The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-03
ANACONDA ISSUES
$25,OOO,OOO BOND
Mining Company's SECURITIES
Will Run for Ten Years at
6 Per Cent. Interest.
PART OF S5O,OOO,O0O LOT
Will Be Used for Equipment
of South American Proper
ties. Says Ryan.

The National City Bank and the Qua
anty Trust Company, at the head OF
syndicate of bankers, have purcha..g
ami will offer for subscription to-day a.
issue Of s25000.0o0 ten year secured
gold honda of the Anaconda Copper Mr-
ing Company bearing interest at the rat,
OF s per cent This issue will be know
as Series 4 ana represents pert o' Z
total authorized issue Of $4,000. 0on.
The bonds are to be offered for suh-
scrlbtion subject to allotment at 9Si,
and interest, TO yield nearly II per cen.
In n letter to the shareholders of tAs
Anaconda company Chairman John =.
Ryan sets forth that the proceeds OF tho
issue will be used for the equipment 81
the South American properties OF tho
Anaconda company. namely. the Andes
Copper Mining Company and the San
tiagc Mining Company, and to replace in
current account IL part OF the earnings
whcn have been invested by the Ar
ccrda company.
In explaining why this method -
financing was most desirable now Chair
man Ryan's letter points out
"First.-Because It was deemed r~o''
advisable to raise the necessary fu'd1
by a loan, which can be largely repaid
from the earnings OF these pro0ertia'
when equipped than to add permanent"
to the capitalization of the company.
Observation-Disclosures to continue 10 flna0
from earnings the requirements me
toned properly chareeahle to cap,t-l
account, would impose an undue burd, n
upon present shareholders"
According to the syndicate which -
promoting the issue. unusually stro'ir
ga feguards have been provided by ths
Anaconda management for the issue.
The company has agreed that 1t will npl
mortgage or pledge any of its fixed as
sets without providing prior security
for the bonds and for their payment IN
priority TO all other obligations secured
by such mortgage or pledge. and W |
not init constituent companies 70 IL
do The agreement also provides tina
the earned surplus Of the company sha
he maintained always at an amount -
least equal to the amount Of the ou,-
standing bonds.
In his letter to the heads of the synG.-
cate Chairman Ryan declares that the
bonds constitute the only funded debt "
the company. He sets forth that OF
September 80, 1918. the company's cur
rent assets aggregated $13,OoO,Ooo, ~
increase of s44,5o0.o00 from January :,
1915. while the current liabilities t.
tailed $4I.t0O.0oo. an increase OF ~
30O. 900 From January !, 1918, TO Sen
tcnber 90. 1918, the letter declares. &
company and its constituent comran'''
earned. outside of interest aud all tax
but before depreciation charges, an H'.
rual average Of more than S"S.7oo.ono.
or much more than the face amount az
the bonds about TO be issued.
The bonds will he dated January &,
1919. and mature on January /, 49,.
Interest will be payable s"mi-annua u"
IN January and July and he -
coipon form OF $1,000 each. Frlncln'l
and interest viii be payable without d.
Gl,-.ion for any taxes, except inheritar ;
taxes and so much Of any Federal IT,
come taxes a. may he in excess OF " =
cent of such interest. The bonds 20 -
.ssuod to-day will not ho subject to 70
denrtiun prior TO naturit.. The balan'H
Of the authorized iSsu" will bc offer
from time, to time. as determined by {
company.
IN his statement 20 The stockholde
Chairman Ryan discloses that the to-
earnings OF the company from Janua''
I. 1919. to September 80. 1918, wera
Sl65. $3.50 $50. and dividends declared d.
.nC the same period ss@.GS7,5o0. leavlrS
balance of earnings outside Of d'
Iends Of sS3.313.4SO. Mr.. Ryan po!r'
cut that under conditions Of cost prs
,ailiny durtug the years 1911 10 u
End pre-wor prices Tor metals, tho add
, tions to plants and improvements I'D
approximately IS 900, 900 a year 10 : ,
ret earnings OF the company on tho cor-
| per business alonc.