The Alliance herald. (Alliance, Box Butte County, Neb.) 1902-1922, November 01, 1917, Image 9

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    FEATURES POT
ASH INDUSTRY
(Continued from Page 1)
but the fascination of the sand hills
got htm, and he lived most of his
years there. In his odd moments he
did prospecting, and early settlers re
call the stories he told them of the
riches that lay in the potash deposits
in Sheridan and Deuel counties. So
thoroughly convinced' was he of the
value of thepe that he made a large
number of placer filings on lakes from
which today thousands of dollars'
worth of brine is being pumped. He
was never able to interest anyone in
it as a business proposition, and years
ago his placer filings expired.
Some six or eight years ago, study
ing chemistry at the University of
Nebraska, were John H. Show of
South Omaha and Carl L. Modisett,
whose father is a cattle buyer at
Grand Island. Through their hands
as students passed a number of cam
ples of minerals, including potash,
which the soap-makers at South Oma
had were interested in having exam
ined. The interest in potash thus ex
cited was enhanced when later Modi
sett did some work for the state soil
survey that Included the testing of
the potash content of many of the
lakes in the producing h-vh. They
succeeded in getting T. E. Stevens of
Omaha Interested also. Mr. Stevens
was formerly in the banking business
at Blair. Some yearB ago he moved
to Omaha and bought control of the
Corn Exchange bank, which later he
sold to W. T. Auld of Lincoln.
That was before Germany started
In to whip the world. Before that
event occurred Germany supplied
America with potash, which has a
number of UBes, including some in
the glass industry and the fertilising
Industry. The potash deposits there
are in veins like rock salt, and they
were sent to this country as ballast
In ships that took back goods to Ger
many. The stuff Bold for from $7
to $11.33 a ton, the last quotation
being just before the war opened.
Mr. Modisett clung tenaciously,
however, to his dream of wealth.
Show was equally game. Under an
oarrangement, Show went to work as
a chemist In the Cudahy plant In
South Omaha, and his surplus earn
ings went to grubstake Modisett, who
was still plugging away In the sand
hills on his voyages of discovery.
A Homesteader's Sorrowful Tale
Three miles north of where the
town of Hoffiand is now located is
Jesse lake, which occupies 330 acres
ness man of experience and com
mands large capital. He went to
San Francisco and hired the best
chemist he could find. Ho brought
htm back with him and be is paid,
according to rumor, an almost fabu
lous salary for a chemist. Mr. Hord
built at Lakeside what the experts
say is the most economical and effi
cient of all of the plants .In opera
toln. He did not need to .uy land,
neither does be have to pay anybody
royalty on potash lakes. Snow lake
Is one from which he draws his brine,
and all of the others thnt supply his
plant are located on his own land.
Mr. Kichardson is in charge, and the
only other persons interested besides
the Hord heirs are several business
associates and close friends of Mr.
Hord, at Central City, where he UveB.
How Kri Mark landed
The next company to enter the
field was the American Potash Com
pany, which built the first plant at
Antioch. It had its being in the
raise big potato crops Is that they
have good potash mixtures In the
soil.
Sws illation In lease
There has been considerable IBM'
ulatlon In the leases on lakes. Most
of them are made on a 12 V4 per rent
royalty. Holders of these leases are
negotiating with capitalists in an ef
fort to get in on the big money. Many
of these lakes are really ponds. Some
of the small ones are strong in pot
ash, but they are scattered and pipe
lines cost about $3,000 a mile to
build.
The potash area is about twenty
miles east and west and thirty miles
northwest and southeast. In this
oval are some 700 lakes and ponds.
Of this number some sixty or seventy
have potash in them. The geologists
decline to say that there is no potash
in other lakes outside this area. In
The lake- water must run 6 degrees
under the Resume test. This means
that It must show that there are 6
per cent of solids In the solution, by
the hydrometer. In addition there
must be enough potash in the solids
to make It worth while to extract It.
The percentage runs from 20 to 30. ;
other elements are soda, magnesium,
iron, calcium, etc.
Why Hlmonmiit Weep
But back to the romance. W. O.
Slmonson Is a wealthy and prominent ,
Denver attorney. For a number of ,
years he owned a 4,000-acre ranch In
southern Sheridan county. He sold
it in 1908 to T. B. Hord for $32,000.
.lust before the deal was completed.
Mr. Hord came to him and told him
that he had discovered there was a
big 100-acre lake on one part of the
tract and that It was a damage be
cnuse the cattle wouldn't drink the
fact there are some, but as stated, water. He asked Slmonson to throi
the potash lakes occur only occa-1 off $100 on account of the lake.
slonally and do not contain enough
imagination of Ed Marks of Alliance. I of a deposit to warrant pipe line con-
Some years ago Marks was In the ' structlon.
harness business there. Then he I There are alkali lakes in Brown,
went into the life insurance business, j Cherry, Sheridan, Garden, Dawes.
This took him around the country a Box Butte and Lincoln counties. The
good bit. and he got a good look into . largest are In Cherry, and the richest
the "gold mine" at Hofflnnd. Fired ; in the southern nart of Sheridan and
with the prospect of wealth, he went the northern part of Garden. They million dollars' worth of potash out
to Omaha and Interested Walte are usually depressions, with beds 'of that lake which Slmonson refused
Squires and a man named Williams, that do not permit seepage. They ,r Py a hundred dollars for. Mr.
two other insurance men. They laid range from small ponds to several Slmonson tells the story himself. He
is now DacK in iNenrnsKa as a stocK-
Sinionson wouldn't do It.
"Well." says Mr. Hord. "If you will
throw off $100 I will deed the lake
back to you."
"Nothing doing." said Mr. Slmon
son. And so Mr. Hord had to take the
lake. His heirs will take about a
the matter before some friends of
theirs, chemists and others attached
to the American Smelting & Refining
Company, G, C. Mclntyre, a Mr. Hall
and a Mr. Lowe.
As a result of their activities,
leases were secured on a number of
lakes some twelve miles north of
Antioch on lands belonging to and
leased by the Krause brothers. The
KrauseB are ranchmen, controlling
30,000 acres of land and running
some 4,000 head of cattle. Under
the leaseB they get 20 per cent roy
alty. Their Income runs a little less
than $1,00 a day from these royal
ties. This is authenticated by the
potash manufacturers. The prospec
tors made blue prints of the prop
erties and were successful in inter
esting Walter T. Page, general man
ager of the smelting company, Ran
dall Brown, coal man, and Arthur
English, capitalist.
They organised the American Pot
ash Company, with a capital stock of
$150,000. The moneyed men put in
$80,000 in cash, gave the promoters
$40,000 in stock for their leaBes and
then sold on a prorating basis, the
remaining $30,000 among all of the
group. They erected a plant at An
tioch which employs 150 men. The
company has been operating less than
a year. During that time it has paid
back In dividends all of the original
Years ago' a venturesome gentleman I capital, put $200,000 back into the
whose name Is lost to memory home
steaded In this neighborhood. Under
the Kinkald act he took an entire
section of land for his homestead.
Much to his disgust he found there
on, occupying half of it, this big lake
of brackish water, from which no cat
tle would drink. He finally gave up
plant, and paid 142 per cent besides
Ed Marks isn t selling life insur
ance any more. He is busy devising
means of spending his income. He
received $810 In dividends on his
$10,000 proomtion stock in June,
$5,400 in July and $5,400 in August.
No dividends were paid in September
and quit the ranch. His anguish may i or uciooer as me company i awnu
be better imagined than depicted mulating a surplus for the purpose of
when it is stated that out of Jesse I taking care of the excess profits tax
lakt it is estimated $8,000,000 worth ', levied by the government. This will
of potash will be taken within a few j be 60 per cent in excess of 9 per cent
years on their invested capital, which will
Modisett found this the richest of j be a big wad of money. Members of
the lakes and he made a placer filing I the company think that in levying
thereon in the name of himself and I this tax gross injustice has been done
Show and included much of the i hem, since in response to the urgency
ground around the body of water, of the povernment to increase produc
Full title was not secured until he tion they put $200,000 back into the
had contested the homestead right of plant for that purpose. It produces
the settler, and won because of its , ninety ions a uay
hundred acres, from two to throe
feet deep. They are in fact concen- holder In one of the proposed plants,
trating basins Into which the alkali 1 T Htop nt H- Peters
brine has run, carrying the potash in Tnen there is also the Borrowful
solution. Where they have an outlet 8tory of Herman Peters, big ranch
here Is no potash; It has all been car- mn living near Alliance. Mr. Peters
rled away In solution. The potash became Interested early In the game
deposits are found in the green sand, a! P" his name down for $5,000
which lies below the beds. Most of worth of stock In the American Pot
t he lakes are soda. From Jesse lake ash Company. When he got home
there Is a string of small lakes which that evening he held a consultation
some think Inadlcates an old river with himself. As a result he drove
bed, but the percentage of potash hek to Alliance and went to the
diminishes the further south those home of Mr. Hampton, banker,
lakelets are Investigated. . "Bob," says Herman, "It wouldn't
The potash deposits are not con- hurt ? to lo,8e $5V?,v. ,,ttle
m-A t Z iw ' . i, .i rn. speculative venture, would It?"
hov. hn ,.. rtwn flfiv fot wv Mr. Hampton assured him it would
and the potash comes up In the water,
which is found at a slight depth. In
Jesse lake there are a number of
pumps, which pull the brine from be
low. Some of the lakes go dry, and
where there Is potash the practice Is
to pump fresh water into them. This
water takes up the potash in solution
and thence It Is pumped back to the
plant as brine. One end of a lake
may have a strong percentage of
brine and the other only a little,
tobuoonfi n edat da 7 jo groun. .
Where It Came From
Several interesting theories are
not.
"Well it won't me, either," said
Mr. Peters. "But I sure would hate
to drop $5,000 on this potash prop
osition. What do you say to taking
half of my subscription?"
Mr. Hampton was willing. Just
what Mr. Peters tlnks about It now
that $2,500 worth of stock In the
American is paying around $800 a
month dividends Is not obtainable.
Hulan Likes the Automobiles
L. F. Hulan, promoter of the Ne
braska Potash Company at Antioch,
came up from Colorado. He is no
propounded to account for this pot- longer connected with the Nebraska
ash. One Is that It was brought down Potash works. He says he resigned
from the mountains by erosion when because he couldn't live on the mea
the Rockies were upheaved. Another Ber $10,000 a year salary the com
! that it in the rAiiit of thp nrtinn pany wanted to pay him, when his
abandonment. With the meager cap
ital they had the two e-students put
in a solar drying plant. This is a
scientific erm for saying they pump
ed the watf out into improvised
beds, and let the sun do the work of
evaporating it. When that process
was completed there was left behind
the potash salts or crystals.
Along about this time the well
known Dame Fortune made up her
mind to smile upon the two young
men. The kaiser unloosed his armies
Europe and the potash mines there
closed. The price of potash in this
county went upward with a rush.
Mr. Stevens' aid was again secured.
He invested $15,000 in the company
Other Plants Follow
All this time the folks up at Alli
ance, within a few miles of the bo
nanza opened up, were silting around
scoffing. They had lived there a long
time and were convinced that there
was nothing in the sand hills but
sand. Along came a man named
Hulan, who started In to promote
another plant at Antioch. He Inter
ested a few persons In Alliance, but
most of the $500,000 t hat he se
cured and which wont Into this plant
came from Denver and other Colo
rado capitalists. This plant is the
Nebraska Potash Works.
The Alliance Potash Company, an
almost purely local enterprise, is now
of a microbe on silica rock. Potash
makes short work of gloves, and it
has also the curious effect of turning
the hear red. If the Industry contin
ues long, northwestern Nebraska may
be a country of red-haired persons.
Some of the men interested in the
new plants, as well as the old ones,
have been buying lakes outright.
The Krauses paid $6,000 for a bIx-
acre dry hole the other day. and the
personal expenses were 20.000. He
Is remembered in Alliance largely be
cause of his penchant for automo
biles; a new one every few weeks be
ing his Idea of indulgence. Since his
disconnection with the Nebraska he
has gone south for the winter (and
probably longer).
Aside from Krause brothers, none
of the lake owners has been reaping
rich harvests yet. The reason Is that
Hoffiand people paid $15,000 for. me companies nave noi yei bu.i
Clough lake, seventeen acres. Lake I pumping much from leased holdings.
owners are canny enough in leasing
their properties to insert a provision
that these be worked and not held in
definitely for speculation. They re
quire a guarantee to this effect.
The potash country runs about flf-
but they will soon be in on the
money making.
The big assured profits In properly
managed plants with leases or own
ershiD of lakos with strong brine
takes the business out of the wild-
teen miles north ana nrteen suit iwubi, tivwwwiusj !.
south of the Burlington road, with j with a real proposition has to go
the northern district the richer. long in search of capital.
Some of the potash men say that j '
practically all of the good producers! Sprains and Strains Relieved
are now located. One seventeen-acre I Sloan's Liniment quickly takes the
lake, for Instance. Is said to contain pain out of strains, sprains, bruises
$400,000 worth of brine. It sold for and all muscle soreness. A clean.
i $15,000. They say that It Is pos- clear nquia eaBiiy appneu. n hwv
sible to test a lake and make anaccu- penetrates wunoui ruuuing. oiuu
rate estimate of Its value. This Is Liniment does not stain the skin or
doubted by others, who argue that clog the pores like mussy plasters or
the saturated waters have often cov- j ointments. For chronic rheumatic
ered larger areas than are now indi-; aches and pains, neuralgia, gout and
rated and that the potash will be , lumbago have this well-known rem
found in the brine and sand below edy handy. For the pains of grippe
the surface of the ground In places and following strenuous work, It
some distance from the defined bor- gives quick relief. At all druggists,
ders of the lake. '25c.
that was formed, first known as the building the third plant at Antioch.
Potash Products Company, now the j
Potash Reduction Company. W. A.
Reddick, a capitalist, took $5,000.
and W. H. Osten berg and H. H.
Reinboldt, a chemist, made up the
remainder of the $50,000 that was
first put into a plant at Hoffiand,
against the options held by Modisett
and Show. At that time there was
nothing where Hoffiand now rears its
head.
A small plant was put in at Hoff
iand. Pipe lines were run three
miles north to Jesse lake and the
brine pumped to Hoffiand, where,
through an evaporating process that
the layman is probably not Interested
in, It came out as potash salts. It
wasn't and It IsnC pure potash. It
is mixed with Bodiuin compounds.
and runs usually around 20 per cent
of potash. Several times the plant
haB been changed, torn out and new
machinery Installed, until today the
Investment Is around $700,000. Two
hundred men are employed. Later
Victor Jeep and Clark Denny, also
of Omaha, became interested, and
these eight men are reaping a golden
harvest.
Vast Profit in Potash
Potash Is now selling on the mar
ket for from $4 to $5.60 a unit. A
unit is 1 per cent of potash. Much
of the compound assays 20 per cent
or twenty units and it brings from
$80 to $125 a ton. Some of it has
aasaved $150 a ton The cost of man-
iifurnirinsr runs around $30 a ton.
Finurn it out for yourself. The Hoff
iand ntant la now turning out 100
tons a day. and will soon be produc
lng 200 tons. The average market
price Is $100 a ton. As the cost Is
$30 a ton this leaves $70 a ton profit.
or $7,000 a day for 100 ton runs
Modisett and Show, according to
the estimates of men who are well
acquainted with the industry, will
take out of the plant In dividends
this year a half million dollars eacn
Judge Redlsk got $5,000 dividends
last month on his original invest
went of $5,000, and the others share
as well
Heber Hord was the next to ven
ture in potash. Mr. Hord is a bus!
It has a capital of $250,000, the ma
Jority of which is held by the Krause
brothers, mentioned previously; R.
M. Hampton, banker; Ed Mallory and
a few others. It has leaned lakes on
property close to those from which
the American takes its supply, owned
by another Krause living in Wiscon
sin. The two Nebraskans are John
and Herman Krause.
In addition to these, four other
plants are In process of incubation.
Lakes have been leased and the Job
of getting capi'al under way. One of
the new companies has the backing
of the Metz Bros, of Omaha, and it is
understood their brewery at Omaha
will be dismantled and the machinery
which is easily adaptable for the
evanoration process, moved to the
site of the proposed plant, which will
probably be at Lakeside.
The men interested in tnse poiasn
projects are not all making the same
big money as the original plant, be
cause the brine runs weaker. There
is an inexhaustible demand for their
product, but if the war ends within a
their bonanza will be close to its end.
Jesse lake, which Is said to contain
18.000.000 worth of potash, at pres
ent prices, is far from exhausted, but
there is. of course, a limit to its pro
ducing capacity, as well as to the pro
ducing capacity or all or tne otner
lakes. If the war should continue
for five or six years all of these pot
ash men will reap many millions or
Droflt.
The principal use of potasn salts
is in fertiliser. The German kind
can be used in several industries
from which the Nebraska product Is
barred. Most of the potash salts are
sent to Atlanta, where they are mixed
in the fertiliser factories with other
minerals needed by lands that must
be treated. The other materials dif
fer according to the needs of the
land. There are other points to
which shipments are made, but At
lanta 1b the big market. Other points
are Cincinnati and New York. Ne
braska land doesn't need, potash.
That Is one of the elements found
In most sections. One reason why
Box Butte and Sheridan counties can
The Nation's Telephone Reeds
Must be Met First
Since the beginning of the
war, ths government has
been using a great deal of
telephone service snd equip
ment, and many of our skilled
men have gons Into the army
signal corps.
Government re
quirements for tele
phone servics, (or
equipment and for
men have had the
right-of-way over all
private requests.
We can perform our full measure of
service to the nation only when wo meet
the government's needs first for tele
phone service, for equipment and tor
men.
NEBRASKA TELEPHONE 00.
International Typographical Union No. 755
UNION LABEL
The UNION LABEL on printed matter ALWAYS means
the BEST, in both the front office and the workshop the com
posing room. There are two printing offices in Alliance en
titled to the use of the UNION LABEL:
THE ALLIANCE HERALD
THE ALLIANCE SEMI WEEKLY TIMES
UNION MEN and LABORING MEN of all trades, if your
tradesman solicits your .business with printed matter ask him
to get the UNION LABEL on his advertising.
Demand the UNION LABEL on Your Printing
AWFUL 8UFFERINQ.
"I suffered untold aony
with neuralgia. I thought I
would go mad with pain. A
friend of mlna advised ma
to take Dr. Miles' Antl-Paln
nil. I did ao and the pain
topped almost at once.
Then I comnstneed using
Dr. Miles' Nervine and be
fore long I waa so that I did
not have thaaa palna mar
mora." B- J. WINTER,
111 E. Flute Ave..
Colorado Springs, Colo.
Close attention to
work is the csuse
of much Ptin and
many Headaches.
Obtain relief by-
taking one or two
I DR. MILE.S'
ANTI-PAIN PILLS
Then tone up the Nervous
System by using
Dr. MlW
Restorative Nervine
IF FIRST SOTTLi, OR BOX. FAILS
TO help YOU, YOUR MONKV WILL.
BE RKFUNOBD.
Wise Cattlemen Vaccinate Calves Against
BLACKLEG
Stock owner cannot afford to experiment with unproved vaccines, it meant
money in your pocket to immunize calves right now with one dote of
Kansas Germ -Free Fluid Vaccine
Made in Wichita, Kansas)
Thii it the only proved preventative on the market approximately 250,000
calve have been immunized with it, and not one afterward died of Blackleg.
It cannot (ire dww to hrihhr miaul or .freed dlteaac In panutra Tbt. i. ih original i-ermlrea
Tacrine. II ti end by In orifiutor and crerjr dote ml out It up to ataadard and will de tbt work.
W. .tat. facta wa mak ia.rov.il alalaaa.
E. A. HALL & SON, Distributing Agents, Alliance, Nebr.
The Kansas Blackleg Serum Company, Inc.
Used by hading
cattlemen to pro
tect herds. Writt
jot names and free
Blackleg Book.
Denver.Colorado
Wichita, Kansas
Amarillo, Texas
TMt TVV, (Jf , Bar
ward if htnir mnd
Soft Drinks and Beverages
BEVERAGES ON DRAFT AT ALL TIMES
Order a case of 36 pints
sent to your home. De
livery made anywhere in
Alliance Rebate for re
turn of case.
CIGARS, TOBACCO. CANDY, LUNCHES
King's Corner
JOHN HODUKINSO.N, Mur
Distributing Agents for Bridgeport Bottlitttf Work
Order Your Winter's
COAL Supply NOW!
It is the wise thing to do
You'll say so this winter, too.
If we could make plain to you the situation, we know that
you would put in your winter's coal supply now. We are not
trying to scare you, but we are trying to tell you. The car
shortage exists. It may look to you like everything is mov
ing, but you'll appreciate what we tell you when winter cornea
and it may be next to impossible to get coal.
We've got coal to sell you today, a We've got coal today to
put into your bin. We can't promise more. It's good coal
and it's a fair price. We urge you to get busy think act.
It will prove to your advantage.
Dierks Lumber & Coal Co.
F. W. HA RG ART EN, Mgr. PHONE 22 111 Laramie Ave.