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Manuscript Group 294

Pennsylvania Smelting Company

Records, 1899-1943
3 cubic feet


The records of the Pennsylvania Smelting Mining Company are part of the records of Day Mines, Inc., donated to the University of Idaho by Henry Day in 1984 and 1985. Initial processing of this manuscript group was done Judith Nielsen in June 1988 as part of the project funded by the National Historical Publications and Records Commission. Processing was completed by Judith Nielsen in July 1992.

COMPANY HISTORY

The Pennsylvania Smelting Company, with George Faunce as president, was incorporated in Pennsylvania on June 5, 1899. Its plant occupied a 3,832 acre site near Carnegie formerly owned by the Pennsylvania Lead Company. At the time of its incorporation its capitalization was $25,000 divided into 250 shares of the par value of $100. In December 1899 the capital stock was increased to $45,000, and in 1917 it was again increased, this time to $2,000,000. According to the by-laws the corporation was formed "for the purpose of the manufacture of iron and steel or any other metal or of any article of commerce from metal or wood or both."

The only business conducted at shareholder meetings between 1900 and 1915 was the election of board members. During this same period the board met regularly to declare dividends on the capital stock.

In 1915 the Hercules and Tamarack & Custer mines loaned the Pennsylvania Smelting Company $75,000 for construction of their plant. George Faunce was appointed General Manager and John E. Williams Sales Manager, each at a salary of $10,000 per year. The records of the May 8, 1916 shareholders meeting reveal the Days to be the major shareholders. Harry L., Eugene, and Jerome each held one share, but Eugene was trustee for the shares held by the Hercules, and Jerome was trustee for the Tamarack & Custer shares. At this meeting the three Day brothers were elected to the board along with George Faunce and John E. Williams.

The construction work at the plant included building a 100'x160' steel and concrete building for all processing procedures, and extending by 185 feet the railroad siding, also replacing steam power with electricity. The total cost of construction to January 1, 1917 was $79,533.57.

In 1916 the plant treated 32,725 tons of ore and bullion, much of the bullion was from the Day-owned Northport Smelting & Refining Company in Northport, Washington; it shipped 26,925 tons of lead, 2,505,000 ounces of silver, and 4,275 ounces of gold. The following year was one of the worst for the smelter as, due to the war and government priority on freight cars, it was almost impossible to get material to the plant. But, because of the war, there was an increased need for lead and between July 1917 and November 1918, the smelter supplied 14,847 tons of lead to the government. Total production in 1918 was up 30.5% over 1916: 42,941 tons of ore and bullion treated, 40,850 tons of lead, 3,040,629 ounces of silver and 4,871 ounces of gold were produced. Wages were increased four times, amounting to a total of $1.20 per day, and $15,000 was spent on plant improvements.

Lead prices fell at the end of 1918, and a strike in the Coeur d' Alenes cut off the supply of bullion. As a result operations in the plant in 1919 were reduced by 50%, but during the latter part of the year the company began smelting cobalt-silver ores. The average pay was $4.31 per day compared with $3.95 in 1918. Production was up by 45% in 1920, but 1921 shipments were less than half the previous year's and, due to a fall in metal prices, the company sustained a loss of $251,000.

In order to reduce its capitalization the company, in 1923, called in one-half of the outstanding capital stock owned by each shareholder. Plans for changes and alterations to the plant were made, and between 1924 and 1925, over $29,000 was spent on construction, and more construction was planned for 1926. By October 1926 the physical and financial conditions of the plant were "unsatisfactory." The Days guaranteed a $50,000 loan to the company from the Wallace Bank and Trust, and the smelter management was told not to purchase any raw material not already under contract. $500,000 in preferred stock was created from unissued stock in the corporation, of which $380,000 was used to pay off the Hercules and Tamarack and Custer debts. The company then borrowed $100,000 from the Bank of Pittsburgh and immediately repaid the Wallace bank.

The Pennsylvania Smelting Company had been unprofitable for a number of years owing to its inability to secure a sufficient volume of smelting material, business unsettledness, market fluctuations, and especially the intense competition. Its 1926 deficit was almost $95,000. The Western directors, A.P. Ramstedt, Jerome and Harry L. Day, after a meeting on May 11, 1927, ordered the plant to suspend operations, clean up the property, and arrange for a sub-lease of the Pittsburgh Office. By July 15 the plant had totally ceased operation.

The board, in 1940, now consisting of Jerome Day, Harry Day, Henry Day, and Paul B. Jessup, authorized J.C. Bigham, who had been managing the property in Carnegie, to do the salvage work at the plant and to sell off all equipment and supplies. In 1941 an option was granted to J.H. Hillman and Robert M. Moore for purchase of the property at Carnegie for $75,000 paid over 3 years: the actual price paid by Hillman & Moore was $67,500, a discount of 10% being allowed for cash payment. The new owners planned to erect a factory to produce specialized war materials.

The shareholders met at the William Penn Hotel in Pittsburgh on April 20, 1942, to approve, by a vote of 1933 to 315, the dissolution of the company. The records which were in the care of J.C. Bigham in Carnegie were sent to Wallace in March 1943.

SCOPE AND CONTENT

The records of the Pennsylvania Smelting Company span the years 1899 to 1943, with the bulk of the material covering the years 1916 to 1929. Included are minutes of meetings, financial statements, correspondence with smelter personnel, a stock ledger lists of stockholders, financial statements and balance sheets, check registers, and tax returns.

ARRANGEMENT AND DESCRIPTION

The records of the Pennsylvania Smelting Company are divided into four series.

The first series, Records of the Board of Directors and the Stockholders, includes only the minutes of meetings held between 1899 and 1940. The minutes from 1917 on were in a minute book which was divided by meeting type: Stockholders or Directors. Although the minutes were removed from the volume the distinction between the meetings was retained.

General Correspondence and Related Records, the second series, is divided into three subseries: files maintained by Jerome J. Day, 1916-1929, those maintained by Henry L. Day, 1925-1943, and a group of miscellaneous correspondence and plant records. The Jerome Day files contain general correspondence related to smelter operation including his expense accounts for visits to the smelter, a railroad map of Chicago's outer belt line, and financial statements. Letters from E.H. Laws (folder 18) give details of the plant construction.

Henry Day's files are a continuation of Jerome's files and contain extensive correspondence with both J.C. Bigham and George Faunce about the operations of the smelter. The third subseries contains correspondence with smelter officers and government committees, blueprints for equipment, and government lead allotments.

The third series is Capital Stock Records. The only item in this series is a stock ledger covering the years 1899-1826.

Financial Records, the final series, contains check registers, monthly balance sheets, state and federal tax returns and unemployment compensation returns.

Removal of cancelled stock certificates, paid checks, bank statements, and duplicate materials reduced the size of this collection by two cubic feet.

SERIES LIST

								Container
I.	Records of the Board of Directors and the Stockholders, 1899-1940	1
II.	General Correspondence and Related Records, 1915-1943	1-3
A. Jerome J. Day Files, 1916-1929
B. Henry L. V. Day, 1925-1943
C. Other Files, 1915-1935
III.	Capital Stock Records, 1899-1926	3
IV.	Financial Records, 1923-1943	3

PENNSYLVANIA SMELTING COMPANY
INVENTORY

Box	Folder	Description                

I. Records of the Board of Directors and the Stockholders, 1899-1940

1	1	Minutes, 1899-1917
	2	Minutes: Stockholders meetings, 1917-1930
	3	Minutes: Directors meetings, 1917-1940

II. General Correspondence and Related Records, 1915-1943

A. Jerome J. Day Files, 1916-1929

	4	A; Application for position, 1918-1922
	5	Audits of 1925, 1926
	6	B; Blockade, 1918-1926
	7	Bullion rates, 1917-1921
	8	Bullion shipments, 1917-1921
	9	C, 1918-1926
	10	Contracts, 1918-1926
	11	Correspondence, 1927
	12	D; Day, Harry L., 1917-1927
	13	E-F; Federal Trade Commission, 1917-1926
	14	H-I, 1916-1925
	15	Income tax (Correspondence), 1917-1924
	16	International Lead & Refining Co., 1917
	17	Inventory, 1927-1928
	18	K-L, 1919-1926
	19	Lead sales, Government, 1917-1918
	20	Lead sales, General, 1917-1921
	21	M; Maps, 1917-1927
	22	Miller, H.H. Correspondence, 1928-1929
	23	N; Northport Smelting & Refining Co.; P., 1917-1921
	24-25	Pennsylvania Smelting Co., General, 1917-1926
	26	Pennsylvania Smelting Co., Minutes, 1922-1928
	27-33	Quotations (report of operations), 1916-1920
2	34-39	Quotations, 1921-1927
	40	R; Refining in transit rates, 1917-1925
	41	Reports on mill operation, 1917-1924
	42	S; Sales & inquires, 1919-1925
	43	Sale of property leads; Silver price, 1920-1928
	44	Statements, Financial, 1917-1926
	45	Strike; W, 1917-1926

B. Henry L. Day Files, 1925-1943

	46	A; American Metals Co.; B, 1926-1940
	47-49	Bigham, J.C., correspondence, 1936-1942
	50	Bills, Hercules, 1929-1932
	51	C-D, 1930-1943
	52	Dwight & LLoyd Sintering Co., 1925
	53	E-F, 1935-1942
	54-55	Faunce, George, 1931-1937
	56	Franklin Smeltering & Refining, 1937-1938
	57	I-L, 1927-1942
	58	Lessees; McKallip & Co., 1934-1937
	59	Meetings: Stockholders and Directors, 1930-1942
	60	Mercantile Metals, Inc., 1941-1942
	61	Mellon National Bank; Metal Merchants, Inc.; New Jersey Zinc Co., 1929-1934
	62	P; Pittsburgh, Bank of, 1931-1941
	63	Pennsylvania, Commonwealth of, 1933-1943
	64	R-S, 1932-1937
	65	Sintering plant sale, 1934-1939
	66-67	Statements, Financial, 1931-1940
	68	T; Capital Stock tax; U; W, 1932-1942

C. Other Files, 1915-1935

3	69	Correspondence: Preliminary negotiations, 1915-1917
	70	Correspondence: George E. Faunce, President, 1917-1927
	71	Correspondence: E.H. Laws, 1919-1926
	72	Correspondence: H.H. Miller, auditor, 1920-1926
	73-74	Correspondence: John E. Williams, secretary-treasurer 1916-1919
	75	Correspondence: Lead Producers Committee, 1917-1919
	76	Correspondence: War Industries Board, 1917
	77	Coded telegrams reporting on plant operations, 1917
	78	Gladstone Mountain Manufacturing Co., 1926-1927
	79	Correspondence, 1934-1935
	80	Minutes, by-laws, agreements, etc., 1915-1917
	81	Bin and conveyor layout, n.d.
	82	Cottrell precipitator, 1916
	83	Government lead allotments, 1917-1918
	84	Metal prices, 1920
	85	Rail rates, 1917
	86	Embargo, March 1918

III. Capital Stock Records, 1899-1926

	87	Stock ledger, 1899-1926

IV. Financial Records, 1923-1943

	88	Monthly balance sheets, 1923-1927
	89	Balance sheets and working papers, 1941-1942
	90	Check registers, 1934-1943
	91	Federal income tax returns, 1930-1942
	92	State income tax returns, 1936-1940
	93	Unemployment compensation returns, 1938-1941

mg294.htm / March 1995

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