventory July 31, 1948, oonaited?of';.6Cj:molds at. 856, pounds .each for a total inventory of 35,640 pounds. This inventory is carried bgnthe " ~ * ' and* no-.valuati'oa \ is made by the Tooele Office. . * *ti *. s- ' .<ik: := pnyc 00012251 ;1 ' ___tj+rs#?-. *' :/> ACCOUNTING PROCEDURE FOR LEAD PUNT Records are kept by the Accounting Department to furnish the Kv Tork C^ie^i^'hTco^letV^^t^as^to'coet-1?*' '!' of materials for treatment, gales of product and valuation of inventories, -Valuat'ion/of .lead-buHiavinventorie*, . however, is mde by the Nev Tork Office and any profit and lose cbterainationsmadmbytbeiTooel* or.Salt Lake . offices are necessarily estimates. All inventory valuations of .the Slag/Trsatasnt4flaat-4Lrer'mads-by;ths Tooele 'Office and in that respect the accounting data on that plant, is more. cooplete`.thao^hat.Jfor>.thetrLeadiplmt.:'Finals statistics, however, on both plants are available only at the Nee fork Office,i^^^ecri^iea^lom^.brlsfly.dsi * tails features on (1) receipt and cost of materials (2) 8bipaeflts'azri'3ale'^producisiand.*(3)fcSTentry yal-- nations* ' .M (1) Receipt and Cost of Materials ^Y'-vv :! -'f:. ~ ' - . . V . . s- :y. ct -.<<?*<>'.. . Materials purchased for the Lead Plant consist of high lead content .ores, concentrates,`residues, scraps and inter-plant and inter-company materials* With the exception, of >the .inter-plant, materials, all are purchased directly by the Ore Purchasing Department,. Latex^ia>.this\.reports!a...rpresentative . . .. contract is suamariaed giving the usual purchase tarns. th..Ow. rupa^^typrepsrWthe settlements, issues the vouchers in payment and records the .purchase '.oostlon..ths*gieral'.books,`,/Ths ' purchase cost is not segregated as to classes of material purchased,., only.on* .'total appearing .on trial, balance as "Ores Purchased - Lead Plant,* Another account is kapt segregating cost:foresfor the . ' Sulphide Concentrator Plant. The Salt Lake Office tabulates.xths ores .by;4ihippers.showing full detail on metal content, metals paid for, treatmert. charges, penalties and.net.most-.of ore purchased, This . statement is submitted to the Tooele Office there abstracts are-prepared^ahowing metal-content'of all-, receipts, A check is thus obtained on the weight of ore and total'metal'Content comparing tbs two. statements. The Tooelo Office accepts the net coet as submitted by:ths:Salt^aks Office, lbs inter- - company materials received during July 1S40 were arsenic residue from the'Anaconda Copper Plant and. * ' ores from the Anaoonda Copper Mining Conpany Darwin and Sbosbcne aines^.- The lew.'.Iork Office'of the.v. ' International Smelting and Refining Company ie credited with the proceeds.due the Anaconda Copper /. l..' Mining Coopery, Vhe purchases are all mde by letter agreements. Inter-plant purchases, such.am reverberatory flue dust and furnace bottoms from the Copper Plant and.lsadfurns, from the Slag..Treat- asnt Plant are all purchased under schedules provided by the aanagsmsnt>^Jhsso. schedules are 'cal culated to give both the shipping and the receiving plants a fair, margtnHofiprofit andftbs'^schedules - . are revised from time to time to equalize profits as necessity-requires,^ TbeseJinter-plaatitransfers - in no way affect overall profits and ere made simply to .provide data oiiprofit*1 by-plants,f.fohs Salt' ' Lake Office is provided with detail on the transfers, making^ene-entry.'oQ.'';,tbe\general*-books'ahovlsg ' the cost to the receiving plants, offset by a credit to the :.s^wing-^la^_s^^'^'5^^;^^^ ' ' (2} Shipments and Sale of Products . , .f^ The main product of the Tooele Lead Plant is lead bullion.shippedtto^&e.JUurioan Sm*lt4Jig.*nd Ee-V* fining Coopany under toll contract. The lead, silver and hisaith^ai^i^a^sble.^r'and,other.^oon^ent sold or charged for according to contract hereinafter discu84ed,'.?:^sb^?ol$rstunabla.'Mt4^^re;au4e];i > by the New Tork Office, hence any profit calculations, by. thevw>atagabfflcsi^ara1estimateseCrs-w ' turnable lead end silver are wholly owned by the Intrnatlonal-.Smsltlngliiiad-.RefiDiag^Cosp4qy/;'although the returnable bisoith la shared on a percentage basis with.the, Aaaoonda^Copper^Mlnlng^Comrany.^Thisy;. is due to. treatment of Anaconda Copper Plant's Lead Plant under agreement that bismuth in bullion, is ..to;.be^divide^'ate^ft^a^wo-tcom^nlyffv^Blaet ' baghouse fume is shipped to the Great Falla Electrolytic :idnc;PIaat&or|W^^r^ofjrcadalam.XThe~ sale,.-., is made on letter agreement, and is highly profitable to: bothj'plmta^hs^Tbpels-Plantvdisposlng',of an'?-.,v unwanted material,, the Great Falls Plant being able to treat-limited^^tytltiss^prcfitablyflYThe.Mew,,,v. Tork Office of the International Smelting and Refining Coapany is^ch^gsd^fot^the valae.-.of^thia material - and sales account credited. In addition to the above produets- soas^eoareclerjqopper.is. pzoduced;by...'r' ' treatment of dross reverberatory speiss in the old .copper converting.plantl^^Zher.oopper-twillion is shipped to the International Smelting and Refining.Company,^iPsrthrAi^y^^hwiyJ.srwyrfor'refinlng,' After toll chargee and agreed deductions the copper, silver.io^gol4^arsJ*eturnabli^As^lni,the case" ' of returnable lead, no sales revenue is reported to .the .Westera!>pfficemgi)yre>proflt~^calculetlone must f be estimated. Bo entries are made by the Salt Lake .Offlce^toJ-^corcl|igtyeyta'ecat4.chargesXorKrey,epaea from ^ production of converter copper* Molten slag is. told .'torthe'iSl^VTrs^mSQ^PlaAtjnnderl^enM'outlined by the management. F- or f-urther .p--anrti--cu>l--ars --on thia +tr--a--nswfe-r-ise-e--^^y-i--*~--^BMn^iialtbe:-Slag Treatment'1'!-? Plant section of thia audit. - > -i?*- (3) Inventory Valuations . `W (a) Ore at Stock Pile As noted under comment regarding tonnage and amtallcqnttt^^rlpreSiJi siock^pilsJStabulation^ :. is made of all receipts at the stock pile by lots.rvThs prtntiedKor^lff,e*,thim .*tabulation has columns for pounds metal paid for, money paid, price deduGtionsyanditr.eatmeatfcbarge S*-^:1 All this information is calculated from settlements as submitted.,by the^pre^Piu'dassing'D^artment, *ith the exception of silver and gold valuations., "Psr " ............... .. w * j^*we_red...n..e..'.t.h...e....s...i.l.ver : pN^C 00012252 j Vf-'. . .. ...i'-i*?!*,.,-**; *8' ' yV, r>, i ':: LEAD PUNT ACCOUNTING PRflCPXlURS FOE LEAD PLANT (Continued) (3) Inventory Valuations (Continued) (a) Ore at Stock Pile (Continued) . ; is priced at 34.754 per ounce and the gold at $34*00 psr:ounce* ht^varinceifrom .orthodox* method is used in arriving at ounces gold paid for* 1 tabuLstioafiaTfirstTnade'ihowimjiMg.4thkAe'alkantiwtu4iiil/ *UW- paid for gold as per actual settlements* This cost is thLD;divide,d.sbjrv#54v9l,:;govenua*rit*'prics, ^'' to arrive at ounces paid for. This number of ounces sill therefors',Yary;.wlth thsrgald.paid for .. as calculated on settlements wherein various gold prices are used* -The ounces psid.for as. thus arrived at, are multiplied by $34.00 to arrive at total inventory,Taltte* 'Heason-for'this.practice . la discusoed under coonents "Inventory Valuations - Lead.P.Lint, After the detail for all metals is set in and footed accordia^''to;..the>^pu?fpilej/post-'*2 lags are made to the "Record of stock Pile Ore** When added to-the:j>rior^aonths"inventory a }>^' *. "total to account for" is arrived at, . ;;% .v U*; - Vv Ae previously mentioned, removals of ore from stock pile are determined frest'scale tickets - showing weight, and lsb?ratoy assays for determining metal content* The weight and metal content, of the reacvals are then posted to the "Record of Stock Pile Ore** Then a pile is cleaned up, the last prior inventory is written off* Otherwise the metals paid for and the. valuation thereof are set up at an average of the "to account for" as above meationsd,^, However^ siaoeyApril.`30, 1948, a last-in, first-out method has been used on lead and copper valuationsi'-replaoing the ;*to;aceoont. ' for" method* Having entered the receipts and removals to the "Record of'Stock Pile Ore* all columns are footed to a new inventory which is transferred to a work sheet showing .the treatment of crude ore* The metalo paid far in all receipts are adjusted by. metals paid for in inventories to arrive at metals paid for treated* Providing the pounds paid for in ths treatment is less than the pounds paid for in the receipts, then the average price of the poundsipaid for in ths receipts is used against the treatment (last-in, first-out) and the stock pile'djaventory is arrived at by . deduction. Sxample of this procedure for July 1948 on lead.invtor^-*ih~as follows!;.- . . ; j 1 <^ v'- > Stock Pile Bins {Jain? St^ck Pile Record - - Hein*-Treatment'*sHf'Sheet*-* = Pounds Paid For ): Cost Per Lb* Amount 1 * 'r*-. ...Pound*-.Cost V'':v>V v I' Pildil IS.' P.r-; , C>^< 1 ' V, A. gagpi^'l^. 'yg&g^acmt * 3,344,989 841-527 9.9896 } 334,133.99 .'d ,3,3U 99.; 17,1946 144.609.65 t-S41-,587^^4<17:184 ^.r144;`609*65: ' : .Total 4,186,516 ' $ 478,745*64 ' Receipts 3.974U19 17 .5534 697,576,35 3.974,119 17:5334 ~ -697.*576.25 To account for 8,160,633 Inventory July 31, 19401 Stock Fils Bins 3,522,612 876.405 4,399,017 $1,176,319,89'.;: BjiwJ ' : '.. - ... 12.1084 $ $ 426,527*73 ^d3,522^6123] 15l.543.75':>sr- 876.405 ^ ` - .)?<;jftriti 577,871*46;^ $1,176,319.89 'SSiPw aipIK % S5a`gSs6*,'689.38 * `-151, M3.73 ?. Put Into Proc.sa 3,761,613 15.909< * 598,468, By using the 17,5534 cost on material put into processes higbc^oost:was,`ujed^aQ'ii..coQBS- -. quenbiy inventory lowered by $61,823*38, Value per pouzidflnWntx^j^Tl^sred:fro|tTLB^di P*r pound to 10.K34 per pound. It is apparent that this-.procedure4'set^pj-inventory^.'raluations lower than those carried on the Stock Pile Record ^ichtbefoMji^nij^^icniofi^js^f^-ini'ifirrU out method above described was a starting point for maintaitdng^^^jonaWy^^-inyentory,. bring the Stock Pile Record into agreement with ths rerieedTbvsival3 ` ' " tion a- reconciliation or revision will be necessary* . yWx; ; > 7 'YTfo.w:,i.' - v - I -, * - L2AD PLANT AC00UMTIN3 PROCEDURE FOR LEAD PLANT (Continued) (3) Inventory Valuations (Continued) (a) Ore at Stock Pile (Continued) It was noted above that when the pounds of paid-for metal<ia-ths matsrlai^put;into:'procesmjis loss than the pounds paid for metal in the receipts, than the prlca^of^aetal^La-the>eeeipta .iajused on the treatment. However, when the material put into proceea.txc--dsfthe;reoeipte' (eoae...inTeatory _ treated) use of the received price is not justified. :'In .this .sveifc*theJfpottnds'\txeated is'divided frl into two parts, one being the whole received poundage`llth the 'costVjhereof^and^'the^other thffbalanoe of the poundage at the prior months inventory value.'> ' " rf.t :^ (b) Ore in Bins :. v~>:s. .. *, After having determined the bin inventories by bin measurement.-:and;calculated weighty a.tabu*. . lotion of these inventories ie made by lot numbers. As in tbe^eae^of ores recaived.at* stockpile the metal content, paid for metals, value of paid for met ala.-i&d^tr^tant|:chju*gs^ are.-obtained: from, settlement data and tabulated. Following instructions as. before':mantioned,-.'milvr^ Is ^valued, air. '' 34.70$ per ounce and gold at $34.00 per ounce. Lead ia valued'exactly at coat',' all^adjustmeuta to arrive at a treatment at last-in, first-out cost being made on stock pile ores, as previously dis cussed. . * : v'- ... .. (c) Ore in Process ... Ores falling within this classification have two costs)' namely,'-purehass.::ooat and- reduction . cost. To arrive at the tonnages and metal content upon which to apply.oosts, use is mads of a "worked back" inventory similar to that used by the. Montana planta.-fcr inventory.valuations. Only products which are In direct line of treatment, however, are worked back to an original material equivalent. The plants in order are (1) Calcining, () Sintering;'ad: (3) Blast Furnace. Tbs pro ducts directly in line are therefore caicins, sinter and molten Itadvr^Xaveatorylaf the latter pro- . duct is valued by the New York Office, leaving only sinter aad'calcin#'to be.worksd'beck to their original material equivalents. A number of other aatsrislsar.a^eiaased.as^hr-pjoducts.- .Some are .. . lead dross, blast matte, epeiss, blast cleanings, forehearth;m^erlal,'(.blast^bagbouse'fuj**, blast flue dost, converter cleanings, converter baghouse fuas^'snd^'siide^irigrplant'|cleaaii^s^Theae'pi*o--^: ducts are not worked back to original material equlvalsnt'-oailJar^assuaption'.thattther.^equire .' further processing before entering the direct line of |tre4taent5fe'hey.fare[valuei;indspendently as discussed under (d) below. The sinter is worksd back to matexlaiTnsees'sary to-have,been treated for its production. The material necessary is thsn further segregated;^ proration and. assay appli cation into custom ore, calcine and by-products. The 'calciae-'equivmlaat.is tbsnodded, to actual Sintering Flint Calcining Plait Sampling ... Cost par.-. ISSB; ...------------ . $ ' . . .\ \ t 2.5063.' Oeoenber: 31,. 19*1**- l 5.4916": .'6;iS16.5>"--Var!h;!fliT ,h X .->& .-ft . 95.035198* . . ... * Cost for 6 *>ntha ending June 30,,n-1^584.3:;r* ?Uat^t*`in*^parati'o* n:'J"u"ly 1940* ** Costs for 6 months ending December*: ^ The purchase costs against ore in process are deter&lned''fnsi'.data'srrived:'at*above in (a) Ore at Sttoock P1 ile. It was there noted that the cost ofr!7.553.|fp.e.r?p.o.un.d'..ofrieadiwaa.established for material put into process. This pries is then ueed to'valueit.ths/o,e,,in..prc)Cj*ss,,uaing the*, earns percentage of metal paid for to metal content as.'fic.st^etexmiJM.d^on't.treat^e^t. 1 'The sabs** procedure is used on copper. Silver and gold .are Valnd~:'stlsfc^^yad<43400iwipeotlvely.^r'All purchase contracts specify a deduction from metal !quotjit'ioiri^oyfreight'sadirefinlng,y. This credit is applied directly to the costs of lead. and<bbpper>tooifct<5Jtbi@lmt^lnJfelrst-out'method is applied for bin and pile inventories, but no wcbyiAst-iajVfLrst^otiVprbesdur^is :.umed in - following through the freight and refining credit frcai''receipt`.tojloospleted'treatments-Ihe s&ount involved is small and application of last-in, first^ut method|on',thim;credit..would involve con siderable extra clerical work and detail of questionable-valnsT^Jberwiminc-JU^parchaaed the cost is added to the lead oost. Treatment-' credits.) " .................>- ` * ` ventory la terms of lead, eopper, silver and cal report, "Value of Material on Hand." yny? . W' `;u3r-* i . '-tf LSAD PUNT ACCOUNTING PRCCEDUfiS FOR LB AD PIANf (Continued) (3) Inventory Valuations (Cojrtinurd) (d) Ety-Producta 4 -V: .* * ,, By-products are valued on a different basis than ore.and'jOrelin/proctes.o; A* .mecfcionsd tbovr^f these products must be reprocessed before yielding their metal oontecttin|finisbed ,buHioo.,jrThe. money- spent up to the point at which they are located is considered to htre^bflf'e^spentrfor.-'thiTpro'duction.of- ' bullion., and any value remaining in the by-products is assumed to be'at jdiat'.it'might be-'eold'for,-' ' either to .an outside cocpany or to another plant for retreataent* Accordingly, .the-management-has pro vided scheduled for sale of products from one plant to another *Dd it.-is|by these, schedule! that valu ations have been placed on by-product inventories, . . ; One element of "worked back" principle is involved in valuing byrprodacte, Ain; the ^cojx&ant .above - y concerning sinter and calcine it was noted that these inventories, aret5wrksdbackl.to>thlr.ucomponents, r ' one of which was "by-products," These equivalent by-product*- are theo^added to physical by-product* * on hand and a settlement, or settlements are figured on the total* AtfJuly.31, 1943,. two settlements., were made to show the value of by-products, A "Special Spels a" high In'copper content was valued separately, the balance of the by-products being calculated on a different.schedule, lbs .'Special Speiss" was valued on a schedule predicated upon cost of recovering copper-content at the old converter plant. The schedule as used therefore included a high treatment charge (#15*00) per too and** high*. penalty (751) per unit on arsenic. No segregation of the by-product ,valuw;ie. obtainable, on published metallurgical reports. The values are combined to arrive at a to ta'-l.jinventory* ;?. ` ' '' The eettlementa prepared for valuing by-products are used for obtaining metal content, metals paid for, freight and refining allowances and treatment charges comparable to like information taken from ore settlements to arrive at data on ore in stock pile and bins* -Since the by-product inventories contain considerable lead and copper a last-in, flrot-out method of pricing those inventoried* used* The prices as used were the approximate metal prices at the time an increment mas made to the inventory* At July 31, 1948, the pounds of lead and qopper in the inventory and .thej.eegregatioA acoording to price was as follows: : ' ' Lead Pounds Price 447,058 1,272,820 230,200 155,394 . '-A- Copper. *[ v' .... . 'ESSSSt- : Pricevjfcl . tTitIi Wl,079V;^-et60# " ; '517,632.11,7754 .i* .67,227.%fl8.008#^ *196,l37'f&20:497* ' ' 100,608 20lp_a2fr*aV*vl p;?' 2,105,472 r;o54,8rPl Ifet ^^aSkaL-'-tS^4- * (e) Finished Inventories -*w `Tib' -3^ awlea..w...a.P...T..t.f;..;t>-. - Inventory classifications above account for all valued mat#rialfmitb itbe.fexception of' lead bullion* Finished lead bullion is valued by the New fork Office* All neceeatrydatajpertalning .tolead-bullion is supplied on metallurgical report "Lead Bullion Production* page 20 of^theMjuly l948.atateo#nte,.. ' .. . . ?vrsiea#l--. '.i' ' R3CEIPT5 - 1BAP PLANT Contract Provisions - General , All aaterlals purchased for treatment at the Lead Plant are pu^haaedArad^deflnite`contract* terms or upon open schedule for shipments in smaller quantities* Iaasnich as amelting'.oi^J'are.purchased for their .V slag miking qualities and absence of deleterious elements ae well-rteCfor recqy avb*le~''m-et_al/'okonteknt,*!ithe' con- tracts vary somewhat from those used for purchase of milling ' - A- On the pages which follow informative data ia given concemin^plant^p ^ee.doreT^n-'account'ing^_for.1 receipt* of ore and other treatment material*. Ae contract term* for the.most part^^b,l,i,o.,^..the. 'earn* .patt.er.n.];^* r:. 4--*.'' synopsis is her# given of contract with R. K. Hamilton d L* F. Jacobaoa7fory!Ptijgcha**^qf~iead:orw ytnd lead concentrates, contract terms being illustrative of thoae with other. coapafLiesV^^^i! in-rs&m . , PNYC 00012255 .- $$ RECEIPTS - IZAD PLANT (Continued) Contract Provisions - General Metal Payment u; Gold Silver Lead Copper Zinc (Continued) ' >. ''.j r: - ' .. , . *>* If .02 ois,, per ton or over,;pay'for^91$;jibv$ S.OOy>M onne*. Pay for 95)6, MlMwnm deduction'*.5^bunce.'3$*^ '' Deduct 1,5 units from net aiy^sncdpv^f^r^ii;K5^,w.,, .. ,.-r per pound. .. .y\ Deduct 15 pounds per ton aadpayiforcbUance^atilew^Xork/price ,,:* less 6,3555*, : . ;' If 7% or over pay for 75)6 . ` `' * Treatment s Labor Bullion Freight Insoluble Iron Lime Zinc Sulphur Arsenic and Antimony . '1-> i !* ' * V;'* | ., f- -, Base charge $4,564 per dry ton .on .80j6 settl.ejMnt. lead, plus. or. : minus 104 per unit above or ..below^so^*' : 'v,;., v v. Base $8,89. Add or deduct 15*'to.:base..treatasst charge'for - each 25* increase or decrease in -labor rate. i-V*- *.' Ease $19.61. Any increase or .decrease in this rate for the account of the shipper. .' ,.. ' Charge for all at 10* per unit. . - V. Credit 8ll at 6* per unit, '. . . If % or over, credit at 6* per unit. . . -Ai" ' Cliarge for all at 15* per unit;if paid for.-. -When, no payment . made penalty will be 5* per'unit for-exceas over . ; 2/6 free. Charge for exoese at 5* .per.unit: i'to.a'maximum of $2.50 per ton. ' '' - L ' '' 2$ free. Charge for excess at 50* par unit. . . ' Duration . -ir . /* -: 1. Effective on rjcsipta of Itareh l,..'X," Xor. . ilx'oatbi.p*rio(l. Ores and Concentrates fror. Combined Metals Reduction Company -fl- ' 'if s- jv*. l '-7*' V r>V i*^ ' Receipts from the Combined Metals Reduction Company consist of:xrudej.ore^from various-locations and. lead concentrates from its plants at Bauer, Utah, and Pioche, Hevada.r,factors'^determining the quantity taken into metallurgical receipts for the month are (1) availability of silver affidavits and (2) .availability of data necessary to enable clerical ibrce to report plant profit* by lth\day, of Jecoth*^ Date, of .weighing or.date of dumping or sampling do not therefore govern the quantity of Aaterial^celved^r^aactice>ia therefore, some- . what at variance with that at the Montana plants of the Anaoonis .Copp^erlKini^^o^aqylmher^Ute^of. aei^br lng governs receipt of custom zinc concentrates and Butte Hill;' M^e^'c^V^efsrence^toi(summarysdfTComhined ' Metals Reduction Company concentrates received shoved for xaBple^thatTlotVf5057^5060'<and^5061niere'sampled on June 29th and 30tb, 1948, and weighed prior thereto, but were taken intb^JttlyV1948.treceipts.'!*5lCr.' W."H. Floyd, Chief Clerk, stated that although the lots may have been'weighedand'dusped-into biaa,l-adjustmante .. . . were made eliminating them from bin inventories and record of receipts if* *ilveraffidavits.were not forth coming, or if coaplete settlement data was not available1 lt`o comp" le`te compu` ta` t*ionfrjo~f prof"it"ej>'b*y*_*the 12th o*f.' the month.' Scale tickets are sent to the General Office, ae are moisture repo|$s|frcav.the;.Saapllng-.M j-The . gross, tare, and nett weights and the moisture percentages are eaterediupoa|tjfary*kTmai`ae '.fBEseoord of Lead . Ore Received,* This form also includes space fcr mine lot number'`.smeltjarllottnajiber"and.car :huaber..-The. r lot numbers, the net weights and the moisture percentages from the`-;,*Becord^dfftead%Ore Received",,.are ;u#ed ' in the preparation of a "iunary" or *abatract* tabulating'all receipts'by-the^ionth.^ Anothe.r/report ea- titled "Report of Material Saspled" is prepared for the Salt lake Office.''Jlt^includes' the.lot.nuafcer,' car! number, naan of shipper, date weighed, date sailed, net .wet (-weight of re#moisture percentage?; dry w eight.: of ore and where dui^ed. Prom this report, together with assay reports'frcm'ibothwth* tshipipe^tand the smelter the Salt Lake Ore Purchasing Department prepares the ettlemsnts.;i.;The.:Too\4*i8^wi-cfW^5^^^*^'summary, or tabulation by use of settlement assays in calculating the metal-contfiit^^RMRtqtal ore^cr.iOODCentrateS' received is then entered upon the metallurgical report ^Statement ?ofvCustom,Katerisl Received - .Tooele Lead Plant." Cost of material is reported to Tooele by the Sals Lake-Office^erejtry is made cpon tbs general books. PNYC 00012256 m LEAD PLANT Crude ore and concentrates from both the Darwin and Shoshone mines of-.the .Anaconda Cojper'Mining Coapaa^' . are purchased under terns quoted in letter of June IS, 1945, Hr* A, B.Toung-to^Mr,' K, C,;Sowendns, Car* of'.'.? ' crude ore from the Darwin nine are combined into composite lot* for assay andaettlaoent. 1 Concentrates fro* both mines ore sampled and settled for by composite car lots9 ' ' Accounting procedure for receipt of these ores and concentrates ie identical to that described for re ceipts of ore tvl concentrates received from the Conbined Metals Seduction Coop any, except that assay* of the International Smelting and Refining Conpany are accepted by the other companies, no comparison of assay* be- i:y made, `; Residue from Amor l can Zinc Cocmany of Illinois .' f' '; ' .' " Residue from the American Zinc Conpany of Illinois is received under oontract dated April 9, 1947, ifcich provides for return of 80,t of zinc content in fora of deleaded sine fume at International, Utah, all other motal3 being outright purchases* Inasmuch as treatment charges may outweigh purchase costs the American* Zinc Conpany is then billed for not tre-itnent charges due, ;* Accounting procedure for receipt of residue is identical to that described for receipts of ore and con centrates from the Conbined lletals Reduction Company, '' - The coi&ract provides that the zinc in fume will be returned curreotly-ae the sine residue is purchased und treated and adjustments in the amount of returnable zinc will be made in the next calendar month. The duration of the contract is for a one year period freon April 9, 1947 to April 9, 1948 and extending beyond that period subject to a 90 day notice of cancellation. Such notice of cancellation was given to the American Zinc Coqaany by the International Smelting and Refining Conpany on .September-8, 1948, due to un profitability of treating its roaidue. Negotiation since that date has effected division of the additional treatment charge from $4.50 to $9,00 per dry ton? effective November 7, 1948," American Zinc Coapany to continue shipping Jto residue under the nee rate, * TS'y. , Residue from Anaconda Copper Klnlng Cotas any Resides from the Anaconda Copper Mining Company Is purchased under letter of-July 1, 1941, . This residue is a product of the Anaconda Arsenic Roasting Plant and is produced from high bismuth content'flu* dust re moved from the Main Cottrell Treaters, It is stored at stock pile and at periodic intervals shipped to Tooele where the Lead Plant recovers the bismuth in lead bullion in addition to o.thec-metals,.. Tbs lead bullion is then shipped to the American Smelting and Refining Coapany at Ctanha, Nebraska oatoll, both, the lead and the bismuth being returned to the International Smelting and Refining Coapany, -By agreement, the Anaconda Copper Mining Company shares equally with International in the proceeds of the returnable bismuth,'. Ninety percent of any bismuth in the bullion above >255& is returnable^ : v,` ' l '"tf .'//' r ij.- - Accounting procedure and records ere the same as previously disoussed.conceming;receipt of ore and con centrate from the Combined Metals Reduction Coapany, ..u' ... .. ' Letter of July 1, 1941 under which terms of purchase were stated was from Mr, A. B. Toung,. Assistant Manager of the International Smelting and Refining Coapany to Mr, V. X. Mitchell, Manager of Anaocnda Re duction Works, Reference may be made to letter for terms. No provisions wsr* made regarding splitting, limits and uqsiring, In letter of Mr, A, E, ffiggin, then in charge of .Montana metallurgical. operations, to Mr. J. 0. Kiton on July 15, 1939 the following splitting limit a were:' euggeated^'i-^ V ' . - ' Gold Silver Lead Copper Bismuth 'l<-- t:: ' ,006 osa., per ton-j- 7*- 5 ota., per ton".;" " * . .8*- y . .5* .;.A'r?'us ' These splitting Units have since been used. In addition a Ijt-;.splittiag^limit'was, put into effect on other metals per information in letter of November 20, 1940, from Mr, Rbm.Xazburton to Mr^Qeorge A,'Dean, former Chief Clerk at Anaconda Reduction Works quoting Mr, A, B,-^cang instructing use of Upon caparison of assays at Anaconda the sample is sent to the Anaconda Copper Cospay Washoe Sampler at Butte, Montana, There all unpires except bismuth are determined* As the Sampler does not have facilities for bismuth ' determinations, sample is sent to the Great Falls Reduction Department for umpire. . > .v*-'* PNYC 00012257 U ISID PLANT RECEIPTS - LEAD PV.MT (Continued) Lead Fu.uft f r-.-ct, 51 gg Treating Plant For purpsoaa of deterainin* Lead Plant and Slag Treating Plant profit*- independently * settlement i* pre pared to aj*rive at a vain? of the material transferred from on* plant to th* other*' The management ha* pre pared a schedule detailing metal payments, recovery percentage* and treatment/'cost*. to .be used in calculating the transfer cost, . '`tfr'i:.,. ' ' ' . W--7 ; \ . Lead fur.* from the Slag Treating Plant is one of the interplant traasfare* * llctual.weigbt of th* fuM -i* obtained. The Sampling Department obtains samples on the transfer* from which monthly moisture percentage and assays are obtained. By application of monthly Engineering and Mining Journalk'quotation*.and the terms a* out* lined by the oanagoraent a settlement is prepared. " . 'J . - . "hen inventories of lead fume exist at the Load Plant th* quantity of fun* settled for is the amount treated. The inventory is carried at Slag Treating Plant and the deliveries to;the lead'Plant art-adjusted by first and last of month inventories to arrive at Lead Plant treatment; for whlch^settlement is. made. This procedure simplifies inventory accounting* .? - * Th* Journal entry to record the transfer is made by the Salt Lake Office and is a* follows* Inter Plant Traoefers - Lead Plant Inter Plant Transfers - Slag Plant When other inter plant transfers are made, the amounts are ooobined and entered to the Journal in total. Reverb Flue Punt and Furnace Bottoms from Copper Plant . The transfer of Copper Plant materials to the Lead Plant is made in accordance with the principles des cribed above for transfer from the Slag Treating Plant. . -. The Journal entry recorded by the Salt Lake Office is as follows*.; Inter Plant Transfer* - Lead Plant - Inter Plant Transfer* - Copper Plant SHIPMENTS - LEAD PUNT Lend Bullion Shipped to American Smelting and Refining Company. Onaha. Nebraska. :l .. wi':' Load bullion is shipped to the American Smelting and Refining Company.-at .Omaha, Nebraska/ under term* of * !. contract dated May 27, 1346 for a ten year term commencing June 15, 1946.andfexpiiing June 14, 1956. ' Contract ' provides for a shipment of bullion averaging between 96$ mad 99$ lead, between ;-*4 and *7 ots*, per ton gold, between 70 and 110 ounces per ton silver and between *2$ and .8$ bismuth.,-Content.of lapuriti** 1* also spocified, Twenty days after receipt of the bullion at Omaha the .American Smelting .and: Refining. Company is obligated to return a quantity of refined lead equivalent to the entire lead:content of bullion a* determined by wet assay, lees a deduction of 8 pounds of lead per ton of bullion* The`.-reflnqd;lead mast'-not contain more than ,1$ bismuth. Ninety-nine and one-half per cent (99.5$) of the gold contentlit"paid for'at government price, - Silver and bismuth are returnable under the contract, tha .silver at 100$ of''.content/and the bismuth at 90$ ' of content over *25$ contained in bullion, Silver and bismuth are returnable iO.fday* after receipt of bullion at Omaha. / ' As compensation for refiniry the bullion the American Smelting and Refining'Coapany receive* #6 per too. lead bullion with adjustments for changes in labor rate and sine price* > Por.eaoh:-!^ per.-hour,.increase or decrease in labor rate a charge or credit, respectively, of per.ton of-lead'.bollioaii* >made.t A cherge or . credit of 14$ per ton of lead bullion is also mads for each lj that the araragajsine prlce'shall: be. in excess of, or less than basic price of 6,25$ Pr pound. The contract also'provides^ran increase (in base charge due to increase in various supply costs as determined by the U. S. DepartmeflfcS.ofL*bor, Bureau of Labor' Statistics, This provision, honsver, is effective only during the last five years .of the contract* For all silver returned the American Smelting and Refining Company charge-l*5f per ounce,`.*nd for. all. bismuth re turned, 504 per pound. Charges are also made of $1 per unit of antimony contained in the .bullion and $2.50 per unit of other Impurities including copper, arsenic, tin and tellariuaUltSplitting lixd^ta^for.determination of settlement assays are provided by the contract, and provision is made ford.nsei.of umpires.-jyTfce.above briefly outlines the main features of the contract to which reference may bemads for acre detail. ' PNYC 00012258 lead plant SHIPMENTS - LEAD PUNT (Continued) Lead Bullion Shipped to American Smelting and Refining Company* Cttiha. Nebrsskaffj ;- The Omaha plant samples the bullion by lot s, and also makes a composite monthly sasyale.v' Lot' sampling is done to obtain silver and gold assays, and other assays are detemii*d.,frai.-sBthlyvcGi5>osit;.aapl*sr . The contract specifically provides that settlement shall be made oaths lastdayofthemccthfollcwLng'dw^ - livery of the bullion or as soon thereafter as all neotssaxy information is available^^Preparatioo^oX.pro^r.^ ductioQ data by the Tooele Office must therefore be mads on ths best availableStaforaatioavatVclosd'n^^ For example May 1946 final settlement was not available until July IMS pro4ieiion^as|bei^tcaicolats4"t which tine adjustment was made for estimate of May 1949 delivery previoasl^usod;to^iirrlTe'ya.t^Kay 1M8 pro.^ duction. No final data on June 1940 delivery was yet available. Julj 1948 deliveries,'were*'estimated ty use : ' of Omaha weights and Tooele assay*? ; . !* . I;-, ' ' ` r';t ' '"Vs-?/' The Omaha plant reports the weight of bullion in each car reosived and.also.'reports .threetime* monthly the cars lotted for settlement purposes. Four cars constitute a lot. Eachlofc*eigbs-, approxiaately 240;t<xie. Although the contract specifies lots of about 180 tons, the larger tonnage^fraafbean mituall/,\agreed upon <fee . r>* to capacity of kettles used in refining. Car numbers, Tooele lot nuabers,'1>.d&tes|received,^ClULha wighteand/ -: lot numbers, and estimated metal content appear on the three reports MnrAft, ; ' Each company sends its assay's to respective offices of each company in Salt Lake City, Utah, ahere assays are compared. If umpires are needed the Omaha plant is notified and a sample forwarded.from there to the designated umpire assayer. .. \ .. After all weights and assays are complete the Omaha Office coepllee a monthly statement".showing the- weight of bullion, settlement assays, metal content, returnable content, gsldpaid fortand monthly settl*- mont showing the charges and credits as par contract terms. This statement*, ie^.checksd by.-.the-Tooele Office and the date used as final delivery for computation of production statistics. .* Accounting for returnable metal is done by the New Tork Office of the International Smelting eod Bo- fining Company. That office also makes settlement with the American SmaLting^and.Befiniag Cojqpany for toll charges on refining, ;*/. . c ' '2-': - if.= Blast Bag House Fume Shipped to Anaconds Copper Mininngr Co,. Greeat F]__a__ll_s__/_'M__o_n_t_a_n_a__ __ \ r-Vi " /- "Tv". . v. - ... Tooele blast bag house fume is a cadmium bearing product of the .blastSfurnaceloperatioo, / Potato is^ purities in the fume, treatment at the Electrolytic Zinc Plant' at Great~Fallsj:i*lijaited^to'"coeor two cars per month. There the fume is introduced to the zinc roasters in ox^r'to^iiqirpva^tbe'eolabiiityreX the ced nduni and eliminate part of the arsenic and antimony ahead of the .leachingTplantV^Xn ths.laacdiiiig plant; thm zinc and cadmium are partially extracted and the residue metals gtoo innttooitihthee^ramsalnln^-zzllnnc 1'p*lan`t res*id`ue.f~ar " ` merit to the American Smelting and Refininigg Company at East Helena,. Moxt'ana^^^^.::C ...; ... - 1 - >. A proposed schedule for purchase of bag house fume was submmiitttteedby^Hr^jSaplef: on-November*15, This schedule was to be effective on and after November 1, 1945 ancLwe*|fff-j^^^brthe -Jtaternatloasl ing and Refining Conpany, Ite terms, still in use, are as - Payment for metals: Lead Silver - Gold - Cadmium -- Wot assay, less 1.5^ x 90Sfr at New.Tork^prins.j^Sil-SO^'parjpoxmS?. f. Deduct one ounce from assay and pay;forbalance/at5 Hew Jork.'pplaaj^..^'; ^r.-.:L.;V-/. (904 price now substituted) -.:'r V* Q05w if ,01 oz. per ton or over,. atfjM.T^er^unoe. " 6Q& at price received by Anaoonda,-f*o ,b7ft-Bitck Kagls, Montana, vS- ' for eales in previous month, less.1547per/pOuad*^.T3s ''./.v.1 .* .5^. '*' Treatment Charge: $3.00 per dry ton, f.o.b., Black Eagle, Montana.; .... _ . I25j( arsenic plus antimony free. Charge $2.00 ^pertton'fo'r ' " ).1%1 in.nio '1 plus antimony in excess of .125 Fractions pro rat*'^1^ In letter of July 15, 1939 Mr. A. B Wiggin wrots to Mr. J.tO*.IUnSr^ifting tbatvahjawraga at Anaconda and' Tooa'la aasays `ba uaod` I` n ma' k`ing a.t't'la' mant` a f`or...iaaroj^/arsaai^q^roajter..realduf.V^Prinr. to that data Tooala aaa&^a had bean used. Pollening np Hr* Yiggia!j>i . _ . . _ Manager at Tooala, isggaated that aplit aaaap-a alao ba ujad on:-bag^biaa^fnaa ;nati'Palla^a'aaaya^had pra^- elouslp been used, Ur. Capias, on December 6, 1939, an^geated 'a .eplitting^ ffijof *t& 04' cadmlnb VSince < :So . , . ; -iiirife ^ pnyc b00122!^|^^ / ^ m O-Siafeittiatjl* ni.' LEAD PLANT ' SHIPMENTS ' - LEAD PLANT (Continued^ FSarJ Blast Bag House Fume Shipped - ' TT - . - ........ . 1 Anaconda Copper Mining Co*. Great FailsffifantanaS:-tContlnasd)frj;!<; ' V that data limits of ,3,* on lead, ,3 023*, per ton on silver and |V'* *v** established, Xha Anaconda Reduction Works Assay Laboratory, has ' ' ^J Cars of fume shipped to Great Falls ar~ wished at Tooele although freight''!* paldJaa&T* - ............ on weights at Slack Eagle, Montana- Upon receipt at Great Fall* Reduction*Department .a.sapl*`is,obtained. for determination of moisture percentage and assays. A sample is. sent to;Tooele-pithiatfletteruofitrans-, ` oittol giving Great Falls lot number, Tooele lot number, date received at^plant 'and weighed,: carf.naaber, *itight, percent moisture and dry weight pounds* Settlements are prepared!'.atiGreat F.allsl'r:.-41t:,a^cotecL'^, _ that rather than calling for umpires itien assays differed by a^re.th^;ths^sp^lttizig.'lliMit*>%repeats..froa' `. v.- both parties were called for* in all instances the repeats brought. the.\Msay*:vithiii.the^splitting'liiiits. .v Presumption is that if the repeats still exceeded the splitting limitsvua6*;,pf.fu^>iresJwc>uld.bemused,- Upon* ' r-sceipl of Heti.i^iier.ts by the Tooelo Plant the metal content la calculated``And^s-properly used ;in determin ing plent recoveries* ket aliurgical report is prepared shoving details of /shipment e by lot numbers, and also cocvposite data on all settlements showing metal content, metal.prices,'. *talapaid for,.freight-.and treat ment costs, and total charges and credits in dollars. The Salt Lake Cfficerecord*.the sale of fume on the General Took*. The charge is made to "International Smelting and Refining Cot,1;. Hew Tork*/and the credit to "Blast Bag House Fume Sold to Great Falla," .` Am: . Converter Copper to Raritan Coror Works x, Speiss from the Dross Reverberatory Plant is periodically treated at'thefold Copper Converting Plant for recovery of copper. This copper is than shippod as bars to the Raritan Coppei^JforJcs at Perth iaboy. Hew Jersey, A deduction of 5 pounds per ton of copper is mode from the copper content andjthe balance is returnable, . The silver and gold are returnable ICXtf* The copper is returnable 60 days after/sampling and the ailver and gold ninety days after sampling. All charges for treatment, and all records pertaining to the return of smtala are handled by the New Tork Office, ( .. ` '. Lot No, 7, carried as on hand at Tooele at June 30, 1943, was hippjun*,28^ 1948i&Xt. 8,was. shipped. . on July 1, 1948, Car containing lot No, 7 (NIC 133796} was damaged in transit^and.3 pieces'of ;$opper were lo"t,, The remaining content of the car was transferred to car Hl& 38123kndJAXEived at Raritan,*:August. 3, 1S40* Lot No. 8 arrived at Britan on July 29, 1948 and was taken into;:acoou$t^ as a July .1948 receipt, pre liminary returnable metal content being determined on the .basis, of. T^Ce^aeW^s,^but usingjRajltan.weigiits* . The loss of 5 ppiieecceess ooff ccooppppeerr wwaass rreeccoorrddeedd aass ""Friivvee (133)).. ppccs*^^shohr^t.!fjJ5f^fa^i^aRjRaarriittaann^-)CtCooppppeerr'i'lffoorrkkss' AArrrriivvaall __ '' Notice, Personnel of the Tooele rO^rfrftic*e*- sta*'+ted that tha .Tooele.Talley'Rafl'rc>adihad{investigated records ~o~n * *; the number of piecees loaded. See under "General Remarks - Shipaents>from:llead^flant'- Converter'Copper Lost in Transit to Raritan rCoppor Works." ? : f Due to the delay ln> arrival of these cars at Raritan, lack of .final^assays.and loss in'transit, decision was made to defer all adjustments to production until August, 1948,-wbenifinaljgelght* and assays were avail able. As both cars were produced in June, 1948, production for thatfmontb;waa^ucepted:as fiaal. untll' ad- iustmsnt wee deterained in August, 1948, , r-',.. *'3r/r ' ^ : >*; * m* r '%Tf As stated above all treatment charges are handled by the' Hew :Xork^0ffice3El,iles|inT,the. Ore,,Purchasing Department at Salt Lake yielded the following; info" rma'ti*on on t`reat'ment**ch* ayges^Ator. My, i948, last mon" th'on ' record? Base rate per ton ' . - :f " OfeS-; VU?, HP . v . , :- 20,0000 Hay, 19(8, labor rate .133.83#,* Base labor rate per hour * 38,gQ-&j .4: ,'83.33#^, June cost of fuel oil per gallon Base cost per gallon '- 7.4B5f. gB60 : ' 4,393 * Total Refining Charge per, Ton 7160 .. : PNYC 00012260 /y LEAD fUNT % 'Vif.' ' ";>? ' Cr? .In 3- " ' / V`: * ,. . .._ , r ............................ 4 ,t I^ch ,4,iy a "Daily Cur Report* i.3 prepared by the Operating 0*p4rtomt'.aho*U>g';C4r numbers of.`prw'dumped at ntcr.h pilio, These cpi* r.uybevr are then checked to the report "Recordof..LeadOreRsctived*'sfcch gives. t'v- ^.i'oaa, l .ire ar.d net weights cf the car and its let number. Having thus secured the lot jjusfcer the`car RV Jdi--.Ufied on the Ahntrv/'t. r-f Ore Received which gives the full detail'of astal content. Jbe lets, which have t;n ot.-red arc then posted to a summary or disposition statement where totals-are kept by shippers and by pile:- to v-kich ore has b?*r. stored. Tho various storages are then postedit a,"'Record of Stock Pile , Ore" ehicfc nontainsa oututary of the inventories, receipts and removals of 'stooic!pile'ores.^V'i ^ : *'i .r ; ' ; ' ' - :.'.'hen Oi^s are renovsd iron stock piles, scale tickets are sent to the^Mstsllnrgical'tAeccuntiag'Depart ment whei-s tabulations arc "side lr. a "Record of Deliveries Between Depertasnt*j,yif;ypon removalfrom stock : piles the ore 1 3copied cr* the laboratory reports assays ty which the metal`qontec& is determined. The SairplAr.g i>yr:rt r^n- alec ohtuir-n the ouisturc percentages. With the'information'then complete as to the weight,and -r'-r?yj, the ilotellurgical Accounting Department then calculates the'netal content, which, along with net u:*J <'vy weight* are posted to the "Record of Stock Pile O3rree.* 1'.H^j^tg^hus e^e--^d-jt*h->e-- --recejip.t# and recKival-t a nan inventory is arrived ats *&.*** , ., .... Sous -.::c*rt.ions to the abo practice occurs due to impossibility of balancing' out stock piles .fcyj;` - acr-ays. For r-uuaple, a pl3* bn cleaned up* Laboratory assays are reported in the usual way for -. deterriinir.' * *.i&l content rf tt- cleanup Tlvis metal content ae thus determined may vary considerably from remain' cn the "Rcc'-^o ?i Sc'-rK File Ore-" The 8ssya in those instances are disregarded and the l -ok invrr.tr-I3 written off Cicdlarly at times some metal might be written dom to nil rfxile others . v^T-Jn in `.mtt inventory Lab-rrays must be disregarded in instances of this kind. When negligible q-j.-.wVJ.isr w n-.ct.al rercK.-.n in i'v;entv,.~> the laboratory assay on rrnovalj&ay [also be lowered to maintain metal in the inventory Thje?. pra'-eduras are common in mefcaHurgical.'iaccounting practice.. The al- t^rnstive tu-v.-cd is bo oak* rerac'.-als Ft the average of >hat was remslning->Ln. ths'lnvegtory-in the month prior, V*xz`> the mnteriai is cf conslntent nature this practice-is very practicable, and in`some instances the st.c-k iile:* tt. the load plan', arw handled in thiLss maroer. H" owever, d..h...e..fto-th` s coiq'plax' ity of' the` ores, th* pzTeod !: - os outlined above ?c:r,r, the most satisifactory. ! '; i\ Cr*. "c Rsai.dc^w ''*rva--* Sm911 irut Piat i Cable on Hand < sn,fin(t,piyUBaV-f^ -h.-: /Ino't without sxcepLi'.;; receipts of ore a_n_Jd .ottvhe.r._m__ai.t-eIri.aIl.s are. ldj.u._n__p_e4dtit.o storegeibinah; COWza/. i*r.tlcn of bins io known .^c "ilecciving Bins" and ia lettered conae^otively^fron A.throtagh 3^These~ Lins cr rairoling mill bins Usually the inventoriea are determined .by; referepce i-t0/diiq? . report .whoK.*r.^ B'cterials entering th* biris.. If the mater.ia.l.has no.t. .beec.^. aajB^dftbe;rlotVor..lot.a en. ter.ing the uia are carried on hand Data is. obtained from settleasnts*fyw`^` /****' :'-v ' . , v After sampling th oze :conveyed to lead plant bine by a'syrtek.69onveyor belts'.' There are 2Z sintering plant charge b'jn3 >cch having a capacity of 120 tons'of ore or?240 tons of^ccocectrates. r^enuss the ore which .*ntor<r- i^e^e bins may be mixed with othez^orea lfeil*(h*cesaary.te;Qbt'ain the in.;. v*.v.ory toiuwa^es by res.aul .1 segregation later made from plant reports aa'.to.Jdnd J0fr0rt>?^';`- stored. The clerks from the V-ta.Uurgical Accounting Department take/measuramenbal of.`the bina^at .8*" o; the first of eficn B-j.vth Tne capacity of all bins ba/preilousljrbe;i'determiDed'?/aad'_a;re- cord is. available giving the voliase in cubic feet for each -foot' depth^or^conTerselyr.the^record 'shows' . the voivicn for oach foot e^pty depth. After having measured the.bins^an^^taiaedJtheyirpluma,oa. hand, the volume is multiplied by the weight per cubio foot applicable ',taithej^typejof.''materl'al1atoreid.- vThese $ wslghts Lave been determined by the Research Department. - Since, ores^y|^t.consiat.enoy^and^.weight,.the Sampling Department also from time to time obtains weights on; ores'fraj^veo^oua^shipperei'.After th* of ore in bins has been determined, reference is made toTa/Sinterl&'Ellant^allytBln^&eport which records the estimated tonnagrs on b:^id end the receipts to- each bin identifled'aa'to^kdad,A1 segregation of the tornage Is thus :<o*ibl bvy *Xn`t num` ber and` t"he me...t.a..l.l.u...r..g..i.c..a...l.,...inven*to'ri*eayJare .dJ eAte"r'm*in-ed* *b"y assays . nnd payment date from settlements *wUertl- - In ?d<iitior. to the 22 3int-*ring plcnt bins as abovs dsscribsdi.*re[^^^lL)aiiia;je4cbthaving a ,, capacity of 110 tons and which hold the various constitutes to'-tha'biastxuraace^chsrgtir^.Unsaapled y matsrlsl such as coke and scrap iron are stored in these bins, as well4$.asTaihter,-limerodCi'.cleanings, ' .Inva^t'-irr of these bins is determined by measurement as above deessccrirbibeed.d**^,'--..:*- .\ .-!"V ` ' * ? * ... . Air*- for storing lewd ore.* are "kiocallaneous Binis1* lettered A' toi.O^ilnnccliuwsliTvei and "Old Bins* uwiberr-' \ t' 11 inclusive Lina are uaed for both lead plant' ead'eulphlde.' concentrator oree end arc .r.v.i.cured in manner described above. mi PNYC 0001. 2-2e6a1 r,?,):' ."'i 1; ' -,> - - Sc---: IBAD PLANT INVyJTHPIBS - L?J>D PUNT (Continued) Ore. Concrntrstew, Rosidn^s hp.1 Scrap Coble on Hand at Sintering Plant and Blast Fumaco SrraltiwT Plant'1* (Continued) . v,,s.4y^ ' * '____ Customarily used for sulphide concentrator ores are bine IB to*lOBdiclu*ive^HoeT*r7!'i*0M 'lead oros were stored in these bins during July 1948, Inventories, are..detera^ed^'iwaruwLBaatVyelthough^ ' ' during July 1943 soee lots retained their Identity and inventory was'determined-;froaiactualilot.weights and assays. * .. *' tH .'i'V . ' In addition to the above bins some storages are made at "other place*-* For example, aoae Raritan residue was stored at the Ojd.de Vfarohouse and scrap cable at various;locations. ~Ho accurate reports ' are received concerning th?e inventories and reliance is placed by clerks on telephone calls con- ceming them, . '. ? ; *' After all inventory tonnages of these materials have been .aseeflb'ledtandridkmtified'by lot number, : the metal content is determined by settlement assay. For deternining'plaot; recoveries s segregation is made showing the plants to which the inventories belong. This segregation;appears on the metallurgical report "Ore, etc,, on Hand" to which all inventories are posted* , Sinter As noted in the Synopsis of Plant Operation the fine material treated at:th#-lead plant, such as.coiv- cer.tratee, flue dust, etc., requires sintering to agglomerate it before including'it intbe charge for the blast furnace. The material fuses slightly and forms a clinker-liRe mass which*!* discharged at the end'of the machine and falls into railroad ca*s, either for ismediate treatment, or;for storage* The sinter in ventory at July 31, 1048 consisted of both car and bin inventories. At the"end of each month the Accounting Department takes a car inventory. Scale tickets are received by the Metallurgical Accounting Department and a tabulation made showing weight of all material reported on the Tram inventory'or. "Switch List,* -The bin Inventories are measured and tonnage determined by application of weight'pep^aibici foot' to? measured volume. The car and bln inventories are then combined for Inventory purposes,'>'Aiunlfjorik.soisture.'of Td^ .ls used to calculate the dry weight. Ths l.V>>orettery makes assay deteiminatioM'v(M^a)inUily,'sspls^*vand these asss*ays are used to arrive at the metal content of the inventory* ' Calcine ` ' .-1- '* ' \ * , . - ' . - Spelss from the blast furnace operation, being high in arsenic is'rossted^forvreaoval of that element* Spoiss is stored at stock pile and periodically roasted in a McDougaU'\roasting^furnace*,;,.7he resulting cal-' cine, having substantial quantities of copper, silver and gold is`storedjat^ook^pile and^lateriremoved.in Tooele Valley Railroad cars to load plant bins for retreatment. For'ai^licitj^thlsf'stockr-pile^and storage bln inventories are combined on metallurgical accounting records,\tThe.;bi^ii^ti&oiss,[are Calculated in-the. same manner as are ores; i.e., by measurement and application of weight;;p.arJcubie}foot to .calculated volume. The weight of stock pile removale Is then adjusted by the bin invenboriesfto.4dstemine the lead plant treat-, nent. Providing there have been additions to the stock pile (none during^July* 1948) laboratory assays are v used to determine metal content. The metal of removals is dteminedrby.vtaking^an average.of the first of month inventory and the receipts. The treatment tonnage is used.as-.the. reBOvairand- the remaining Inventory ' automatically includes all inventories, both stockpile and lead plsnt^bins, ^Independent :tonnage.of each may be calculated, however, if desired. The method'in use is tbeaostrisiaplsfsnd . direc&*'^^v.' ; y -c Sintering Plant Cleanings, Btc. t.: 4 At July 31, 1943 the following inventories were grouped under this_;headJngtf;j(l),-prerosat (sinter), (2) flue duet, (3) pond cleanings, (4) belt cleanings and (5) yard, cleanln^^^^^>^',: " The object of the sintering plant operation is to obtain a product'suibaJ^l'e^in pbgrsical^characterlstics - for treatment at the blast furnace, and to reduce the sulphur content froa^ibodty'12^ in' the /charge .to about - 1.2# in the sinter. On the first sinter, or preroast, the cakes fall'ontpJa'pailconT^yor to^be delivered to ' the preroast crushing plant. On the second sinter the cakes fall onto sgrii*.3yitthe'-xCoarserinter being by passed to railroad cars for delivery to the blast furnace charge binsAand^the^ines ,fallirig-octo aipan con- ' veyor for retreatment on the preroast charge. The preroast sintering'islcsnrl^^j^jt on^.thepflrst^machines; i.e., those serviced by the pan conveyor. When more machines are requir^StlBudnteriimust^be^"discharged into railway cars and taken to the preroast storage bins without crusWng53(|Th'jjiter^frosr>betfirt'6 machines is discharged onto the horizontal pan conveyor, then throu^^s'lcnuhjjig}plantj.sad^to|preroast storage , bins. They are located at the original charge floor and their boppeJeed^otVtoithe;original/gathering belt. The bins are measured on the first of *ach month to obtain the cubio^fest^oX^qj^entc^l'^Tlila'-wblaAS is then multiplied by an average weight of sinter per cubic foot to arrlve\atiUt4l*t<^%ge*7y^^^ makes assay determinations on an inventory sample. The Metallurgical. Accoxinti^iDep^rtmenttcalcviat^s^tbe metal content of the inventory from the assays as reported. . _ .:f - j&Mp: : iv. LEAD PLANT INVENTORIES - LEAD PUNT (Continued) SInterin* Plant Cleanings. Etc, (Continued) "1 . * "^av v'- -';'r * The flue system Inventory at July 31, 1948, consisted of duet In the^ollgedngri^eations'UO^dry flue vt-j or "Header" flue, (b) moisture chamber, (e) main flue, (d) treater intaice,'l(elJetack-'be^'(f)''etoclcpil9'aad ; (g) cars and bins* The flues leading from each sintering machine r.e~SO;incheeiia ^diameter, and made of sheet steel. The flues of each pair of adjoining machines merge before-entrance.to'ithe-main flue.lsystaou, The first section of the main flue system is a brick structure, 10* x 14*. x.l41*._The;,eoar*est*mat*rial^ the dust- V mechanically carried over, is mostly deposited in this section.of the. flu* < This flue _i-cleaned about once ' a year. On the average 1J tons of dust per day is deposited in this '.header/eeetipn.&J.ts.. ass ay. will apprcoci- . mate that of the charge. The gases pass from the brick header flat .into ajbrici^mpiei^tfeichamber,^* x 27*. x ' 110'. Because of the increased area and a nutcher of water sprays the_;gases. arS:.bere^conjldrably'.cooled. .In 'V this section finer dust settles than In the header section. The water aids inlthis dxst settling. .About. 1$ tons of dust and fume per day are precipitated In the moisture chamber, .vThs water, is zun.ipto a^pond where separation of the water and solids takes place by evaporation (see below),..' The moisture chamber.-.delivers . into a third section of the flue (main flue) &lch is made of brlek and is 10**3^ 14*.x 240*, ' Ihisi-flue' section delivers directly into 3 treater intakes, each 7* x 6* x 60', .The 3 .treater 'intakes are.-equipped.with, auto- satie dampers which control the distribution of the gaees into the 3 treater^sections,} Tbs'treater, proper . ' consists of 3 parallel horizontal flues or units. Each unit is divided Into'4'sections. - The gas stream - flows through the sections and the dust is electrically precipitated. Tbs'precipitated dust :is.Tremoved by beating a yoke that supports the collecting grids with an air hammer,' This isidcne' automatically once every two hours. The dust falls into tar lined wooden hoppers located under the .units, A screw conveyor runs . along the bottom of the hoppers to remove the dust to small oars. The small oars .are band trammed 'to larger railroad cars, the dust in Hiich is unloaded at the sizfcering plant charge bins..for retreatmant, A fan . blows the gas from the treater sections into a 130 foot brick stack. Occasionally some flue dust'ls stored . at stock pile and in storage bins. Determination of tonnages is made by .the Research Department .and.periodic changes made as required. Fixed assays, determined by prior sampling, arw-umed/to'determine metal content. - For further moment on flue duet inventories see under "Contents - Inventories':-;Lead Plant - Sintering Plant Flue Duet," . fcfl !> - . v^: r. ' i'4* As noted above, the water from the moisture chamber carries the dist^and fuostfout'.witb lt to'a settling - pond. The pond is divided into two sections, one being filled while the 'other'^ldrying and waiiing.to be cleared. Inventory in ponds is by visual observation. At periodio inter^^s eacbpond.is.:eleanedLand re- ' - moved to stock pile, actual weights being obtained from ccotractorjlmakln&^ei^ur.^^ . also obtained on removals, and monthly moisture percentages and' assays :Me^ttsattdi^is^t^di7,;i:weigbt and..*,:-.-- metal content. Ur, Floyd reports that difficulties are mcountei^^in^gettij^faccurft^viuventorlMTat pile. ..'*.' ~ due to mixing of pond cleanings with those from other departments,^'Adjutmentm*are*"nade*wben'pile'has .been v . cleaned up and new inventories started. This occurred during ;July.l`948. -`;The-^o-ld- _p. ile.was o-laaned..^..u..p..,....a...n..d.. -..-....' removals after July 15, 1943, made from the new stock pile. Belt and yard cleanings are sacpled and aoiihly moisture-and aasay^diraixistlon3''are. made^for.-arriving- _ at dry weight and metal content. The cleanings may be in tins, ia'TooalerVaU^,railroad cars^yard or. stock v piles. . The bins are measured and weight calculated according'.to mrtbt^p^rto9f^^escribe>4f,fora;ores,'^ Actual- r weight of railroad cars is obtained, V.^ When a dross layer is formed on the dressing kettle it is skimaed-offithe^top'-of the lead bath by means of a sieve ladle operated by a crane. The ladle is set over *n;eaptyIdroM kettle:.and.the^moltQclaad.is . allowed to drain out. When most of the lead has drained oi*,'the ;iadle`^dr^e:iiJs^irfiiovedJby.'.thej;crane to the Dross Reverberatory Furnace. Method of dross removal is ,iiiBilad;on^ihHhe^60;i'ud)22Q^t'w'^fossiag kettles. At July 31, 1943, the dross inventories consisted of .thatVla.Tc^^T|iley^Wiroa<i?oar^aad'aoms in storage. Actual weights were obtained on the railroad cars :andjthe'storagepile was^eftiaate.d/by.,visual ' observation. Assay determinations are made from a sample of drsson*hand,^*;Tbe::assays!'are applied to-.the r. total dross inventory to obtain the metal content. The dross'll assumed:to;bsJdry,' no moisture percentage being need, ' Blast Matte (Dross Reverberatory Matte) --------------------- 1------------------------------- -- ..>;y m * This matte is a product of the Dross Reverberatory Plant,, where'!matisJrsp^iss.'and molten:'lead,are pro duced from dross. The matte is sold to the American Smelting.and BafiningXpdmRJDy,t. ths speisi is.l'periodically treated at the Copper Plant'converters and the lead is retura^.tothe'DressingJPlant.`. The inventory at July 31, 1948, consisted of matte in (l) Tooele Valley Railroad oars, (2)`torage.bins^and.(3) iJV.transit to ths American Smelting and Refining Cocpany' at Garfield, Utah, The bin irrrentory'iSideteraiDed by, meaeurment and calculation. Car weights are actual. Shipments to Garfield are considered;,finalioaly.whan^settleaent.is com pleted. Two cars were shipped during July, 1948, one on the 22nd and^oz^on^Lhe^Slst^.Seither^had been _ settled for at time metallurgical reports wers in preparation and; esrejvcarried^n -the.^Tto'ry,V*,The..metal . content of the bin and car inventories is determined by assays on'!a^mozd;hl^Maple,^Sa.ch'JCA^shippsd to'< ' lr Garfield is assayed, metal content for Inventory purposes being deteimihe^on^T..................... ..... Final settlement assays however, are used on final metallurgical dcta^?^prji LEAD PLANT lUVBMTCRI'g - LEAD PLANT (Continued) Lead Residue "Spoiasf - Speiss may" be from the bleat furnace or the dross reverberatory furnace.TiThe former* is^usually stored ' . , and periodically treated in the old McDougall roasting furnace for reiDoviX%'of^.arenic^;tbe4x^sultiiig calcjjw.:...ec hoing returned to the Sintering Plant. The speiss from the droaa.reTerberfJUtf^^imaca^a.:t^dghj'-jtofrcepyr.&* Vy content, and is stored in stock piles for future treatment at^the Copper;.<Scvvij^ag^|piaat^fo7i<r.eooTez^uid^v ' - * production of copper. Separate stock piles are mintained for ach' class^ofip^:aa^V.aai\duglj^'^uly the dross reverberatory speisj. wao also segregated into two seperste .-pilssi^'Tbi.`'inventoryi.atJJuly,. 31,:194$,' consisted of speioa in: (1) stock piles, (2) Tooele Talley Railroad care! and'-(S)'cooverter-sladlea.;' Additions to, or removals from the stock pile ere by actual weight of cars. Inventorylln. railrcad-care ia taken by . the Accounting Department and scale weights obtained. Inventory in converter.ladles is.determined by .visual, estimate. At July 31, 1943 there were 42 tone in ladles. Monthly sample*; are'rtaken. from which .moisture', . percentage and assays are determined for arriving at dry weight and metalyConteatjof (tbe -inventory. 'For* further comment on this inventory see under "General Concent* ' I"nventory.*;Change s'"to" Arrive./at.'Seaeonable'^' Recoveries." Blast Cleanings v ' This inventory consisted of furnace barrings and cleaning from around the furnace. Both ere loaded into cars and returned to lead plant bins for retreatmsnt. Actual weights, are obtained on fully loaded cars, although the cleanings are accumulated during the month and are estimated visually if.cars are only - ' partially full. Bin inventories are measured aid weight calculated. Monthly ^inventory sass&es^ are taken upon which assays are deterained to arrive at metal content, . , ' V* ' 4 Foreheorth Material . '` 5'^*' Slag and speiss are tapped from the blast furnace into large moveable foreheartbs. Separate layers arc formed in the forehearths, the slag being tapped for treatment at the Slag Treatment Plant and the apeiss,be ing tapped for further treatment at McDougall roasting furnace for removal of^araenio.After the tapping is complete the cold shell remaining is removed to the Copper ConverterbuUding^^ere-it-is.broken/ap by necbaiv* ical means. It is returned for retreatment st the Sintering Plantfor.:the^Bl^V?uraace,<'The inveri-ory ei-t . July 31, 1943, consisted of forehearth material at the SinteringiFlastfbins^u^atritht^Converter WU.ding ^ The inventory in the bins is determined by measurement and calculation.!)j^Dae^inventory.at; the Converter '* building consisted of 30 tons on the floor, 10 tons in ladles axul 30!tonsfof ^fbabtons* or high lead content ' material. These tonnages were determined by estimation as cost of weighlsg'would be prohibitive.- . A saaple. is taken monthly from which assays are determined to arrive at metal, oontent- ` Blast Flue Dust ` ' ' 'r:il *' i' ' v ' * -v*-; t'". A brief description of the blast furnace flue system le as, followst^Tbe gas offtake ls looated-ln the . back of the furnace Just below tbs charge floor. The offtake runs'downsar^.,3Q;feet'.infco';a `1argo dust collect-' ing tank 20 feet in diamater and 18 fest high. The else of'.the'tack. allavaithefgaees. to lalow.^down and drop part of their dust burden. Flue gas passes from the top of the tank'intone'sheet iron`balloon'flue .that' : leads to the baghouse. The dust collecting tank is equipped withf a^bopper^bpttom that:*di*charge* onto as-*: -i. conveyor belt discharging into a railroad car and returning to. thej slote^.|ci^uit.$ >*b*it.Iron bailee*- flue leading to the baghouse has a hopper bottom to facilitate cleaningfwniCMlaTdone'rabut''Itwice'a'year When cleaning, the hoppers are opened and the dust is allowed- to fall^ou^pp|^h>5ground.3^The*du^. !is vir shoveled up into dure> trucks and returned to the sintering planticirciltt^Sffl^^'lw^^!^^^?'^''' ' ' 5~ y :' Tonnage in the flue is usually arrived at by estimate.;: Cleaning of ;the>flue ie done.;,aboat;twice a : . year and approximately 100 tons of dust are removed each time. Altering Jnly^l^d/:.tbe^flne/vWaa;torn down to. be replaced and all dust was hauled by truck to stock pile.! .Conservativr'fixed^asaay* wereuife^jCor flue inventory. Coaparlson of fixed assays with July 1948 ahipasnte|^<^ij^^j^^l^^L]a:iajCfpll^ia>^\^:. Fixed July 1948 Lead . *20 20 51.90* Copper ` ;1 Silver ii 0.BC*'- :.;V- 1.20* - r10.65 jo/t^D.05vo/t^ i` *' ' . Since assay on feed Tories and will produoe dust .of -rarjing'grade HheconaerYStiTeassaya '** used aaea aarranted, especially oinca tonnage is not large. A . .... . . C: LXAD PLANT INVENT CRIES - LEAD PLANT (Continued) Blast Bag House Fume The baghouse ie a brick building containing 144 woolen bags that are'Cdjfpet^loogjand^lS'incbeis in,,:., diameter. By changing pressures in the baghouse the bags are collapsed,'^loosening^he.^dust^hich.falls.. rV* . into the pits. Once a week the bags are shaken by hand iron the inside. .IMs^ebaking^aoVee .tlie'idusb *v> that could not be removed otherwise. The iist in the pit is burned once'a week^/J.This is done^to'elinker the dust and thus make it easier to handle. Metallic cadmium, metallic arsenie,ielementai sulphur and . email portions of coke dust furnish the fuel value for this burning,.. The pitsJaresflatlbottoaed,- and the dust clinkers are removed by laborers and returned to the sintering plantloircult '.! The bag house : .. collects about 4$ tons of dust per day on a normal run. When the cadmium in the*Xlue circuit.builds up to,,.:,.. a high enough percentage to warrant its recovery, the dust is sold to the-Grest^Falla Hsctrolytic Zinc Plant. A steel downtake flue connects the top of the baghouse to the bottom': of&the stack.*,,A.200.foot brick stack is used for the disposal of the baghouse gases. Three inventory classifications were'used on metallurgical inventory for July 31, 1948. They were (1) intake, (2) pits and (3) .bins and cars. -'I . fixed tonnage (SO) is used on the intake inventory. The pit inventory is reported monthly by.the. super* ; intendent who estimates the inventory by observation. Tbs car inventory is ^byiactual weight >sad the bin inventories are by measurement and calculation, using am weight wo.f wabwotut.t 108*pouads per VcUuVb4iWc .foWoWt.^Ibe .**... tonnages on the three classifications are combined andd aa mmoonntthhllyy llaabboorraattoorryy^'aannaallyyasiias oonn 1ba*'h du-t shipped to Sintering Plant is used to arrive at metal con..t.e..n...t.......M....o. isture percentage f'or calculation of . dry weight is also obtained from this sample. Converter Flue Dust As previously mentioned, dross reverberatory matte is treated in the old oopper. converters for re-* covery of copper oontant. When the converter is blowing, its spout is turned into a hood. The hood ' connects to a flue that carries the fume to a brick moisture chamber containing'-.water sprays, which pr+- . cipitate the dust. The dust from the flue is removed by means of hoppers on -its bottom,. and the dost ... from the moisture chamber is removed manually when the accumulation is sufficient. .^Tbesevtwo itessjoak* . up the Converter flue dust inventory. . "' ,, Converter Cleanings !' ' * , * v . _ \ . . .. At July 31, 1948 the inverfcory consisted of cleanings (1) in stock pile, :(2) {la storage -bias. and cars, (3) in transit to the American Smelting and Refining Coap&ny aid (4).on converter, floor..iThatfirst, two classes of Inventory are determined by bln measurement and calculation'and^byisportfof/car^weight's^aad V inventories. One car had been reloaded for shipment to the American Smelting^dJBsfiaing- Company/at 'Oar- field, Utah, but settlement had not been received and car was retainediin'-inventoryi- The 'Superintendent . estimates the floor inventory. Metal content of all inventories is-arrived fat iby{laboratory essay. .. With the exception of cleanings sold the inventory is returned to the blast furnace for retreataant',.1;';-' Converter Baa House Fume _ Foll-c1 miJng 1thUe .c__o__n__v__e_rt. er mo1 i-skt_u__r_e 960 woolen bags. The pit bottoms are r r {. _c1_h_a__aSber *is- *thl_e_ \bagIh__o__u_s-e,_e__o__n_si.truci.t-eJd*TT_ *o:f<ibrIic_1k. anjd ih__a__vtlng^8?pita_ wliituh* *7* shaped. A worm operates'in-tbe^bottom'of -'.thei. "7* and "removes^ ths --S3-'. ?i. dust to railroad cars. The dust or "fume" is returned to the sintsrag:rplantfcircuit* ? The..baghouse gases, upon leaving the baghouse, pass off to the atmosphere by means of a brickratack*'fe;-. ' v - * . ' . ui-.r.. j-fv ; The inventory at July 31, 1948, consisted of fiime at stock pile, and Jji pits.k^-Ihs stock pile was accumulated in a prior month, there being no storages or removals during .July '1948.*#Tbs pit inventory was arrived at from data supplied by the Chief Testing Engineer. Oa April: 5,":1948il'"|afterfc.a period of converter blowing he measured the depth of fume in ths pits, calculated the volums,.^obtained,a:w.eiiht! per oubic foot - (29 pounds) and a laboratory analysis of the sample. From the data';as*thu*]Jobtidaed the^inyectoryzwas.calJ . culated. Since that time the converter operated duzlng period between?Juae^Sltand ^June1; 30;^1948.]rThe' test ing Engineer then obtained new measurements to arrive at the volume of'fums'dfpqsltsd during tb**last run, ' together with a weight per cubic foot and assays on the new deposit. ,tbe weightier cubic foot was 20.5 pounds. The calculated metal content of the new deposit was then added tortbjtprior inventory^to arrive at the total July 31, 1946, inventory as uapd. . . L. oad Bullio. n -.--?W^jWweSfP-** -- & >i< Lead bullion inventories usually consist of lead (1) in blast furnace^(wlls)>.(2)/in-ksttle. drossing plant, (3) in dross reverberatory furnace, (4) metallic lsad^frpjhjte^ ducts.;at. C.o..p..p. er C building and (5) in transit to Omaha, Nebraska. . ...... During operation of the blast furnace there is usually 13 top*, f/molfcea^ei^'whicbjisVcarrisd aa a constant figure. At July 31, 1948, the furnace was not in operation^ > pnyc 00012265 h,:'' LEAD PUNT INVENTORIES - LEAD PLANT (Continued) Lead Bullion (Continued) There fire four droeoing kettles having a capacity of 60 tons fash. Ef viuaT oUrTtioa an ti**te .r';- ^ is made of the tonnage of molten lead in each* There are also twolargar.kettles-baring capaeitle*.'of .1201: / * tons each. The tonnage in these kettles is also estimated, visually..* Usually^eoahi,neri. with,,the. kettle.dn-. Tcntories are the weights of any lead "buttons" and cleanup on the floor;, Sachyfbutton" or-piceioX>bailie**:iSi weighs an estimated four tons. Cleanup consists of spi 11 ings. co. the<fXoc^/Landfi'aIeatinatkl,Tlsna\1i The dross reverberatory furnace contains a constant $0 tons when in operatlon. fcAtpuly>51,--1946,:the furnace was net in operation and had been cleened out, having no .inv#idory,^^;^R,*ir5-^'^ri^Ty`'' -:-- Lead in the converter building is from lead plant by-products and la oot^ intended for'treatment at that' plant. This inventory at July 21, 1946, consisted of cleanings on the floor*- Estimate of tonnage was made visually, *: `'V! *;V*>- . -,,vi . " ; ;rr ' Lead in transit to Omaha, Nebraska consists of finished bullion billed fromjiTooale but-not'.taken, into ; receipts at Ctaaha, The Omaha plant sends 3 reports during each month .ahowicg'the/weight of bullion' received, '*>' the Tooele lot numbers, the Cteaha lefc numbers, date received and estimated rnetalT content* Upon'receipt of . " the final report from Omaha sufficient information is available to determine-the:invfntory in transit* Any cars shipped from Tooele, but not taken into receipts by the Ctaaha plant are carried as.in transit* ' ' Lead, silver and gold content are carried on the inventoriee described* Aasays on silver and gsld art applied to tonnages, lot numbers for which are available auch as lots in transit,.r/buttons* about to be shipped. Lead assay on monthly oonposite sample is used in determining lead.content icf .all bullion Inven tories. * r . Converter Copper .: ' > ' ' - ' .. Converter copper inventoriee at July 31, 1948, consisted of two elasauacations, .(1) at Tooele and . (2) in transit to Raritan Copper Works, The total inventory *t Tooele consistedVof. 68 molds.of-which 3- ' were Lead Plant inventory, the balance being carried by the Copper Plant, .the.'basis.offactual .weight, the 68 molds have been carried at 856 pounds each* Metal.. c*ontent . -w--a-s--------* ' 1 , 'v assays on copper from which the molds were' made* Any shipments of copper from the Tooele Plant which have not been,received'at.'Raritan CopperWorks are; classified as in transit inventory. The Raritan Copper Works forward*.,a; ^ta^S^tnt*;.forjlote.in-".''. C- cluded in each months business. Any lots Dot included are for Tooels' a`'` Sci*?.3$FcTMov ;u;-nxt ;;\ ^' * Yy ^ ^ "4 ~ fowf!rV:.'!;- .i ?&. -- ' ; ' ; - InTA*'\ ' i'-w ,r*v . ,, it...' PNYC 000A2266 4 , *, sue THSATUSNT PLJLHT ACCCUKTIWO PRDCSDUHS TOR SLAG IHEATWSOT PLANT For purpose of determining the profitability of the Slag Treatment Plant acoountingreoords^ar* kjpt.;to:./.- show cooplete cost o.f material, sales and inventory valuations on the (. 1). _C_o_s__t _o__f__mtaetrelraial.l. TThhee oonnlyly mmaateterriaiall rreecceeiviveedd aatt ththeeSSlalaggTTrreeaatmtmeennttPPlalannttddg^rirningg,; July;/lw'8jsas;"slag,v^;A:.'-'.; Cold slag is reclaimed from old dump, and either goes directly to tbs Slag TZreattsaiiBaCnt^^Pla^Bbo''ro.rt.o'to. t.thhee'*bblla,sst *. furnace noff tthVe>* TLe*aa<d4 CPllamntt thherpeii i< t+. becooiee pono.-neliyxuerdf wwliftchH ftVh>e nmsat.ateiHrials ttryeiattxedj asaa*AdJ.uil.ltt.i4matelyJr4lsm >dUe1l^ivered a*-1 '* ? long with current slag to the Slag Treatment Plant. ' The latter slag is usiudUy.:t*raadV?iK>ltsn?ajad:.is the major slog introduced to the Slag Treatment Plant. To determine plant profit it i* necessary, to arrive.'at. a-cost of . this material to the plant. Inasmuch as the purchase cost becomes a revenue or sale,of tbe lead. Plant1.and also determines profit of that plant, some endeavor is made by the management to.establlab^a'tranafar cost-,which will be reoscnafcle for both plants. Overall profits are in no way- affected by such. a.transfer* ..Metal content of . cold slag is determined by actual assay. Cold slag to ths Lead Plant blast hrnacs.tiB.:al*o''sampldcaDd ;ae*ayed^N From the total molteu slag delivered to the Slag Treatment Plant (tonnage detenelnedVty. iron: contents and assay): the tonnage of cold slag say be deducted to arrive at the molten slag produced froa'.cuyrent .treatment \ (2) Sales. Sales of product art made on definite contract tens. During July^lMS two major products were sold to outside corporations. Leaded cine oxide was sold through T&rioum paint' companies to 4ioa shipments were made on consignment. Reports are received from these companies monthly giving status of- sales and in- - ventoriee. Ths other product sold was deleaded sine fume. Sals of this product was'Jmads.outright to International Minerals and Metals Corporation, Bartlesville, Oklahoma. Contract specifies definite.terms of sale. Deleaded' > sine fume was also shipped to the American Zinc Coopany of Illinois under contract providing.retarn of d0 of the sine content of residue from that company treated in the Lead Plant. In additioa.toisales to outside companies some leaded sine oxide (lead fume) is returned to the Lead Plant for further recovery.of Its lead.:' Sale is made on basis of schedule prepared by the management^ accounting principle being in conformance with that outlined a bove for transfers between plants. Direct sales to outsiders are credited directly to sales accounts. Con- - signment stocks are held in inventory and are credited to salsa only when remittance is received from consignees. Freight on consignment stocks are charged to "Prepaid Freight on Leaded Zinc Oxide on Consignment*Jand upon sale this account is credited and charge made to "Freight on Leaded Zinc Oxide," .Metal content of all\Ules;iis determined by actual laboratory assay. However, all contained metal is not paid-:foryT^ -v^>l^*^-the':JuIy : 1948 sales of deleaded tine fume to the International Minerals and Metals,Corporation-ccctained'.S?,?^ pounds , ' lead not paid for. This lead is a "sales loss." Couplets record of such salestlosses are kept-by^the Metal lurgical Accounting Department. ' v'.`: - '/5 ` (3) Inventory Valuatione. There are no treatment inventories carried at the Slag Treatment Plant.. Cold slag is removed from the dusp upon which no value is carried on the Western books^iCoo**qushtly'all. slag de- ' livered from the duap is adjusted by any known ear or bln inventories to :arrive \at Ionly:.tihe quantity'treated,' sod none remains as plant inventory. As the tonnage of-molten slag is arriTed:at^^Tcalqulstion;noi^inyestories are carried. The method of accounting in use segregates tbs remaining inventorlss:liito'!,two^elasses]^by^prodiicts' and finished materials. The by-products consist of various flue, chamber and^,1J-tubetizrreatories|and';tbe finished.:V materials consist of products In bins or cars ready for sale or in transitfto Wsumers.^Mo^cost/of purchase (slag cost) is carried against the by-product inventories. However,-fuming plant*cost|;is; assessed to by-products on basis of cost per ton produced. The finished materials, consisting .of.leaded sinc;oxide sad deleaded tine, fume are not based on cost. Tbs orthodox method would be to value tbesevprodacts at:eost, or markst ^dchever is the lower. Since these smterisls are really by-products of lead ores,.'no accurate'cost basis..is, available. ' The lead ores were purchased for their lead content and unless arbitrary!*!locstiqnsj&lsad eosts^wtie:made, 'no known ccet of the slag treating plant products becomes available. . R*sorttba#^(,thereforel!beecii'mads:.to wsrket oosh. Since a good market for deleaded zinc fra* exists the inventories ofthat'product^aretfvwlaed: at-market-price. The inventory of July 31, 1948 was valued on basis of contract with the lid-ernst'ioxialTMinerals and Metal* : Corporation. Loaded zinc oxide has not the same ready markst as thr daleaded sinc^foM. Therefor* prudence required a more conservative method of pricing, since the price on swell .sales to paint'* companies;wight not be a criterion for establishing Inventory values. Sine* the major portion of this material is;returned,to-.the Lead Plant under schedule, the inventory is priced according to term0* o<uf tuhakt secchneeduuiule*. - i\-* ,-v-. - , RSCFIFTS - SLAG TREATIES PLANT Cold Duct Slag - Reclaimed After construction of the Slag Treating Plant a certain percentage of-cbld.;*lag could be-treated in addition to the molten slag from the Blast Furnace Plant. The slag;is, loaded- at|th*.: duap' n'full railroad cars and weighed on track scales. The weights are recorded by toeMstallnrgi^.al^lcjpuntij^rDepartment ^Sca ever, the plant is assessed for only the actual tonnage treated. It'ii''therefqre?neceaaaryfto-prepare a statement showing the actual weight treated by adjusting the quantitj\loaded^t7th*>pils^ly:|iirTeotories at first and last of month in storage bins. The tdss are measur*d-at,;tbwrfixst^of;eachioath#i.TheR*- search Department has established a weight of slag per cubio foot.:~-ProKt^l#st^^ng^the*'total^cublo feet in each bin at varying empty depths the tonnage of inventory is 'determiTved^To' theijnrentory -" ' monthly, assays are applied to arrive at metal content. The same- asaay#';*r*q^pli*4,to..the .tonnage, of slag loaded to arrive at its metal content. Having thus d#tenained the;w0tal`jc<^ot' cir`bothlth# slag ; loaded and the inventory, the quantity treated is thus determinleedd,. vs For transfer'ee**t'"\q"t"hi*s *ma` ter.ia.l.'' refer to discussion on "Receipts - Hot Slag." " PNYC 00012267 ' .*, V .;? ''k?y-; ^.-y- . aiyU-; SLAG TREATING PLANT ....... ------------------- RSCHPTS - SLAG TRJIATCIG FUHT (Continued) la addition to receipt of cold duap slag, hot or eoltea alag.is.r*ctived^frcm\the,J>latt.iXurnac#. '-Thi#:C; aelten slag is from two sources, (1) from treatment of current material.aad(2)^ro treatment of cold slag'.'''*-- from dump, introduced into blast furnace for melting prior to treatment at'Slagt-Treating!,Plant*.'.Beta of . molten slag were at one tin weighed, but this has been discontinued# . it present .the quantity' of slag is determined by deduction* Iron and manganese content it used as a basis for/this-, deduction. i;Fron.the known iron and manganese content of material treated is deducted the iron ancLaanganese. content of..'materials pro*- duced, the difference being assumed as iron and manganese content of tlag.V By>*eans of. iron rand manganese assays determined on a monthly sacple, the dry tons of slog produced is. arrivedlat* ' r".v.. . ' -ViSTSSk'' ill molten slag is sold by the Lead Plant to the Slag Treating Plant* ,i'iideXinite.*fchedule isToutlined- \ by the Management for calculating this cost. Among other provisions the lead Plant receives ^a'$5 credit per ton of cold slag melted. The schedule is calculated in such a manner as to'allow each plant -a;fair profit* SSSFMENTS - SLAG TRSATIJG PUNT ' '' w Deleadod Zinc Fume to International Minerals and Metals Corporation. Bartlesville. Oklahoma reloaded zinc fume is one of the products of the deleading kiln* It is sold under contract to the International Minerals and Metals Corporation* The contract is for three years beginning February 15, - 1947. The contract contains two schedules, one applicable when .the price, of sine is 82S{. per pound or less, and one applicable vhen the price is over 3*254 per pound (Schedule XI.). Under the latter schedule 95$ of the zinc content is paid for at 100$ of the East St. Louis quotation*- The base treatment charge is $39.00 per dry ton when the zinc price is 10*54 per pound* For each 14 incr*aee"in the sino price over 10.54 per pound there is added $3.00 per ton to the base price* For each'14 decrease in the price of zinc below IO.54 there is deducted #4*00 per ton from the base price. Contract was written when the base labor rate was $9*672 per day* For each 104 increase or decrease in that rate there .is added to, or deducted from the base charge 234 par ton* Splitting limit on zinc is .4$ with provisions for repeating .assays and call* ing for unpira. ' r^ ' ,''.JS'r' .1'*.'.::' `v . Fux> is sold F.0.B.f Barble3villa, Oiclahom*. Aftar a says ara axnhangad, rooyarad: and r*peats and tua- pires called for, if neoessary, the International Minerals and Mftals-.Corpprationpr,epare.s thejrsettlaots .f and forwards them, together with paid freight bills to the Salt .Lake^Qffic'e^fJHlie International Smelting and Refining Coupany where entry is made recording revenue from,sale*^Coablned?ocL(.tbe "same`"certificate with Bartlesville assays are their weights and moisture percentages.'r.The.'^alt^Iaka/Office ferward#;theee:re- .. ' ports, together with the freight bills and settlements to the Tooele'Qffice^wheroVa'metallurgical.''stateaest. Is prepared showing a tabulation of the weights, assays, metal. content, charges^|nd;redits* i'-The' weight and metal content are then adjusted by dele&ded fume Inventories to arriveiat'production as.used:on plant ' metallurgical statement. ... . ' 'r-'l Both zinc and lead are assayed by each company, although lead is"it!a|set1^wItVf4ctor*VTb facilitate ' early preparation of metallurgical statements all inventory aasaye are (det'tmXoed.-fpoa;greb.eimples,-'- In - ' computing metal production, however, eettlemant assay' on tziinnc* is used.!* Plant aseaye on lead/rcopper and"-`?- silver s>vero for calculation of production of those metals. -.;H .v<V . Bookkeeping entry on sale is made at the Salt Lake OffiLceee, the'Xnternational'Mlneratls'aiid.Metale Corp., being charged and credit made to "Zinc Fume Sales ~ ' ` Leaded Zinc Oxide Sales Leaded zinc oxide is that high lead content material recovered . after. the^*inc,.oxide'has ben discharged from the deleading kiln* The leaded zinc oxide is either returnedto .the^eintering^plant-ifor'furtber re* covery of its lead content or sold to customers for use ln~manutotar*Tof painta*^:.Sales ofvleaded zinc oxide are made direct to customers or shipped on consignment to-agents who.report^monthly on,.sale# and in* Tflntoriea, Sales orders are received at the Salt Lake Office fTcm-tbe Intematlgnal'StteItlng;aad Refining . Cocpany, Pigment Department, Bast Chicago, Indiana, or from the BewlToric,.Ott$ce!^rioeS|are|quoted by the. '.'. . Eastern offices and agents are allowed a commission of 4 per po^udl^DaringfJul^^LStiSlone^ealt^wae made . direct by Carl F. Miller and Company, Seattle, Washington, and corflgneyVVsalaa^ei^mafo;by^C.,l Duncan Company, San Francisco, California, and Xraft Chamical Coapany,jChiM^o^ Shipments to consignment stocks are made in 100 pound bags* The`eeterial^usually aesaya^between 50$ and 53$ lead and from 16$ to 18$ zirc , although the ealee price-is npt;c*lfulated.-uponactual.aseay* For incorporation into metallurgical records actual assays or assays .M^nearly^ypreuntative as possible are used in determining inventories and sales# ., .. /* \V- ' '* . SLAG TREATING PLANT 5HIPV5MT5 - SLAG IRSATItt} PI^NT (Continued) Louded Zinc Oxlda Sales (Continued) m0:., {W i .- > ; J. V ' The Salt Lake Office receives the shipping order* and record* the entries'fbr^freightjcomisaions/(r> ,vand sales, The information is then fomarded to the Tooele Office where a statement ia.prepared'giying. . full detail of weights and mstal content, gross revenue, freight, cosedsalon* Information on consignmant sales is aomstiaes received too late .to incorporata^latoi4mouats|tforl.tbe.'-. month In which sales were actually made. For exumple the June 1948 ale by>CL^LtXlXmcaz^Caapany,iMy^ j**. .. ported and remittance received on July L3, 1918 after metallurgical 'data* had' been.'j>repared*$?ilbe;fsale *as therefore recorded in July 1943 account. Also, the consignment sales are recorded-'directly -through the cash book upon receipt of cash, such caah payments being received too late, tolcredit; to. consignment sales7;, ' for the month in which the sale was actually made, . j... Deleaded Zinc Fume Returned to Amorlcan Zinc Company of Illinois . ^% ; As noted under comments concerning receipt of residue from the American^Zinc\Coapmxy.'of-*Illinois, BOj of the zinc content is returnable In the form of deloaded zinc fume at International, Utah* ."-'- * The fume is weighed and grab sanpled at the Tooele smelter and assay determinations are made on the samples so obtained. Assays are obtained on zinc, lead, oopper, silver and miscellaneous metals. Due to. delays in shipment and settlement sampling and assaying, the assays as first obtained at Tooele are used in compiling data on metals shipped, ithen final weights and assays are. available,. adjurtmmits are made'-' to preliminary data. ' %*',dv-V: Upon receipt at destination (kachovec, Texas, during July .1943)``the-American Zinc ^Company.of Illinois obtains gross, tare and net weitfits *Jid percent moisture. From the moisture sample percent`sine is also determined. After sample has been submitted to the International Smelting and Refining Company a comparison cf zinc assays is made, uapires called for, if necessary ted the contained line ^determined*.] Vj . No provision was made in the original contract as to wboss weights; ifaoul4-goveniraniias 'to.ths aplitHrig limit to be used on sino. Reference to files in the Salt Lake Offiee.'ldisclosed^that agreemeat'.'vas'later . effected covering these subjects. Letter of Ur* R. A. Toung,: Vice ^Presidentlo^ihe^ABericaa'iZinc Company. X. ' of Illinois to Hr. 0. A. Burt, Ore Buyer for International Smelting^an4*RefiaingiCospanytistated\*Confixidng our conversation today, the contract between our companies'for retura^of^zincffumevfrom the lfansaoto reeLdoa . currently being shipped you did not provide at ifcich end the material^is .to^be.'meighed*'. As.per.oar agree* . mant, we will use for settlement purposes weights and moistures on-fume a*;dstersined .atiour Duma* Plant.upon arrival and will send a pulp of sasple to Hr. C. Bardwell at your Tooele.plantV^iAa soon.as your,essays ere completed, please notify us of date you will expset to mail your essay, end we mill mailours.so as to crow in the mails. If splitting limits provided for in the cootract,are.,exceeded,.wei|;shall-.thsa.'resort'to u*- ' pipe procedure as set forth in the original contract.?- The.origlrul^oonViftftt proyidesl.for^a^splitting L. limit of.*5$ on zinc which is used in conformance with the letter.-aboy^TMtedv|tj\S>l: v...... IKVENTOHIBS - SLAG TH3ATIKQ FUOT " i 4 'j Finished Product - Delsaded Zinc Fufflb ' ' ; ' :1 5 > V. Inventory of deleaded sine fume at July 31, 1948, consisted.of (l)>inH'ru3*it^to International Hinersls and Metals Corporation, (2) on hand at plant and (3) on hand at plant.^lmi^^Lapgl^ to^imerlcan Zinc. Coapery under contract epecifying return of zinc in form of deleaded fame. i?* . \ Bills of lading are prepared showing ears shipped to lntezutiooai HiMrails^and'Het^La^Coi'porsction*. SusL ,v company, upon receipt of fume, prepares settlements on cars recslved'-during'i^'efiionth*,( Aay'cars^for which ` bills of lading have been issued which are not included in receipts/at Bagtlssville/acoordipgsto eettle cent statements, are considered to be In transit. The dry weightof^th*Jini^ntorx is .determlned ty^appll- ' cation of moisture percentages reported by the Sampling Department*,;*-Grab;sapls^ofrt.-car*r*hipped'pro^dds . 1 the basis for determining assays used for calculating metal contjntV^Coate^foi^wchVer^is/calculstad' . and tabulation mads of all cars. . ' ;*'s Deleaded fume on hand at plant usually consists of that in partially:;loadd;oar* or.In bins*. Tbs Operating Department estimates the tonnages in this category. ; Inolud*dtinltlMj;Jaly?J31,3l848. inventory warn ' 2 tons in "put and take" bin. This bin .is used as a rcepttae,f6r..storiag^uantitl*m^ijeoTedvfromJ,crv- loaded cars. At July 31, 1948 the major portion of the invantoi7-tconftiste^^>UT^i,l^lesniagB.XTO .: the kiln. Monthly moisture percentage and assays obtained frt;4d ^ culating the dry wei^it and metal content of the inventory* -i;;y. .....'!&*}*"} INVWnp3IF3 - sur, THSATItC PLANT SLft3 THSATDO PLAMT (Continued) VS?i4(,; Pinlshsd Product - Pelcadci Zinc Pure* (Continued) Contract with American Zinc Conpany specifies that "Zinc will be returned;currently as.the sine resi due is purchased and treated," Due to this provision it is neceesaiy to calculate vths. aiao.content of . ' residue treated by adjusting receipts by inventories at first and last of month,'.all.calculated.at:80|, rate at which sine is returnable. To the quantity due the American Zinc Company as thua arrived at ia added the amount due at tho beginning of the month, from which total is deducted-the quantity actually delivered in fume during the month to arrive at the Inventory of zinc In fume on hand, but belonging to the American Zinc Company, The amount due, although recorded as to weight and metal content, is not valued. Its content is deducted from some plant inventory, the balance of which is valutd* Finished Product - leaded Zinc Oxide Inventories of leaded zinc oxide consist of (1) quantities consigned to paint companies and 12) quantities on hand at plant. * Conmiosicas are granted to consignees for sale of the leaded zinc oxide. Each month the consignee usually transits a letter showing the amount sold and the inventory remaining, along with remittances of cash doe. The unsold cate rial is tabulated on metallurgical reports, metal content being calculated on the basis of laboratory assays. Quantities on hand at plant consist of oxide in storage In pits and in full or partially loaded cars. Tho storage inventor/ consists of 100 pound bags. At July 31, 1948, there were 330 bags on hand. The in ventory in cars is determined by actual scale weight, if full, or by visual observation if partially full. The inventory in pits consists of oxide underneath the bags. The pits are,usually cleaned each day. They ere open to observation and the tonnage is therefore estimated visually hr the superintendent or truck driver. _. By-Prod ucte . .. ' The by-products are classified into three divisions, (1) furnace fume, (2) lead flue cleanings and (3) furnace flue cleanings. . ` . Furnace fume consists of that in (a) balloon flue, (b) U-tubes, (c) header,flue, ,(d) bag hohse pita ^ and le) storage. All of this primary zinc fume is exceedingly light,* and bullqr|in'character,which neces-* eitateo the handling of a very large volume each 24 hours to keep, up witb':production.'>S Weights per cubic r foot of dust in places are as loHows: U-tube cooling section S3 pounds; Vbag bouse'header, flue - 20& ` pound** bag house pits - 1$ pounds. The balloon flue is thoroughly cleaned;once every 8 months or year. Cnee a day, or every other day, the flue is tapped for removal of current, material. The track driver estimates the inventory, uhlch at July 31, 1948, was 50 tons*. The U-tubes discharge into hoppers from - which the dust is removed. Some dust renains on the side walls and around tbs hoppers. - This inventory at July 31, 1948, was estimated at 35 tons. Ths header flue is cleansd about every 12. days and removals made through a pit underneath. A fairly accurate estimate of tbs toniugt.reominlAg:is possible. At July 31, 1948, only 20 tons were carried as inventory. Ths bag house pits .aredIreotly below'.the`bags which oollect ths fume. There are two parallel baghouses, each having 294. woolaa jbag* 13 inches'in'diameter and 30 feet long. Each baghouee is divided into 7 pits of 42 bags. AH.of: ths fourteen pits are'used for the sine fuae from the slag blowing furnace and a separate baghouee is used, for lead fume from the IdIn. The bags are shaken with mechanical shakers which raise and then drop the bag l inches each revolution. The pita are about 7 foet deep. The depth of dust is estimated by visual observation.' Each foot of depth contains 2 tons dust. Thus 14 pits containing dust averaging 1 ft., in depth wold have an inventory of 28 tons. At July 31, 1948, ths inventory was carried at 30 tons, indicating .that'the. pits were kept well cleaned. A vacuum system is used for cleaning. Storage inventory,at July^3l7->1?,48,. consisted of. 73.8 . - tons.. This inventory is determined by count of 50 pound bags of which the?JjavaQtoryTconsist'e.'UThs metal content of the above described inventories is determined on the basis of fixed assays.; -The material is consistent in grade end is the fuae highest in zinc content. ^ . '? . ' The lead flue cleanings inventor/ consists of fume in (a) brick;chamber, (b) balloon flue, (c) U-tubes and (d) header flue. These Inventories are known as secondary flue system inventories. Tbs brick combastioo chamber is 40 feet long followed by 122 feet of balloon flue, which `Connects to-a.U-tube cooling section 20 feet long and made up of 4 U-tubes. The inventory is the brick;chashcr. may ;be observed and is estimated visually. As a sloping bottom Is necessary some Inventory is always leftxto. facilitate passage of current material over top. The chamber is cleaned daily. At July 31, 1948 the inventory consisted'of SO tens. The balloon flue and U-tubea inventories are determined in similar, manner to that^deseribed above for the pri mary flue system. Ho inventory was carried at July 31, 1943, in the header flue.- It ia cleenad every three months and estimation of inventory is on basis of time accumulations have been vfl&de since last cleaning date. Metal content of lead flue cleanings are determined by fixed assays. . - ' PNYC 00012270 | ; - -STAC TREATING PLANT Th-1 third inventor/ <*l".sri.fioat!on, fumucw flu cleanings, are primary flue system inventories and consist of (a) brick chamber dust, (b) steel chamber dust and (c) furnace dust,.; The.furnace downtake connects '.-itta a brick combustion chamber that ia 80 feet long* It is equippedjith..eater sprays 'wfaioh , can be used to ccol the gases when necessary* A series of hinged doors...oaiea^*ide'permit ...ths-dust .to be scraped out with long-handled hoes. It is cleaned about every 2 weeks and'inventory .is estimated, on the * basis of prior removals* A steel moisture' chamber fallows the brick. chaaberi'aad.is.48..f.eetJ:long*'. It ia .-. hopper bottonad and clenned daily or on alternate days* Occasionally, the'hoppers are; .viewed to'deternine ' inventory remaining. In addition to the chanter dust sone dust accumulates. around the alsg furnace, is leaded into r:-llroad cars and stored in bins. Visual estimate is made of that in. cars and bin.inventories art determined by measurement of bin end weight per cubic foot* Fixed assays are used for determination of metal content of chamber inventories, although monthly samples and assays are taken on furnace, clean ings to determine metal content, ji.L* ... . .* Considerable difference is noted between the Bast Helena and Tooele methods of arriving!at'tnventory* At Bast Helena the Superintendent calculates daily production from known metallurgical data, and accuoulates production for the month. From the calculated production deduction is'made of weight of cars shipped to Great Falls, adjusted by inventories, to arrive at inventory remaining in system* The inventory as so determined was consistent with tonnugeo removed during shut down periods, thus Indicating a good degree of accuracy in inventory calculation. The method is much in contrast with that described above for the Tooele Plant. Hie difference in method illustrates the difficulties encountered in determining accurate metal lurgical inventories. Both methods would seem to be reasonable and superintendents of both'plants Indicate that tonnages are consistent and compare favorably with inventory removals during shut down periods* PNVC 00012271 SULPtSDB CONCENTRATOR ' i,counting F?murr. Fcn,sumirog ccnc^ratoh ' ;< Similar to procedure on Lead and Slag Treatment Plants all accounting data.ia_keptwto arrlYe;at,.profIt..\as nearly as possible* Except for depreciation expense all costs are available. for.:deterniJlAtlx>a:loftprofita..*? Revenues, honover, are dependent upon schedules as provided by the management, :trsa*fere.of{ileed'4ad iron oonr centrato3 being made to the lead plant cn that basis. The description below briefly detsils'featurwaion. U)\ ' receipt and cost of materials, (2) shipments and Bales of products and (3) inventories and their valuation* (1) Rccirt &nd Cost of Material* ' ' '' ***] ' ' Materials for treatmont consisted during July 1943 entirely of crude lead-tine ores* ...Of, ten ship-, cents received nine contained a greater average percentage of lead than tine* '.The purchases are made under contract provisions or open schedule by the Ore Purchasing Department.of the.Salt Lake Office, end payments are made by that office directly to the shippers* Cost of ore is ettered on the general books and is kept separate and distinct from cost of ore purchased, for the lead plant* So materials were received during July 1540 from the Lead Plait* ' ' .. ' (2) Shipment? end Sales of Products There ore three customary products sold or transferred* They are (a) lead concentrates, (b) . nine concentrates and (c) iron concentrates* The lead concentrates are all transferred to the lead plant under schedule provided by the management. Total production is transferred, that is, any in ventories remaining at the end of a month are purchased by the Lead Plant aztf are included as a part cf its inventories* Bookkeeping entry is made by the Salt Lake Office crediting the Sulphide .Con- . centrator and charging the Lead Plant with the value of the transfer* Zinc.concentrates are all .. disposed of to the Montana zinc plants of the Anaconda Copper Mining Cocpany, Tbs Salt.Lake Office propares the entiy charging the International Smelting Company, Hew lork .Office, and crediting Zinc Concentrates Sold to Anaconda or Great Falls* Sale of iron concentrates to ths LeadPlant is.mads in manner identical to that above described for lead concentrates* ' ./ : . ... {3} Inventory Valuation* (a) Or* at Stock Pile Ore at stock pile is carried at cost with theexceptionof the .silver and gold content which' are valued at 34.75$ and $34.00 per ounce respectively, as per'instructicos..**As ..noted'under consents on "Inventories - Ore in Stock Pile* the additions', are aad*<to?ths pile in full`lots and calculations on value of ore by lots is made from data on ore-settlements*' '-Removals from the pile era made at the average of the *to account for* quantities, botfa a*.to. metal.content, metals paid for, value of metals and treatment charges. Small piles'are usually carried and are cleaned up frequently. Usually a pile is cleaned up entirely, as the plant is operated in campaigns when a sufficient supply of ore has been accumulated* Partial removal of.piles is an exception to usual practice. Ho last-in, first-out method of inventory.valustioa-i*vrapglied<'asinventories .are fre quently cleanod up and total cost is carried against'pn>eUicUon^^^^pJ^^^-{*^;'* . Ore in Bins . i --- j't*- - *' "I . ---- * `.-.h" ** Record is kept as nearly as possible of bin inventories by.lota.''-.',Under the method used in opnrstlng the concentrator; i*e*, in canpaigna, the content of the.bine is generally ascertainable by lots. Complete cleanups are oade during periods of operation/*nd.'aecunulittions begin' for the next operation. By reference to dump reports the lot numbers. ofvore;etored-i4i^obtained*';;Tabulation of the inventory is then made by lots and ths- d'T weight,Vmetal''ccntnt^.'ntalie'paid for, * revenues and treatment charges are calculated from aettlammts.^^e^kLlvor'.and.'rgald^however, are changed to 34.75$ and $34.00 per ounce respectively,:; i`s- w"ith* . tock':rpileT*ores*i.no -leit-in, first-out method of valuing the other metals is used*. , " <c> Concentrates on Hand and in Transit ; Concentrates on hand are finished product and are therefore ,pot. .worked back. to . an original equivalent. Ths inventories are therefore prioed at market^.valueivtichlat July 31V>1943, was ths price obtainable under contract with the Anaconda Copper.lflnlng^Cpcpany.V-All revenues, -treatment charges and freight on concentrates on hand `July ,31'i^l943^jeer* calcule-tedion^the basis of that contract. 'v* ^***** } '- >4`r-'.1*j. - .'j PNYC 00012272 iili SUlFiflES CCHCBNTRATCR . 1 3?'..,. , ' : -.so...; RBCEIPTS - SUlfHIDS CONCENTRATOR Contract Pi-o rir.ions - General *0%W w$ ' :*.*' Concentrating or3 ar< purchased under specific terms as provided by contract or open- schedule Of th? l*rgc r.'-r:!btra of ores received during July 1948 tin wars aydited in detail,, those of the Park Utah Consolidate Mln^c Cospany a.v* Irasers of the National Tumel and Nines .Coapany* Typical of contracts fer milling ores i? timt with the former company. For informative purposes the terms are hersdth summarized: j'viJ.' --I '', ; Payment fer Metals* ' : r >' ^ ' V Gt^d Pay for 70& up to and including .05 ounces per ton at $32,816 per ounce. Pay for 60, if over .05 zs., at $32,816. Minimum deduction is .01 z., psr tor.. Silver Copper When 13 ounces or under, pay for 83jt at Mint Price. Whan over IS oza*, pay for 90,'i of the excess over 15 ounces at- Mlntv Price, m m ma de duction .5 ozs. .. .. Fay for 70$ at New York electrolytic price lass*6.32901. Minima de duction 15 pounds per ton* * . Lead Fay for 63,1 less 2.4?0< per pound. Minimum deduction 20 pounds per ton. . ?.izio Pay for 65j$ lesc 2.9105 when zinc is 5 per pound or less. To this deduction of 2.9105$ add ,4$ per pound for each 1$ increase in price of zinc over 5{. Minimum deduction 60 pounds per ton. Monthly average on minimum deduction if beneficial to shipper (par A. B. Young a/ifi/43), '. Charge $1.24 per dry ton when sampled by.the Utah.Ora Sampling Company. If not aanplod by the Utah Ore Sampling Cospany, charge 25$ par. dry t0n- ' .. A-:M^ Bullion Freight - Metal prico deductions based on eoppar and lead bullion rate of $19.03 and $12.76 for zinc. the shipper. Any increases or dacrea>*sas^.ara for account of Split M.-y Limit*; Gold Silver lead Coppor Zinc 02 oz. 5 oz. .& ` .3* Or*?-** -from Park Utah Consolidated Vines Cotnpany '' ' [^V. " ;. Ore from Park Utah Consolidated Mines Company is from two locations, Parit City, Utah, and Eaetlsy, Utah. This ore is sampled by the public sampler, the Utah Ore Stapling Conpany. According to'tha con tract the International Company allows a credit of 25{ per dry ton to the Park:Utah Comparer fear sampling concentrating ores, the latter company bearing the full cost of sampling byiths,Utah Ore Sampling Company. The full cost is paid by the International Company which deducts the amount-* from^the proceeds of.:ore due ' the Park Utah Coop any. ` * ^ \ - ' The Ut8h0re Sampling Company weighs each car gross and tare,Tand obtAiaa.;tha-percent moisture. The weights and moisture percentage are accepted by the International Coj^>ary.'%Eowever, tha ora la weighed hea>y and light upon its receipt at the Tooele Plant, a check than by. beingobtaind on tbeweight. Tbs Salt lake Office reports the weight and moisture percentage to the Tooele Office for uas In tabulating tha re ceipts, Settlement assays are arrived at in the usual procedure by averaging sellers and buyers assays with use of umpire assays when splitting limits have been exsceeded., r '-:j7 s.-isw-.* .; ;w h mgMm & PIMYC 00012273. . ' tsu Ute1- i!i SULPHIDE CONCENTRATOR RECEIPTS - suing PS CCNCSNTRATCR (Continued) Cng from Park Utah Consolidated Mines Cocoarxy (Continued) ;>rv;;Sv.......-! C4h! . IV.*' ; . : J Park Utah ore is usually purchased for the Sulphide Concentrator*' However,^thsre.ara occasional lota ' . , . sufficiently high in lead content to be used in the lead smelter*- Two,.acheduleeiareijL\.effect^for^the.pur-" chase of Fark Utah ores, one for concentrator ore and one for anelter,ore',i',,Eventtho'ught'iJi^or*;ay?not^be,-Ti^-u'*'.!* of the proptr Analysis for treatment in the smelter, it may be eettled for^oa ths;'.lsad?smeiter: schedule/ , ^ - if by thst. rrhcdulc the settlement is advantageous to the shipper* 1 Of seven-lots receivedifrom Park City . . during July throe were purchased under terms of the lead-ainc schedule .and;four under^theleadi amelt- . in^ rched-jl" ?\though all aevnn lets were actually treated at the concentrator*^... } .. ,, During July 1248 concentrator ore was received from nine shippers. Of the. nijae. only- tvo,'8eat^theIr cro to tho Utah Ors Sampling Coqpany, the Park Utah Consolidated kins# Coi^>y_and tbs'rBay'iXfHiaing-Coc^ar^lr^ V' at Jericho, Utah. .V v;5 -'VV Central th Park Utah Cci^nj- contains a provision for use of a monthly Ir.irmim deduction cal- cul/'M.cn o.m -Auc, The contract provides paymont for 65# of ths sine content at_a specified prioe with a minimum deduction of 60 pounds pr ton (3# assay). If 35# of line content (notpaid for) is lees than the poundage .not paid for on a 3# deduction from assay, then the greater amount, or# of dry weight, is not paid for, Likrtfins if th9 35# of sine content exceeds the 3# of dry weight not'paid for, than the higher pounds zinc At 35# is not paid for. According to the contract each lot is settled for*separately and the minimum deduction applied to each lot. On April 16, 1943, Ur. A. B. Toung conceded that a *4mu deduction be calculi si, bc.nod on a monthly avnr-'.ge sine assay. If the monthly calculation results in a lesser nnober of pourKls not pnid for than the ?u.n of the pounds not paid for by lots, then the Park Utah Conpany would be r-Vi:vj>r`jod for the additional pounds zinc. However, if the calculation resulted in an additional poundage of ?!nc not pai.d for no penalty would be asserssd against the Park Utah Conpany, Stated otherwise, the monthly calc Antion is used only if beneficial to that conpany* ... . / Ore from the National Tunnel and kineo Conpany .H Ore from the National Tunnel and Hines Conpany is from a lessee of that conpany (Frank.De Bench), Re ceipt of or? end accounting procedure is identical to that described .under JReoeipts -ilead PlmV.- Ore from Combi'iod Metals Reduction Conpany." . . : -.'-.v V- The ore Is purchased under open schedule terms. One settlement provision varies'somewhat with others as audited for July 1948. Certain of the ores in the National Tunnel property areoxidised. ' Aj .such oxide ores are not amenable to the concentrating process, the oxides of lead md;jinc are assayed and such assays deducted from the total assay of each metal before payment is made*' : !*.* The National Tunnel and Mines Coapany is in the process of bankruptcy^and'no^ores'ar.s being mined other than that of losswes. . .- : .H&rrN3i* " * " ' ?' >!IIFigNr> - 5ULPUID? COtfDENTRATCR - , ... - Zinr Concentrates Shipped to Anaconda Cogper Mining Conpany, Anaconda. Montans fi* *' .: ` -d'-r - . Zinc concentrates are shipped to either or both of the electrolytic* tine-pLuat* of ths Anaconda'Copper 'iining Company in Montana, one being at Anaconda and ths other at Graat Palls. Present settlements are based on letter agreement dated January 1, 1943* Whether or not concentrates are'shipped to'-Anaconda or Great >'- Palls, the International Conpany is obligated to pay freight to Great Falle^Black Eagle). Agreement " specifies percentages of metals paid for, prices to be used and base.treatment ^charges, with adjustments ' thereto. One unusual feature of this agreement is that ths sino-priee to .be iosed is not that quoted.by the Engineering and Mining Journal, but the price received by ths Anaconda Coppsz^kiaLng.Cosg>ary/r*ob, its Montana Plants, for sine sold and delivered by Anaconda during the month:ofi:racsipt,.of*'thei concentrate, less .304 per pound, plus freight on zinc from Montana sine plant to St* Touls/llfi.ssouri. k\The'original agree ment did not spocify any increase or decrease in base treatment charge dae-i.oJiincreasesjpr.dscreaaes in ' labor rate. ` In letter of Mr. R. B. Dwyer, November 5, 1947, provisions were made`for .such.changes in treat ment charge. Any increase or decrease above or below $10.50 par daylabor,iis'ito.be;compensated by addition, or subtraction as the case may bs, of 1.24 per dry ton to the base .treatment ^charge'for each If per day in crease or decrease in cost of ,labor above or below said $10.50 per.'day* i;Anaconda, weights are used in making settlement and date of weighing *t Anaconda is official date received*'^TO^jreoorftfthe transaction ths Salt Lake Office charges the International Smelting and Refining Coqpany,: Bewllork/fcand^credits .fZinc*Concentrates Sold to Anaconda." . ' ' ! . \\ !);&' '' ' PNYC 00012274 .-.1 V ` ;v. ' ' ' < 1 SULPHKE CONtjaiTRATPR . SHiry?-TTT5 - STJLPHJ.3* CQNCEjVTRATCR (Continued) Lead Concentrates and Iron Concentrates to Lead Plant Sulphide Concentrate)' did not operate during July 19-48 and no.transfers-ofvleact:oEllift|nTco ^ were made to lead plant-, ifhen plant is operating, transfer of these- products ils. madatd%lead;plaat on - /*: ; basis of schedule provided by the management. Zinc concentrates, discussedvtboVe^'vero'^A^raneit-^at^June l- 30, 1948, nnd received in Montana during July 1948 in which month revenue-troot sale waa-taken/into.account* Zinc Concentrates Lost in Transit btnen International, Utah, end Anaconda/ Montana The Traffic Department at the Anaconda Reduction Works compares.its weights of sine concentrates with those of International to arrive at a basis for establishing freight.claims*.Tbe'Traffic Department at . Butte, Montana, is advised of losses and from information supplied-Jy the.;Ac counting Department files claims with the railroad. During July 1913 one such claim was collected*?. 'Prior^to'.coHactioa.oI'such claims the Metallurgical Accounting Department makes no adjustment for these losses oa!statsments of treatment and pro duction. Some variation ainaya exists between shippers aed consignees weights-and are absorbed as loss or gain in preparation of statistics. However, when cash collection for loss is made,-the metal content of such lossen are recorded tc adjust plant recoveries, and revenue is entered'upon the books of account* During July 1348 a collection was made by the Butte Traffic Department,^'copy of the claim being forwarded to the Salt Lake Office, The following entry was made: . w ?l ' . ' . Dr, International Smelting and Refining Co*, Sew Tork Office ' Cr. Zinc Concentrates Lost in Transit to Anaconda .. . The credit is in reality a sals. INVgmRISS - S'JLPHIDF. C0MCEHTr.ATCR Or in Stock m* Bach day a "Doily Car Report" is prepared by the operating'Department showing car number* of ore dumped at stock piles. These car numbers are then checked to report-"Reoord of)UJlln&..Qre.1 Received* which gives the gross, tare and net weights of the car and its lot number*: Raving ,thu^iecured:.th lot'mimber, the car . cay be identified on the Abstract of Cre Received which gives allodetail?as*^jdJgd**z^ festal-content.-' Thr lots which have been stored are then posted to e sumsary or.-dispositionuetatemsnt where totala--,are kept by {' shippers and by piles to nhlch ore has been stored* The various storagcsfarc'thsn posted .to a .^Record of . Stock Pile Ore" which contains a sumsary of the inventories, rewipts -mid'removals of ;steck. pile ores* ; ' U-. .:*/` -f. ' ' - Practice in handling removals is different from that used on- lead plantjstock pils'orea where samples ware obtained and assays deter-ninod, Since most of the Concentrator Plant^bresiare^stored;!o_r*:-relatively short periods and the pilos are entirely cleaned up.durlng-periods'-of >^erct^op^no|asssys^pn removals have been made, 'When a pile is partially removed the dry weight ainnd>^mmetatalllo^onotn'CttitCit^rrr'e^''d*e<`d`^a^c~t*e*d'r*a*t; *thve' averageH&S?* carried in the inventory. - - OreinBins ;.V .. *:.v.- Two eolation methods of determining bin inventories are possible* of inventory by multiplicatiioonn of cu`b`ic f-eet f-u-l-l by wOen-ige hmt eptehco"^d c:ius* h; bicyif-mooetasou-fremmeanttero.iaf-l*b?in; sl--bsancod^thceiarrl method is to arrive at the inventory bbyy accurate scale weights on 5a^tWM]^ndj'ywmovala;*jfcAjmodification . of the latter method was used for July 31, 1948, inventory-in^Mu^.^&f^^^int$at6r^doesvabt.|cffrate^ . ", continuously. The Operating Department usually puts on its campalg^.dn^ng^the^ai'ddle:ofIthemonth at1 - which times whole pile or bin inventories are removed to treatment,v.Ttaas^udng^July;lH8^a, large^quantity ^ of ore was placed in ecqpty bins and plant did not operate durlng^.the onth^The invwntoraof; these'.bins - was therefore determined by reference to dump reports showing what'.lotslentered'^he'.bins^Tbf ^weights and- metal content of these lots was then obtained from settlements or abstracts^fl ore-rsceived* Totbe in-._ ventories as so obtained were added bin inventories still -remaining fg^^^^y^l,|.1948.^' ~ " Zinc Concentrates on Hand and in Transit . ^' At the first of each month the Superintendent of the Sulphide Concntrator^*uhita.ia^.etter'detailing various ores on hand in bins and at plant. The clerk preparingaetallurgi5ai|ftatemaats^cos^pares the.lots reported on hand in bins with his own record obtained from duap'reports*'i;-r4oir^P^l,r-?^,5T*0^1^*** including concentrate in Tooele Valley Railroad cars are reported by the Superintended* j1 If no'sample is taken'ths best available moisture and assa"ys are used to obtain the dry-.weight andIWtal-'oontent . *** The inventory of cars in transit is determined from bills'*pf Jlading-aaiwlettara recaived from the con signees, the Montana zinc plants* B- ach mon.t.h....t.h...e....M...o..n. tana;; pl`ant-s^"' s,apdjJ3^j%"l^'?e"sMfcjoi!!re^f^t-rbapannaaocAdbtt^tal-with pulp sample a stating the car numbers and weights of cars taken into theeilrr',months^recelpta*:K-'Aay;cars .sshh.ipped.^from Tooele and not received at the Montana plants are carried a--t i_n_veennttoorxyy--^in!;trsnsit5feb*:`esr-reJ'is-_tarp.led- -at;. Tooslei by lots (approximately 10 cars to a lot) and assaysi <are" o'b`talmd':ftoa^the^aaaples .tekan*`^Theee Assays pr-.,>v vide the n>eana for obtaining metal content of the iLnn transit r'\s '/ : :|ILTMyc 000,a7S l&aiii m m ';'.v3Pr ERRORS AND DISCREPANCIES SHIPUBNTS - COPPER PUNT Furnace Bottoms to the American Smelting aid Refining Company Letter agroeoent on sale of furnace bottoms provides] "Arsenic: 3 free; charge for excess at 25$ per unniit..' liaxiaum'erseS^penaltjr per ton* However, if the arsenic content is* "Sbe no penalty." Lot Ho* 15, settled for during July 1948 contained 15,703$ arsenic. After deducting tbe^-.SjC free,, the penalty would calculate to $3.18 (12.70 units @ 25$ each). This penalty was used on the settlement sub* oitted by the American Smelting and Refining Company in contradiction to,.tbs provision*above-stated calling for a maximum penalty of $3.GO per ton. Ur. G. A. Burt, Ore Buyer, stated'that&bejrvould .write to^the ; American Smelting and Refining Cocpany requesting an adjustment.' The' adJustskWjv^innfaTor of,the:Inter^.-vnational Smelting and Refining Company should be for $12.52 (13$. per 'ton;oQ}..6......5..5~ 6"5.';dry to' ns)` ,' ' ` SHIPMENTS - SUP TREATING PLANT Prelght Bills on Deleaded Fume to International Ulnerals and Metals Corporation . Freight bills on two cars of deleaded fUrae shipped to the International Minerals and Metals Corporation included errors in tabulating weights. Detail of weights appearing on freight bills and comparison with Tooele weights is as follows: . Use Bartlesville Diff erence Car No, Lot No. CIO 83437 1735 Car No, Lot No. FLS 2236 1736 Gross Tare Net Gross Tare Net 188,120 . 48,240 139,780* 106,260* V* . 30,440 146,240* v* 189,340 43,630 m.160 i vi;i 4 1,360 g%so If-.'`ip- j &_ ; Bartlesville net weight on car CIO 83437 should be 139,860.providing j typographical errors were made in recording gross and tare weights. Gross and tare weights a* wed oa-ciinX`236iaro-uaexplainable, al though the net weight as reported is very close to that reported by Tooel^^^|^Lyv ' : The Salt Lake Office was questioned concerning the above errors.?-Stateaeht;vas aadestbat- if'the net weights as reported by Bartleswille were cooparable with those.of vTooelepthex^pare accepted.*: However,) if\ apparent shortages occurredL3in su..b...s..t.a...n..t..ia.. l amoun` ts, i`nveetigation*-twere ma-de^of^suc.h s.ho.rtages,*'- ^J`~`l 3' A' ' ' RECEIPTS - SULPHIDE CONCENTRATOR Bass Bullion Rate for Determining Lead and Copper Payments on'Park Utah Consolidated Mines Conn any Contract Contract provides that any increases or decreases in the lead'and;copper, bullion rates-shall be for '' the account of the shipper. On April 20, 1935, the bullion rate wa*increaeed from\$12.50 :to :413,00 per . ` ton. The contract of October 31, 1935 specified the $13.00 bullioni^.JiHowevr,*:*lIfsettlements are ' . calculated using the old $12.50 rate as a base. Mo explanation.coulds^sfpiven. regardlng'':tha.-ue of the lower rate. Its use results in reduced payment to the abippte of pound Q{lead?or; copper.paid for*. Ur. G. A. Burt, Ore Buyer, expressed the -p"=>* 1 and :the ...3 long period of time over which the $12,50 rate was used, no, .adJastaejAs^Kjcorregtioastjbe.made and use of th. *12.50 rat. b, continued. - v , PNYC 00012276 `.V , *& 'i {H. VI '* WM'P i- n WTPItV:!-.-- G2NERAL REMARKS SHIPMENT OF MATSIIAL - COPPER PLANT Reverberatory Furnace Bottom to American Smelting and Refipiwg Company ' Latter agreement with the American Smelting and Refining Company does notprovide for' splitting Unit* h or umpire assays. Ur* Scanlon of the Ore Purchasing Office at Salt.Lake statedtthat>,the.-,prooadure^uaediinarriving at settlement assays was to obtain the American Snsltingiicd'BerinJ^JCc^aiijr^iss^sJJa^.tcoa^-'i' : parison of its assays with the Tooele assays and call for umpires'on thoseHaaa^yaVtoof:i) nV, i*T f~'h--- ' ujtpires were called for, the middle- assays were used) otherwise the aessye^of-'the-Agsirioan- PasltV^'and ~R fining Company were used. On lot 15, .................... - - - ............. .. .. . and duplicate assays. Detail of assay Copper Lead Silver Gold Insoluble Iron Zinc Arsenic Antimony Nickel Original 11,7 4.2 7.2 1.31 28.8 16.9 0.7 15,7 2.4 6.4 11.,7 4..2 7,.3 1.,30 29,,0 16,.9 U.75 3.5 ' 6.42 1.35 27.2 17.1 1.0 14.94 . 3.1 . 7.3 il? : Uj.?5 B.' Co. 'v - : - *1 s;5?Hi a. Co. U . - *.6S^ :' ?;25 v Iool : . ... 1.27. t. 1.27,- ?.v-Middle* (Umpire) , ^87.8 'r. I.S. A' B. Co. > ^ 17.1 1^. A B. Co. V _-;:7 5fei -1.0.-' v-aj; a R. Co. _ ,16.15 15.7 . Middle (Tooele) * ' 3.1 - -< A B. >Co. ''.8.2 ` 7.3. ' 'Middle U^. A B. Cc. The settlement assays are therefore arrived at by review of assays without definitely defined Units. The procedure would appear to be rather loose, but inasmuch as the. material'is .hard to, dispose of - due to its iopurities the lack of definite limits may be condoned as a concession necessary.to making.sale. Any changes in the above method are at the discretion of the management. ; ............... .......* R5CSIPT OF MATERIAL - L&AD PLANT Received Dates . {-, . yt v.,. 5 As noted under comments on receipt of ore and concentrates from Combined .Metals Reduction* Company, the factors determining the quantity taken into receipts are (1) availability.^^;'silyeir*affidaTit#^andV(8) -avail- . aaVbiiill4itfy Aoff dataa nn.e/c. .eas.saary ftao .ne&nVaibl l.e ac1 l.e*4riac,a1 l ffAoorrAcce. to report hp1lant(<kpmi#^44it,s`^|V^W^`4tJWa^'i2^th^p:a'#if/a.acshW'*MithiV":^- CVAo-o--V* .v tracts governing purchase of various ores usualllyly specify date of|recaipt^t|j[er|'J.unfttioal.o*^<^'ii^bf^ : sampling as a basis for metal payments. The above practice in determining receiptss for the month varies someewwbhaat'tf.rfroam,'p'nrraaccfcfciciWe1''off-.A-Annaaccoonndda;* Coppor Mining Company plants in Uontana where date of receipt is usually date"sa^^gial' is weighed. However, the point of receipt in Uontana is the plant iteelf where the material, is^wetghed^wherwasfat Tooele the point of receipt is Warner Junction, between six and seven ucLlea froa.tha?.plAnt^V(i-Soae^delay; might occur . ' between receipt of ore at 'Warner and weighing at the smelter. . Sampling mjy^agaia>be^dels7e4,.',f6r bom time . after weighing. Illustrative of the lapse of time between receipt .ofrcars]^}yttgfri:s^^tim^.oTs&aplizig and settlement is the following data on Combined Metala Reduction ; --v^r . . , ! . *. Lot No. Date of Receipt Date of Sampling''Date`of'Settlement ^ Mo. Business . 5175 7/22/48 7/27/48 ' . 5181 7/23/4B 7/28/48 >. 1948 rr .. : .v From this data it may be observed that both lots were'received^and;'su^ple^^|yuly^l943''altho.ugh one was officially received in July 1948 and the other in August 1948.':: It':may:3|l^^^]^ted`th^^thejBettleAeat for' lot 5175 was prepared in time to facilitate dosing of July 1948:accoaiit8v^Al^>'u^preliglnXry-;a;ttlemeots might be used to facilitate early closing this would izzvolve'coasiderade^cd^^^cd^vzic^i^?lA;-report* ing affidavit silver would also require more statements. When affidavit ailver^ts^not. involved preliminary1 settlements have been made. Thus in receipts of residue from the. Americaa"Zincffojyany-of.Illinois, silver . in which is ncn-affidavit, shipper's assays are considerably delayed^sad'preliminaryl'settlements are'made- to ; facilitate-closing. Typical data on American Zinc Company is as follows:<i . , ' >Date*$f Lot No. 5193 Date of Receipt 7/22/48 Date of Sampling 7/30/48 ' U^LSettlenant'l "Settlement ",v.< 'cirs?*': nutate?^- *;;- . . . 8/30/48' - , . s'-KV From this it may be noted that closing could not be deferred', until.availability of*final data. Adjust ments are made for final settlement in the month following. tj * PMYC 00012277 * /WUW-.l t- mm v ' . ;-'v`iifev GRNBRAL TOMARKS RSCEPT CF MATERIAL - LSAD PLANT (Continued) Received Dates (Continued) Discussion with Ur, W. H. Floyd indicated that instructions have _ _ _ asnt between silver affidavits and receipts as shown on metallurgical mtatem*ntor,^lhua,'Xtd:repqrtJ:silver ?oaicT, basis of prelintinary settlements would involve preparation of reoonciliation^stat'eneat^ahcrwing:ad4ustaents'.to^. ' preliminary ounces silver included in receipts. Such reconciliation stateasots^are'pz^issntl^belng made..*hy. the Montana Plante, ` The main difficulty and objection to determining receipts as above notedfls;,;that.'lota.,ofFore?5ayv'already. "' be in siaslter storage bine, but excluded from receipts because of'un&vailability^of^silver^affidavlt.-or'tri^'^i^. settlement assays. Adjustments in these cases are made to invenatoorrieeB0'``las'^J,.reeiq^uir,^edd.'^Fl^oorr:-^lddetaill-ooEn^/dlnnvveenatotorirl*i*#^^ see .further under "General Remarks - Inventories of Original Material." 'l^ r;--v^1yf? Inasmuch as the receipts are determined on the basis of prraacticability: rather, than upon'fixesd dates, asnoyy' change in present procedure would invariably cause more delay and inconvenience., in;cclolossiinxgig*..,In vviieeww, .ooff.that no recommendations are here made to change present' procedure. . - Repeat Assays on Combined Metals Reduction Company ` Contract between the International Smelting and Refining Company and the Combined Metals'*Reduction Company states "Certificates of assay showing all assay results shall be exchanged. If the'assays shall check' within the limits of variation herein stated, tho average of the two assays shall'govern settlement. If the assays do not check within said limits, at the option of either party, a sample pulp shall be submitted to an unpire agreeable to both parties and the decision of such umpire shall be final if'his assay falls be~ tween the other two assays. If the umpire's assay is above the higher assay .or below the lower assay by an amount greater than the splitting limit (listed below), then the. umpire pulp,; shall: be submitted.to smother umpire whose result shall be final if his essay falls between tbs two assays* of the contracting parties. ' When an umpire assay is above the higher or below the lower assay by an'asmunt not exceeding .the'splitting ' limits then the assay of the party nearest the umpire's assay shall be taken for .ttaal'settlement.* ' It is noted that if the assays do not check within the prescribed limits.a sample'shall be submitted to . an umpire at the option of either party. Contracts between the Anaoooda-.Copper KlningcCoapany and other -' companies relative to sales or purchases of ore in Montana do not contaln'such an optional provision, umpires, being required when assays fall outsids the prescribed splitting limits.^Comparison between the. company#' ' .J-. practices is here mentioned only informatively. However, considerable'variance'from, contract,provisions was noted in use of assays pertaining to purchase of ores from the.Combined Metals* ReductionCompany.?* If.the '*/ - original assays do not fall within the prescribed limits,.either-by^Ter^l^pgreement,-or by.assumed.privilege, repeat assays are reported by each coapany. Providing the assays st^ll'exceed^theieplitting jlimits an i pire is requested. If the umpire assay is then lower than the lowest-? assay/; or higher than the/hhigheesrt: assay.. by more than the splitting limit, a repeat uapire is rsquested rather.' uapire assayer fcr analysis. ' It was noted that an unusually large number of assays are repeated/^Such?^situation'wouldsee* ioWfMl indicate that each company feels out the other in first assays reported,vand; presort to/1repeat assays ' . arrives at a settlement basis. Whether or not the assays ars actually. repeatedj'Iicr reports 'merely- changed/:, is problematical, and not within the province of this audit. Typical.of^he^*practiceJare^.therfollowing:.;, :^ assays on lot number 5037, received during July 1948: Original Int'lr Combined Repeat Ict'l, Combined Settlement . by *' B"PVta Copper .70 .95 Lead 42.4 42.6 Silver Gold 41..15 .05 41.94 41.30 .067 05 Insol 14.9 14.6 Iron 6.4 6,8 Sulphur Lime 14,7 3.9 13.5 4.2 14.7 14.8 ,% Zinc Manganese 5.4 Tr. 4.9 .2 #a .v , a M- /- ..#* ' i* Observation is made that with the. exception of sulphur, use of averages^oaToriginal^assaysv,o.or*r,^wwiitthh uumpiirreess' . as required would give substantially the same settlement results.^Dnlfftfmi^^oQi4Sul^ii^owev.eerjr;^~i4s";not i4m~ - . - . plied on all lots. The above lot was chosen at random,. * i GENERAL REMARKS RECEIPT OF MATERIAL - liAD PLANT (Continued) Repeat Assays on Combined Metals Reduction Company (Continued) . %:< Ur. G. A. Burt, Ore Buyer, was consulted regarding the use of repeat aesiysw-v:He.et^tedithAt-'due to ' wide discrepancies between buyers' and sellers* aseays agreement was reached-verbally or^otherwise'.to peat assays to obtain less variance. N"o* --wr'itte- n -a--g--r-eements we-re- .... raridg.i.d.w-i.....d.......t.h...a.. t the'" letter of the contract was not being followed. ; ior ini oraacive purposes the present practice has been reviewed* - Considering that the contract, writtec as recently as May 24, 1948, does not specify use of repeat assays,^it would seem.thatitheirpuse'by thayOre Purchasing Department should be approved by those representing the parties -.to!-tbecoatract,;:.If approved, such approval. In writing, should be obtained and filed for rrefeerencfe,er....e.... n...... ce: -> y. * Ubo of the practice above described was discussed with Ur* HonIarburton'*o stated that hs would con-' fer nith the derating Department and report his findings to-^tbe Auditing Department, .. -t'-' .-A :.'*' .. t : -\ : ` ' Limits of Variation of Assays - Combined Uetale Reduction Coaoanr . . *.'?, . Contract with Combined Uetale Reduction Company states "Assays must agree within the following limits:" Gold Silver Copper Lead Insoluble Iron Manganese Lime Sulphur Zinc Arsenic Antiacny ) ) ) ) ) ) ) ) 01 of an ounce *2 of n ounc* . ' ; % *2 of 1* .vi. .. .5 of ljt;' ' V;r i 5 of 1)1 Gold Silver Copper Lead Zinc Others ,01 of an ounce ; :- ,3 of an ounce-4^% .'i * --- .. .4 of 'Ut .5 of.li ; oth.r.lo.TlJt^fi;.^; ; .* ; j,'. ' ' The use of limits other than those specified by contract was .callad.tp. Mr*.G* A* Burt's attention. As with the use of repeat assays as previously discussed, Mr. Burt stated tbatstbsruse of limits^other; than specified by contract was the outgrowth of experience of prior years jlnfolarinatlng.;a^large nnaber^pf um- A ^ . pires. Contract provision specifying that assays must agree wjtMneerti^B?liwitJ^uidjjLTulinftt>;t.hnt. thi^^ ' parties thereto were not informed as to the limits actually applied,^i.3oe?clArifioatloa'ahoald-beLrought, by . revision of the contract or otherwise, to effect agreement on the use of'p'roper,rassay'liaits'r^'hr*-Burt agreed hors also, that the letter of the contract was not being.followiwi;^.^ ` Report of the above practice was made to Mr, Bom Warburton. who stated, he .would also* confer with the . Operating Department on the matter and report to the Auditing Department*.^ * ^'v' .y VL .'ff'--. . '.r ,!V `;T. * v$ SHIPMENTS FROM LEAD PLANT : ` Converter Copper Lost In Transit to Raritan Copper forks' ^ aT?*.' v ' . .. . As noted under comments concerning shipmect of converter copper to RaritanJ.Coppsr Yorks,'five pieces were lost from car NYC 133798 shipped on June 23, 1948. The following data'showsvthe.loss in pieces and weight: .............. " Shipped from Tooele, Utah Received at Raritan, New Jersey pi.c A...y. frtWjfoh- lCftjSoir 103.803 c' ; Loss ij. Transit On August 12, 1948, Ur. if. H Floyd, Chief Clerk, eubaitted tthhe* aabboovveeJ!ddaattaaVtfttoo MMrr. Bom;Yarburton, Mr* Tfarburton advised that he in turn submitted the data to the Hew Tloorrkk.J'TTrtat ffic'D"epartmen` t-f"or'iclaim purpoeea* . .r-': PNYC ,22,lial--fai; ; . GENERAL REMARKS INVENTORY VALUATIONS - LEAD PLANT Valuation of Gold <xi r vTr.v- J&rsvar-Tjr-: -' Tab'ilation of gold cost is made Tor all lots carried la inventory* tabulated, tut calculated in total, based on a $34.91 price* After tile culated the value in inventory is calculated at $34 per nanaa; > Tnr.' nYfQ 41ftiTnTJ'}r*F] n 1 "f fatC&\L-- July 31, 1948, the gold cost was actually $3,390*09. No tabulation ofVthe^ounce'^p^d^fori^V^de/Tsca^ooo-' tracts specifying 9l at $35.00, some 10Q$ at $31*816 etc* Rather than 8howounces,;paid*foc^at\an. odd^average price per ounce, and to consistently show a price of $34jDl {government.price les*!'marketing''cost )*-* Hr,*- - Floyd states all gold paid for at that price. Therefore $3,390*09 la divided'^;$34^91'tojarrlye, at 97*109.' ounces paid for, which will admittedly differ by small amount from actual`.'ouncea paid -rpr^f^Tha inventory of - . 97.109 ounces is then valued at $34.00 or $3,301.71. In preparing estimated profit'and*^ioesj-jrtateiaent Ur*'1-" Floyd found that less confusion resulted by consistently shoeing gold revenuetat^$34f.9ypec^UDce/:preferring "k. to hold that figure constant and make the ounces paid for variable.Thlerjprraaccvticcee,/ asa..aaobqoyvo.e'sj^j.aeteeda, :-is noeiled > on inventory data, * ** - *' " ^ Sampling Ore Cost Ore received at the Lead Plant is sampled before treatment for determination- of purchase^coat, and fa* control of metallur^* At July 31, 1948, there were 19,266 teas sampled'ore in stock pile -against;whieh no ' saapling cost was carried, kr. Floyd stated that (1) the original sailing bad served its purpose in pro- ` viding data from *diich settlement could be orade, (2) the ore would have to be resampled upon'treatment, ;aixi (3) the ore was worth less in the stock pile than in a bin or car due to cost of. reclaiming, \?or these . reasons the original sanpling cost was allowed to "wash through1* none being carried against inventory. Hr* Floyd stated that he had received verbal approval of this practice from Hr* g, 0*:5crwerwine* Following the practice of the Lead Plant, no sampling cost is carried in stock pile inventories of the Sulphide Concentrator. ; RECEIPTS - SULPHIDE CONCENTRATOR PLANT v.. Contracts with Park Utah Consolidated Mines Como any . >` - . Two contracts are in effect between the International Smelting Cospacy.'mid^lhe Park.Utah Consolidated- r . Nines Coapany. One is for the purchase of lead ores for smelting, and-originated'June l^il926*WThe other, v* for the purchase of lead-sine ores for the concentrator has been in effect ieince'^ctoberv 31,1-1935, ;and la ' a rather informal letter agreement* Perusal of tbs files containing.the c.ontract^and^correepondence bet* v tween the two companies revealed that coat terms and conditions as;agreed.upon>;are;`fc-.presenfcobeing used^ia;*' calculation of settlements. Subjects upon which no correspondence was foundlarw.'asfollower&'ui.sa*.,: .' ; (1) The payment for sine content is adjusted for bullion freigbttrate** Although the'original. agreement did not specify a base bullion rate the bas>ee rate presi^ly- ^a-in^. .use- 4.-1s- ^*$'*3...5...0.per . .. ton. (2) Payment for gold under the lead smelting contrac.*t 4is. for--, 1lOO^Jmt^feSql^->Slsjpei.^.o.t.p.c.e'<^/if- ... .' assay is .01 ozs., per ton or over* No correspondence'was avi^labij*0n^g^eeaer&st'lttee-v$31.816' per ounce, although its use is prevalent in the Salt Lake Distriot^^Utbod.of^arriving'at this prle. i. i. foil**, *' - ___________ ____ __________ _ - ____ , Government price less cost of delivery ' Q0llgI&:.iJ&S/SfrZUi - Less old Government price - Differential At 90% paid for Add $19 as provided by contract As used (3) Lead smelting contract synopsis as used by the Qre^Settlejwant^pijMrtaent^ooQtains' a-iproviaion. - relative to saepling by the Utah Ore Saspling Coj^>any. '_;Proyiaion^Lli^vab'.whe^vJhe.'<hipper,..electe v Ito have its ore sampled by the Utah-Ore Saspling treat-/:^:-.` sent charge. Otherwise an additional 50$ per ton is: to' ^.Jc^g^hyj^w^l^ej^ati^l^^ltiiigv*/. ,>>. and Refining Cospany for the saspling. Letter agreement.joowir^hi%rpr^rislon^wa^not/avallable Present practice of the Park Utah Coapany is to have ite'pr'efjsypled^^the.TUtah-.D^ejaampling Com- ' pary and receive the 25$ credit as above stated, ' " '' :- (4) Original lead smelting contract provides for a.2Qjr splitting':liadV. on. coFper.^: Splitting limit being used is .3j4. Remarks pertaining: fto sp..l.i.t..t.i.n...g.....l....i....m..............i....t.....a.........l....s..... -^ Redu^tion C- ompany ^ ores are also here applicable* umt r* : V ".*!? cf material - lead plant GENERAL RSMARKS ' X-VU-V^-V-i-..": - tenthly Zinc Ponalty on Receipts of Ores from Combined Metals Reduction Co i Contract provides that when line is not paid for all line in excess of 9.shall he charged at the rate of 2D per unit and at the end of the calendar zednth such lots, in which no zinc is paid for, shall he averaged and the average penalty applied tharon. During July 1948 settlement lot 5136 received from Cox-5 ' bined Metals Reduction Company, Wiilis Smith Lease, was settled for under-terms.of contract with that eon* ' pany* However, in making monthly adjustment on zinc penalty that lot was omitted* -;Explanation of the Ore Settlement Department was that the contract specified purchases only from the Calumet,* Butterfield and *-`T ' Castleton Hines and the Piocbe and Bauer Flotation Concentrators and that:lot 5136 was not included in this group. Exclusion of this lot was to the advantage of the International Smelting1 and Rafining Company, less refund being required on previously excessive zinc penaltiea charged due to lot having only !s4 <ne content. Acceptance of settlement by the Combined Metals Company would infer that contract had been inter-' preted correctly. `, ' . .' '- Adjustment to Base Treatment Charge due to Charge in Coke Price . ` ,, f/ Price of coke increased on July 16, 1948, requiring an addition to the base treatment charge as used. on settlements* Settlements represented by lot numbers 5144, 5145, 5146, 514? and 5154, ore for ihich was oil reported saopitd after July 15, 1948, did not include increased treatment charge* Since the contract, specifies point of receipt no '.Tamar Junction, audit of reports of ore received at that place indicated . that all cars In the above lots wore received prior to July 16, 1948 and ndt subject to adjustment* Be- ,, ceived dates wore not shown on settlements. Settlements as submitted were properly calculated* . ' INVENTORIES - I.ZAP PLANT '. .. Coat to Finish Lead Bullion Inventories . .. Statement is prepared monthly arriving at lead bullion production by adjusting deliveries to Omaha by inventories at .Tooele and In. transit to Omaha, Nebraska* Costs of refining lead and biumitb, and freight to Omaha are also calculated for lead bullion produced. Inventory ooets are estimated on basis of content as determined by Tooele assays. Refining and freight costs on inventories appearing on. the production statement have therefore not been incurred* Estimate of .these costs is, similar/to that prepared by the ..; Great Falls Office of the Anaconda Copper Mining Conpany in determining .coat*to; finish* in process rs--j . finery inventories. Assumption is that reserves are set up by the Kew Xork.Offioe to adjust .the inventories to actual value. ' .j s . ' ii) - y. Included in the same category as cost of refining lead and bismuth is "oost of finishing lead in wells** The New York Office values the lead bullion inventories, included in' which.is the tonnage of molten lead in dressing kettles or "wells." Since the cost of dressing is taken into aocount' on Statement of Cost, treat ment, Production and Losseo, thht statement should show actual oost of producing bullion* However, lead in kettles, although included in bullion inventory is not finished production'*!!'it'requires further droaaimg. ; The estimated dressing cost is deducted by the Tooele Office from the-valueipf-in process inventories,.auto- - ! matically raising cost of producing bullion, although the expenditure has'npt ;.yet .been made* It is ..assumed that the New Tork Office makes further account to counteract the increaaed*pbst7as ahown'by the tboele'st'atm- asent* / :. & . Weights per Cubic Foot on Material in Storage Bins - Lead PlatA Weights per cubic foot are used in determining tonnage in bins aftsrlvolums of^bina hays been determined* These weights per cubic foot are reported by the Chief Testing Engiaeer/orin some in*taneesvtbs Sampling Department obtains weights when sampling the material* All weights per cubic foot as used on!.'July 91, 1948, inventories were not identifiable on weigit tables* Explanation was that Materials in `inventory do not always conform in woight and other characteristics with the sasples upon which original weight!.were determined*. For example on November 1, 1943, weights were obtained on two classes of Bristol ore, one weighing 106 pounds, per cubic foot and the other 136 pounds per cubic foot. Recent receipts of Bristol-ore. are not classified into different types* Height of a cubic foot from a car recently received was 104*9 pounds*!'The clerk preparing the inventory statements used an estimated 110 pounds in arriving at inventory/of.-Bristol..ore in fains, as sell as for other miscellaneous inventories* In instances where exact acale weightsiare obtainable for cot^ariaon with calculated weights a fair degree of accuracy was noted* The following July/1948 data is illustrative $ CalculatedC* Weixht'ii.lVgri:^ Seals Weight-: .* Bin No, 5 - Forehearth Material Bin No. 39 - Bristol Ore (Weight of one lot assumed to equal inventory) Bin No. 40 - Miscellaneous Ore 300,660 198,500 ,h ' r 8,2p m j- 308,420 V' 121,780 209,920.,. Conclusion io that the Metallurgical Accounting Department is doing the best It esn with the data available, r pNYC 00012281 '0 ' . . .ij --mm gsnbral remarks INVENTORIES - IEAD PLANT (Continued) . :rrm Sintering Pleat Flue Dust ' .' L. - This flue dust falls under the classification "Sintering Plant Cleaning*,-etc.,* on`thef^mthiy metal lurgical inventor/ report. Fixed tonnages as reported by the Research Department are .used, ty the'.Metal-/ lurgical Accounting Department for inventory purposes. Sines there is.soas monthlyaccamuTatioaiiaIthe v;' ' dry flue a fixed inventory does not represent as accurate an inventory.as 'possibl*,' `'AttJuly.31,ri48V this inventory was carried at 176,000 pounds. Inquiry was made of Hr, B, 0,! Lokkea/iTestiag KngJjjser,.regard-. '. ing accumulations of dust in this flue. He stated that in his calculations.-be>eaa'^presently,?accumulating ^ flue dust at the rate of 198 pounds per sintering machine day, Ur, Floyd.thought:that^l?1J'.pounds.'per day:` would be conservative figure to use, as prior weights per machine day averaged from 100 pounds to over 200 . pounds. Calculated on this basis since the last flue cleanup at Novembers!, .1947/' the.'inventory- at July; 31, 1948, would have been 247,800 pounds instead of 176,000 as used,'; Agresaant.'was reached to use this * method on future inventories. At September 30, 1943, the inventory will be 301,280 pounds**-?.':' . '' Abrupt change was noted in the main flue inventory from January 31, 1948 .to-February 29/1948, the ,, former date showing 60,000 pounds and the latter date 600,000 pounds* Mr, Floyd .'stated that1 no doubt low recoveries prompted investigation of inventories to determine inaccurate tonnages and the main flue in- ' vsntory was found to hava been understated. Closer contact Aoulijbe kept with the Research;Department to avoid such abrupt inventory changes. Zfc 600,000 pound inventory has since been cleaned up, the inventory at July 31, 1948, being 100,000 pounds. Suggestion is made that on the above mentioned flue, as well as on other flue system inventories, the Testing Department or others la charge should sutazit signed statemats as to tonnages on hand. Falling under this classification is Blast Bag House .fume inpits, reported by telephone to be 430,000 pounds on July 31, 1948* No report on this tonnage was available for audit* Inventory Changes to Arrive at Reasonable Recoveries Similar to practice used on metallurgical statements of the Montana Plants, the Metallurgical Accounting Department at the Tooele Plant arbitrarily changes metal content of inventories to arrive at reasonable re coveries. Explanation received was that assaying or inventorying was no doubt in error and to avoid stating unreasonable recoveries inventory changes were arbitrarily made* Ho cumulative';record of such changes was available, but changes made on the July 31, 1948, inventories together*'witb**affeeton recovery percentages are as follows; - . "*T'vi:;.v ' ' Sintering Plant Sinter Inventory: Original As revised Decrease Cleanings - Preroast Inventory: Original As revised . Decrease Recovery Percentage: Cto Original Inventories On Decreased Inventories Lead - Lbs. Copper - Lbs. Silver - Ocs. Gold - OasT t .. :* . ... . . 50,741 hi - * "25,371*. - r,*K- . . - V'"'-* ' V- -- ' - .* ' 079-y 080 jtAVfc*'-. '( . Blast Furnace Smelting Plant Spels a Inventory: Original As revised Decrease 270,144 260.594 10,450 600,85e'^8^S W;49*66-^ 655.54.351.51 : 145^791* i 813.891 754.545 i 61.546 Recovery Percentage: Ch Original InTwitorlM On Decreased Inventories 100.03* 100,69* ; . : 157.8*Jt y**- ' . ` : 109.S4*;; -i 105,0^-r.^i 107.15* 98,89* Mr. W. H. Floyd, Chief Cleric at the Tooele Plant, was iaferiaedithat the'Moatana Pltntsfof- the Anaoomd* Copper Mining Company were instructed by the New York Office that'arbitrary? inventory'change* -for the purpom* of securing suitable recoveries were permissible except at June 30th and*December- 31st, when actual inventor!** and assays must be recorded* Mr. Floyd stated that ea recoveries were out,.of line an investigation wae usually made to ascertain under or overstatement of inventories and that%tb#> statements as reported gavw effect to corrections ifclch were necesaary. ; ~j Cjt.- :>a^''-4sT` PNYC 00012282 V'-i-ir: it- . iS',.; yi; 'Vsjar-gSBNg :*- -***. 40. INVENTORIES - LEAD PLANT (Continued) Inventory Taking Clarkr from the Metallurgical Accounting Department 'at the first.'.ofiieachfa..-.^_____Tv>_____ v______ _______ storage bins for determination of invent17 tonnage and sake obsarvation^of^aU^jriJw.elltti^oiis^iiiventorieal^-- yiy. such as full and partial carloads, material on floor, etc, Za'0oas^instaaces^apa^ioi^ofin|to2Ui4^e''M^-'^:y r reported by the Operating Department were at considerable variance'with>tho"se|aWl'cuiated*i^tha?Ac8ounting' ;-^- Department, Operating Department tonnages were used for comparative purp<^e8;oaJ^sCe.xceptV)dia^clerical!force was incapable of arriving at reasonable tonnages. For example on Slag Tre*taiot?lant^tonnage8 theviuper-.^ ',';' * intendent's inventories were accepted as he was more familiar with the location^anditpproxiaate:tonnagee,'^ >'' A conscientious effort was made by the clerical staff to obtain accurate invent^&?' V i**w8IRre*?r SHIPMENTS - SLAG TREATING PLANT &: Weights used at Bartlesville. Oklahoma . ;^ ___ r-> f ;r~ Bartlesville weights and moisture percentages are used in making settlements for`deleadsdtfume received ' *; from the Tooele Plant, In many instances the weight upon which freight was.'paid-'was disregarded, :wlth notation "Wet down for unloading" being written upon the assay and weight certificated* Assumption "iailthai'Tume was dry and dusty and water added to prevent dusting loss. Typical examples.of weights`after wetting''down are as *>' . follows: ' `' "` ' ^^1 : Net Bartlesville Wt 8 , ' ' Tooele Wta ' ' . Car Numbap Freight Weieht i Net H2Q Drz i------Net R20 ;hx Dry Weight' Difference [EQ 46497 MOP 23200 113,760 103,920 117,220 107,060 3.05 113,640 2.50 106,160 115,840 0,00 115,840. 105,660 *28 , * ,109,360 . 2,200 . . ;20o .. It nay be noted that some loss apparently takes place between Tooele and Bartlesville 'teethe; comparison, indicates. Of interest is also the loss in djy weight between Tooele-weighte andfoartlesyilla weightaj^ftar wetting down. Both loss in transit and excesr*-- ---------------- * - . r._ .. .--ji, ., .. ' . loss in dry weight. The Tooele Office keeps meats. The cumulative data shows that a INVENTORIES - SLAP TREATING PLANT Consignment Stocks of LSadcd line Oxide Consignees usually submit monthly leitttterso on stocks held on. coQad.gzaaent,.^along!with>resiittcncevfor sales, On Noveaber 29, 1946, car S,P, 37809 was shhiipppp<ed to The Pervo C# ^.j^,^I^^j^e_jls_s_,_,.'.C. aliforril,v^J- 9- ue ..to'-..^/Vv financial difficulties of the Pervo Coupajnity this imnvrentorvy {(900^.000::IlbhsZ^lj1^wwaasiTTttrraanneaferred tooT'CC,^,L?T/'DDiumncan- Co*- '1 pany, Los leaving a Angeles, California during August 1947. balance of 67,100 pounds inventory. As nSo arlescoefnt2'l2e,9tt0e0r^sp^owuaedi^sfaornas^tirleepXofrrtosjdr :tfhoeri.;Cko^vLa.iaf&l>jenrc,a-'4a5C^oFi,f^mj - pany relative to this inventory, inquiry was made at the Salt -->,- - - information on file was letter of March 9, 1948, C, L, Duncan firming possession at December 31, 1947, of 671 bags high leaded quantity is presently being carried as a portion of the consignment*Anveor SHIFMB1TS - SPLPHID8 CONCgNTHATCR ' ' .SaS r1s6Cui'-j'. S-i* ;:;a Zinc Concentrates to Anaconda and Great Falls. Montana ----- '--------:---------------------------- ... ... >- Agreement of January 1, 1945, providing for sale of concei^at^s^I^e^Anaoanda^ppar^MininglCo^any^-^SifS does not specify splitting limits or provide for umpire assays .T.Perus'al-^ofXsetSleaentsJfrom'Jaaaaryr--1947, through July. 1948, disclosed very doe# agreement on zinc assay between the coopanies was ,6$ and an average of the two assays..] Since correspondence is on file relative to splitting . .............. bismuth residue froa Anaconda question arises as to desirability, of^sstablish As the transaction is between the parent cospany and a subsidiary,f aidjsi.--^* sent, no splitting limits may be desired, Establishment of limitSj should, cants of the respective companies. CONCLUSIQM . . , y JSSraT _ w^m ...... . Audit of the metallurgical records of the Tooele Plant discloeed'no ;crepancias^oftmajoc ia-''* portanca except for divergence from contract terms on as saying<aad splitting^ __ _ ;#iaboTerdeVcxibed,^All v office -records were neat and orderly and an exceptional degree^of .Aix'gracy^wa^^t^fco^th^^-AalV^stiovofr.i? v? v2 settlements by the Ore Purchasing Department at the Balt Lake Qffice^'end?iD^thyprejie^atlo: pfJstataments^by g the personnel of the Metallurgical Accounting Department at'the^Tcoel^Officeto u ** 1J iratioaoWasire^'F^'' ' - ceived from all departments during the course of this audit, mm. INTERNATIONAL SMELTING AMP REFINIiC TCCK12 PLANT - TOCgLg. UTAH ^ REPORT ON AUDIT OF IHS COPPSR PUNT, LEAD PLANT, SLAG TREATMENT PUNT A1D;3 PIANT OF TOE INTTONATIOMAL SMELTING AND REPINING CQ1PANT. TOOELE. UTAH.-FC8<jDLT MONTH OF JUUT Wa ' - \ ' [jH Audit of the Tooele Plant of the International Smelting and Refining Coopony'embraces': exudation of records for the month of July 1943 to the extent outlined in "Books and Record* .Checked*?. Ho..!pbseryatioa'\of July 31, 1943, inventories was made, but methods of inventorying were observed at'iuguet^lst :and'September, is48* . . -rruov "V -v - `,',eisr . * ,V"* ;.y .. ..'JJg..- ' Audit covered all classes of materiel received and shipped and all(,inventoiies:at July 31*|?1946/| a*.' included in the July 1943 Tooele Plant Metallurgical Report* sv%' ;*> .. - ' 'v4 Lead Plant ores from four shippers out of thirty two from ^jom ores sere received were-audited fa* weight and metal content. Ores from those four shippers represented 2 of total weight received during July 1943, About 23f> of the settlements covering purchases of ore from the four shipper* were audited in detail for atiaerence to contract terms, footings and extensions, ... ' : (* ' Sulphide Concentrator ores from the Park Utah Consolidated Hines Coapaiy. and.leasers of! the Rational' : Tunnel and Hines Company were audited for weight and metalcontent. Ores from those companies represented.'?^ of total wei^it received during July 1948, fifty percent of the Park Utah.settlements and all'.the JJational': Tunnel settlements were audited in detail for adherence to contract terms, footings..and.' extension*,^ *. : ... - Wherever possible, original sources of information such as scale tickets, assay certificates, bills of lading and plant reports were used in the audit* The report includes date on. the physical and accounting features connected with receipt of material and shipments of products, determination fvinTentries,'.errprs;end discrepancies and general remarks concerning the audit* .... The report is divided as follows: . Synopsis of Plarit Operation Copper Plant Lead Plant Slag Treatment Plait Sulphide Concentrator Plant Errors end Discrepancies General Remarks and Conclusion See peg* following for detailed index* * to 4, Inclusive ;*^8. tolie. Inclusive; MiAuditor?;; * Jjli _. . .,...............igC? :JV.aK ' "i i rt>^l^i'^^pctober. 29th,''l948 'W. :?*rr.-.-feaav->ala;. 'i. ' V"' PNYC 00012284 *. "v '*: ?Kf:i