New-York tribune., 1918-05-01
Anaconda Copper
Reports Decline
In 1917 Profits
Mining Company Earned
SAT- a Share, Compared
With $21.85 in 1916

On the largest turnover in it's his
tory, yielding total revenues of $685.
954,23o, compared with $3.50, $40 ,688 in
1916, the Anaconda Copper Mining
Company, according to the annual re-
port, issued to stockholders yesterday,
earned balance available for div
idends of $34,333,751, a decrease of
$16,494,622 compared with 1916. This
was equivalent to $1471 a share on
the 1881 ,250 shares of stock outstand-
ing, compared with $2185 in 1915 and
$7126 in 1915.
John u. Ryan, president Of the COM
pany, attributes the decline in earn
lngs to a number of factors, princi-
pally reduced production resulting
from labor troubles. DELAY in the buv-
ing of copper in anticipation of gov
ernment price fixing was also in part
responsible for the falling off in net
income. "Following the period of con-
structlon, which had practically been
completed in the year 1916" says Mr..
Ryan, the company entered the year
l9l7 upon basis of maximum pro-
duction in all departments. This con-
tlnued without interruption until the
month Of June, when, through the ac-
tlvlty OF the l. w. w., which had begun
systematic campaign to interfere
with and prevent the production of
metals essential for the government in
the nrOSQcntiOp of +bo ,,,or
labor disturbances, strikes and walk
outs occurred which greatly interfered
with the operations of the company.
and which lasted through the summer
and we'll into the fall of the wear. AS
a result, production was decreased and,
the company did not again attain ap-
proxlmately maximum output until the
close Of the year. The result of these
dlfilcultles was not alone to diminish,
very considerably, the output of metals
Tor the year, but also to add to the in
creased cost of production.
Buying Suspended
"The high prices which prevailed for
metals at the close of 1916 were further
increased during the first six months
Of the year 1917 Following this pc
riod, the announced policy of the gov
ernment to fix the price of metals most
urgently needed for munitions manu-
facture caused a suspension of buying
for future requirements. There was a
consequent decline in prices, which
were still comparatively high, until
finally, in September. through agree
Board and the copper producers, the
price for copper was fixed at % II cents
pound, and subsequently maximum
prices were established for some of the
other metals.
"Since the establishment of fixed
price the entire copper output has been
distributed for the government through
committee representing the pro-
ducers, upon an ALLEGATION of orders
approved by the government. Under
the plan adopted, the entire production
has been put at the disposal of the
government and it's allies. The extraor-
dlnary demand for war purposes has
been promptly met, and every effort
has been made to provide for other
requirements in the order of their i'm
portance, with the result that, while
there has been a shortage of copper
production, no serious inconvenience
has been felt"
The copper reduction works of the
Anaconda company treated 4,267,854
tons of ore in 1917, compared with S.
1852 tons in 1916. At the Anaconda
property itself 238,413,O31 pounds of
fine copper were produced, 8,5O2,O7O
ounces of silver and 54,396 ounces of
gold. This compared with 287,O82,O ,O79
pounds of copper in 1915, 1O,624OOO
ounces of silver and 1888 ounces of
gold. At the Great Falls plant there
was produced 15,095,301 pounds Of
copper. compared with 44,811,194
ho nj
Anaconda and Great Falls treated dur
ing the year 326,479 tons of ore, COM
pared with 196680 tons in 1916.
Years Investments
During the year the company added
to its investments in securities Of
other companies and by the purchase
OF Liberty Loan bonds, expending $9,-
066,389 for the investment account.
This amount includes the cost Of stock
issued during the year by the South
American companies to reimburse the
Anaconda for advances made. The
principal purchases of other stock
were as follows: 28,74o shares of
Butte Copper and Zine Company, So
800 shares of Inspiration Consolidated
Copper Company, 2,7OO shares Of
Greene-Cananea Copper Company; U.
5. government 3A per cent gold bonds,
first Liberty Loan, $922,5OO; U. S. gov
eernment per cent gold bonds, second
Liberty Loan, $3,62S,10O Of the sub
scrlption to the / per cent bonds, ST.
$4,000 remained unpaid as of Decem.
Der 81, 1917.
The report devotes much space to
description of the development work
done during the year on the Chilean
properties of the Anaconda.
The balance sheet as of December
81 shows profit and loss surplus of
$62,913,989, compared with $48,3s5, 1862
at the end Of 1915 Accounts receiv-
able and cash on December 81, last.
amounted to S27O19,819, compared
with $32,065.S54 at the close of the
preceding year.