The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-10

The following extracts from the report
are OF general interest. especially the
opinions of President John ID. Ryan on
the copper outlook:
"As The contracts for the sale OF met
ais produced by the companies controlled
by your company were about TO expire.
and ms these companies had transferred
10 the Anaconda Copper Mining company
all OF their properties and assets. IT was
thought best by your directors that the
selling organization and The refining or
the bullion produced by that company
should be controlled and managed by your
company. The United Metals Selling
company had sold for about ten years
The metal products of the mines, acting
as agent for all OF the companies in
terests. as well as for a number OF other
producing companies. The company also
owned 40 per cent Of the stock of the In
ternatonal Smelling & Refining company,
which owns fhe refneries at which most
Of tlle metals produced by these compa-
mics are refined. In order 10 avail our
selves or tho efficient and established or
ganizatlon OF the selling company and 10
own a large interest in the refining
profits, which are likely 10 Increase with
improvements in the methods and prac-
stock ot the United Metals Selling com.
pany, IL It could ne acquired at salts
factory price.
Details of Purchase.
After prolonged negotiations a price OF
S2il a share. or $1,000. 600 for the capita
stock after deductinE dividend then de-
clared, was agreed upon. and that price
was paid for all stock offered. Nearlc
all Of the outstanding stock has been pur-
chased, To provide funds for this pur-
chase your directors authorized and is
sued Si2.500 000 per cent two year notes
dated Aprll I. 1911. In addition 10 the
S000.000 stock Of tho International
Smelling &; Refining, COMPANY at par. the
United States Metals Selling company
had In cash and cash assets. chiefly ac-
counts receivable. an amount that gave
s22O share. Allowing value below Its
market price for the stock OF the Inter
national Smelling & Refining company.
and .crcditing earnings on uneNpired con
value of the United States Metals Selling
company's stock was fully equal to the
price paid for it. and no allowance was
made for good VIII or the going bust
ness. excepting the unexpired contracts
mentioned.
AT the time Of tho purchase of the
United Metals Selling company stock.
long time contract for refining 10 go
into effect In September OF this year was
entered Into between the Anaconda Cop
per Mining company and the International
Smelling K Refining company. which In
sures large decrease In that item OF
cost OF product.
Since tho increase in 1901 in the cspi-
tai stock OF Your company from It's orig
Inal Issue Of S75 .000. 900 10 It's present
amount. In order to acquire The stock of
the Boston & Montana Consolidated Con
per ~ -llNeE hlUlnC company ana the
Butte & Boston Consolidated Mining
COMPANY. no securities Of any kind have
heen issued TO provide additional money |
with tho exception Of notes for $4,000 900
given 10 w. a. Clark OIL June I. 1910, |
In payment for the mining properties |
trs nsfered 10 the Anaconda Copper Min |
Ing company. and the $4,000 900 IN two
wear per cent notes, issued April ! OF |
this year. IN provide means for paving !
Tor the stocks OF the United Metals Sell !
Ing company.
tI,a .f,,., Iio,,
psnv there has been charged off against |
earnings and surplus by tho subsidiary |
companies. whose properties arc now In |
the Anaconda Copper Mining company:
For depreciation and disman-
For depletion of coal mines. siI$43 !
For depletion of timber lands. G5i.35e |
Tho plants and equipment OF the |
properties of the subsidiary companies |
have been maintained 10 the point OF fun |
efficiency regardless OF expenditure. and !
That policy has been pursued riGidlv since |
.he organization Of YOUR company Tho /
capacity and value OF the plants and |
equipment are greater than AT any time
in The history OF vour company. not
withstandinC the largo amount that has
been written Off In depreciation
Copper Future Bright
The market price Of copper has been
low during the 1scal year and tho amount
9'l' ~ 'i.s Su'HlHldI companies nJS not
equalod their reduction although during
1910 production was smaller than in tho
previous wear. as Your directors were or
the opinion that IL was not good bust
ness policy 10 produce To The capacity
Of the works while the prices obtainable
for copper were low and while there
was A considerable stock OF copper as tho
result ol the accumulation during the
dull business period following the year
1907.
'"The consumption of copper has been
increasing steadily. especially since l9oS !
but The Increase has been much greater
IN Europe than at home. The worlds
stock of copper reported by the Copper
Producers association for this country, |