Test Case Under War Minerals Relief Act

The entire War Minerals Relief Commission heard the case of the Chas. T. Pyrites & Chemical Company of Georgia on April 15 and 16. The Commission insisted on great detail with regard to the entire enterprise, although the main questions seemed to be of the amount involved. It is considered by the Commission that this claim comes unquestionably under the Act, it is one of the best examples that has been brought to the attention of the Government thus far. Testimony showed that operations were done on the property late in 1916 without request from the Government. Preparations were made to work the pyrites deposit on a comparatively small scale but , following a visit from a representative of the Secretary of Interior and a personal interview of the principal owner of the property and Secretary Lane, operations on a much larger scale were begun. The amounts expended prior to this interview were carefully separated from the expenditures thereafter. Testimony showed that it was the intention of the owners to transport their product by motor truck to the railroad-13 mi. away. This limited shipments to about 50 tons daily. Under the enlarged plan taken against the better business judgment of the owners, a railroad spur at a cost f nearly $200,000 was built to the mine. The operation included a concentrating mill with a capacity f 600 tons daily and an expensive dam to make possible the use of waterpower. With these improvements, the company was just beginning, operation under its enlarged program when the armistice was signed. This resulted in a greatly decreased demand and consequently lower prices, with all prospects indicating that the property could not operate profitably when Spanish pyrites begin to move.