New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-03
Anaconda BOrrOws
S25, 100000 for
5. American Mines
Six Per Cent Ten-Year Sc
cured Gold Bonds Offered
al 98 Ia - Ryan Fore
sees Copper Prosperity

An Offering of $50 900 900 of ten-year
secured per cent cold bonds of the
Anaconda Copper Company, the largest
producer of the metal in the world, will
be made this morning by syndicate
headed by the Guaranty Trust Company
and the National City Company. Al
though the company has authorized an
issue of $50,000,000, only half that
amount, comprising series A, will be
placed on the market to-day at 98A. to
yield Ga per cent.
THE proceeds of the Series A bonds
are to be used according to John d.
Ryan, chairman of the Board of the
Anaconda Company, toward the equip
ment of the properties Of the Andes
Copper Mining Company and the San
tlago Mining Company, and to replace
IN current account part of tie earnings
which have been heretofore invested"
Regarding the prospects of the cop
per trade, Mr.. Ryan said: at is diff
cult to predict the immediate prospects
OF the copper business, but there is no
sound reason for pessimism in regard
to 1t, after a few months of necessary
adjustment from q war to peace basis
have elapsed. The conduct of the bust
ness during the war was a notable in
dustrlal achievement and there can be
no doubr that as soon as industry gen
orally can readjust itself to the pur-
SUITS OF peace, an era of great and
testing prosperity awaits the copper
busincss.'
In letter to stockholders. Mr. Ryan
further explained the purpose of the
new bond issue, saying: "The com
pany has expended. through it's South
American subsidiaries, to September 80.
1913, the sum of $15,234.914 Develop
ment work on these properties is being
pushed as expeitously as possible.
The Andes Copper Mining Company
has completed it's wharves and ware
houses at Barquito, its Pasihs Port,
has constructed an aggregate of fifty
eight miles of main line railroad, is
working on the section of railway
from mill site to mine, distance of
So miles Office buildings and houses
for the accommodation of employees
are being rapidly completed; tenn
porary power plant, transmission line
from coast to mine, water supply line,
etc, are under construction, and def
mite plans for permanent plant and
equipment are now in course of pre-
paration..
ut is estimated that in addition to
the amounts which have been expended
as above there viii be required in
order to fully complete the equipment
Yof these properties for an annual pro-
duction of 100000 900 pounds, an add
tional sum Of approximately $50 ,000,-
/ IA
not yet been fully explored, but suffi-
cient ore has been developed to insure,
upon q basis of cost of cents per
pound 70 copper, which is believed to
be liberal, and a price of Is cents
pound, which is conservative, aggre
gate net earnings in excess Of S10O 900
600 within a period of twelve years
after reaching the output for which
Jlant and equipment arc now being
designed. Production will, it is est-
mated reach the above amount of 49,
c0O,oO0 pounds per annum within three
years after orders for equipment have
been placed, which will be done as
soon as shipping facilities have been
ass ured. The minimum value OF these
properties may be indicated in terms
of present worth, which it is calcu-
lated, after making provision for the
complete amortization of all capital re
qaQcmcnts, is as Of January |, 1919,
IN excess OF $G0.00o,000 net, taking
only developed ore into consideration"
Balance of Earnings
Mr.. Ryan showed that from January
/, 1913, to September 80, 1918, the ex-
cess Of earnings over dividends de-
clared amounted TO SS2,373.1SO and
added that the fixed assets of the COM
pany SHOW gain Of $50, 100 ,457, not in
Guiding expenditures on South Ameri-
can properties aggrcgating SIS ,234,914.
He asserted further that under condi- |
lions of cost prevailing during the
years 1911 10 1918, inclusive, and pre-
war prices for metals the additions to
plants and improvements in practice
add approximately $4,000 900 year to
the net earnings OF The company on
copper business alone. Current assets
have increased S44 500 600, he said to
total on September 80 OF S73 900 900, /
and liabilities to SAL 800 900
The decision to finance the South
American development in this way was
made tor Two reasons, the chairman of
the board 'oXplancd, thus:
First Because it, was deemed more
advisable to raise the necessary funds
by loan which can be largely repaid
from the earnings of the South Ameri