Correspondence, Levi Syphus to Sadie B. Clayton

St. George, Utah Feb. 20, 1340 Mrs. Vv. M. Clayton Santa Ana, California Dear Mao.am. Your letter containing quotations from Willard's letter to you received, and same has been read .with considerable interest. ?With respect to their having all of the property, that would not be oojectionaDle providing the royalties are not too low, and that the minimum monthly royalty was high enough to be the equivalent of interest on a purchase price for the property that was high enough to mean something. Especially if that price is to be paid in royalties on ores taken from the property. Or, second, in the event it should be just a lease' of the property, without an option to purchase, the monthly minimum royalties were high enough to be satisfactory to the owners, something they will determine if, and when, the suggested meeting occurs. With respect to the suggestions Willard made Mr. Burhans, and which he is reporting to his company, I naturally speculate as to what they might be- Whether suggestions for the financing and operation of the whole property under the deposit, or second, I can see that it may be possible Willard has had skilled men employed to develop processes for handling the ores of the property, or otherwise acquired such processes, which if set in operation, would result in the comsumption of a large quantity of the ores. Whatever it may be, it will be all right with me, if acceptable to the other owners, and which does not operate to cut down the per ton royalty, on the ore, something I think is not likely since you have both stood persistently for royalty of fl per ton that is until very recently, when you reluctantly consented to reducing it to 50$ a ton, provided a substantial majority of the owners deemed it advisable or necessary . Now with respect to Willard's "stab" in the dark about blowing up the ore, blowing it into the walls of buildings as for insulation purposes, etc., I will make the following comment : The U. S. Bureau of Mine s has developed a device and a process (open to puolic use) for the shattering of ore by means of compressed steam explosion That is, to say, hard quartz and other ores are placedin a steam chest together with water for generating the desired steam, where­upon heat is applied until the desired pressure is obtained. That has the effect of forcing the steam into all the pores and crevices of the rock in a highly compressed form, whereupon the chest is suddenly opened permitting the steam to expand thereby shattering even hard quartz into the size of small garden peas. The per ton cost of || ores shattered under that metnod, according to the bulletin, is only 20$. I have in my possession a letter from Mr. Hedges, present acting head of the U. S. Bureau of Mines, in which he agrees with . me that our ore can be blown into dust by that method. He further says that as soon as they have their force increased, the Bureau will make the experiment, advising me as to the time, etc. Magnesium Oxid, which is the calcined magnesite, has long been known as a good insulating material. Therefore, with our ore blown into dust at a cost of about 850, per ton, the dust can be conveyed into a calciner without losing any of the heat of the explosion, and the temperature raised to about 450°C., thereby completing the calcination, and probably would not cost more than 5O0^!^^/j5er ton. (Any other magnesite ore known requires from 500ito 7O0D heat C. for its calcination. Furthermore, none of the Crystalline magnesite or brucites, such as those at Looning, Nevada, or those in the state of Yv'ashington or California, can be shattered by the steam chest explosive method. If the Carbon Dioxid gas contained in our ore could be marketed in Los Angeles at about per ton, thereby paying the freight on the two tons of crude ore from the deposit to Los Angeles, then in that event, the one ton of magnesium oxid, in bags obtained f'rom^ the two tons <f crude, would not cost more than $6 per ton, that is, it’s production cost, consisting ofroyalty upon and mining of the ore, placing it on board cars, etc., calcining and bagging tt would not be more than $6 per ton. Such material has long been known as a good insulating material, but the high cost of it, running from 20 to; #30 per ton has prevented it from being largely used. If appertures were left in the center of walls, the dust could be blowrij or otherwise filled into^ it. It could also be made into rolls or batting between layers of cheap cloth, or strong paper, and used for covering ceilings, and otherwise. ,Notwithstanding the foregoing, I do not think that even at the low cost of #6 per ton it could successfully compete for insulating purposes with vermiculite, that is a black mica which is mined in great quantities in the sta|e of Montana and elsewhere, and-several carloads per day of it shipped to various parts of the United States. It is very much lighter than magnesium oxid, and one ton of it would go as far as two tons of magnesium oxid. It is my understanding, vermiculite is laid down in Los Angeles for $7.50 per ton. I do not know, however, whether that means the raw vermiculite, or the processed product. If it is the latter, then Willard’s stab is all baloney, out if it is the cost of the raw vermiculite down there, then t^ere would, be a good chance of getting quite a lot oi our^ product used along the Pacific coast, and also along the Atlantic coa.st cities, if sent by ship from San Pedro to the Atlantic eoast. I therefore suggest that Willard immediately ascertain whetner or not it is the raw vermiculite that is laid down in Los Angeles for #7.50 or not. If it is the processed product, then the matter might as well be dropped. It seems from ’Willard’s letter that unless Burhans people see fit to get behind Willardls suggestions they very likely will be willing to lease part of the property. I have never yet told Burhans what the per ton royalty would be, and deem it wise not to do so, until he is. smokedout on some of g p other points. I believe his people know what they are doing, and that they will do something immediately and tangible before they will give up taking even part of the property. I assume that Burhans will report Valley people. If so, let me know are. to Willard before he does to us immediately what his representations Very truly yours, Levi IS Syphus St. George, Utah Feb. 20, 1940 Mrs. W. M. Clayton Santa Ana, California Dear Madam; Your letter containing quotations from Dillard’s letter to you received. I am serining copies of most of it to some of the others. X am guilty 01 a little duplicity in tne mcitter, in tne harmony, and therefore am omitting interest of . ? ? from the copy, Willard's suggestion that they stick to me and I think are as spokesman in the matter. Those to a proper think will automatically gravitate voluntary action of all concerned. that they have me matters which I level as the I am inclined to think Burnans does not represent John Manvllle. It is my impression that he does not know who are the principals back ot the Engineering Process Company, wnich latter I think is only a cover . It is my impression that the principals consist of descendants of parties who would forcibly have taken the property years ago together with-some parties high in official life in Washington, D. C. in connection with some powerful financial interests. I expect them to trade for some timein order to get the property at the lowest possible figure, whereupon government money will be obtained through the Refinance Corporation with which to install necessary plants, etc. This however is only a guess, but I am viewing it from that angle conscious they have no kindly teeling ior us, ^nd they will take advantage of Therefore, the necessity of expectation you are sending if, and when, conversations careful not to agree to any in five or t m years from now, the bond to force us to supply _\ opportunity which presents ifefeelf. our being very careful. With the this to Willard, I suggest to him that are renewed with Burhans, that he be Bond and Lease Proposition. Otherwise e might find ourselves sued upon perfect title which they themselv es might have purposely involved. Any deal, if it provides for sale must be upon the basis of an option and' lease under which we will supply abstract of title down to.the dateof the agreement, which abstract together with our deeds will be placed in the escrow, and under the terms of the agreement, they will have to accept title as shown in the abstract. Now form my second letter to you, copy ot which goes to some of the oth< as soon as Willard sees it. iv owners. Have this letter destroyed Leiv i W. t- yph'f'u's'--.y''wP'j 0 a lj^ 4 i ,P m i n g i A J lJL J T ^ ?" if§g3 1 u/ /b l iSLJ \ I After 10 days, return to .: h - i- y .i.. s P» 0 . B ox <ci93 SAINT GEORGE, UTAH.