The enterprise., 1916-10-05
GIGANTIC COPPER PURCHASE
SMELLS A. e. N. EARNINGS
Great Britain Contracts for $125,OOO,OOO
Worth of Red Metal; Total Is Fourth
u. S. Product for Year.

Butte.-Do the people Of Montana
realize what is meant bv the gigantic
purchase of copper made by the Brit.
ism government?
Through j. P. Morgan & Co., its
purchasing agent, 44s,O00,0O0 pounds
OF copper was contracted for by Great
Britain S war department. This is an
amount equal to one-quarter of the
entire copper supply produced by
American mines during 1915.
This purchase, involving 1926, ,OOO,-
coo, is the largest transaction in the
history of the American copper indus
try. The price paid was slightly low
er than 27 cents per pound.
The Anaconda Copper Mining
company, through it's selling agents,
figured largely in the purchase. This
assures the operation of the Butte
mines to capacity next year, regard
less OF whatever development in an
industrial way may occur.
1t is reported from New York that
the gross earnings of the Anaconda
Copper Mining company for the IS
months up to June l, 1917, will be ap-
proximately $54,181 ,250. After the
payment of the 1917 half years divi-
dends at the rate of So per share
quarterly, amounting to $9,325, 900,
and allowing for the retirement of
$16,OO0,000 notes which fall due next
March, the result should be net earn
ings Of about $2S,s5O,00O for the 1S
months from January ], 1916 to June
80, 1917.
This huge sum would be enough in
itself to take care of regular quarter
ly dividends at the rate of So per
share thereafter up to June 30, 1918,
without earning another dollar in the
interim.
Of course profits cannot be expected
to continue at anything like the cur
rent rate indefinitely, but on the 9TH
er hand the huge surplus which Ana
conda has built up and is adding to
daily will serve to pay many divi-
dend in the years that are to come
when metal prices recede from their
high level established by the war.
Largest Previous Sale.
The biggest sale preceding this was
last April, when the same interests
sold in England, France and Italy
about 150,000,0OO pounds.
The negotiations were handled in
behalf of the copper men by John D.
Ryan, president Of the Anaconda Cop
per company, and Joseph Clendenin,
manager of sales for the American
smelling and refining company.
The deal was put through after
more than a month of "conversa-
tions:" in the course of which the
decision was practically made at one
time, according to information obtain
ed in copper circles, to split up the
business into several great parcels
whose total would have been the same
as the order now covers.
The matter of price and also of
refining capacity caused debate over
the form the sale should take. The
producers, it was said, were reluctant
to contract ahead for so vast a sup
ply because they desired to give do
nestle producers all possible protec-
ton In market stirred by the de-
mand of the entire outside world. The
prospective buyers urged the signing
OF the contract because they wanted
to take advantage of current prices in
covering their requirements over the
first half OF 1917. In the end the re-
finers, taking count of unprecedented
activities at the mine and refineries,