New-York tribune., 1921-03-30
Copper Companies
Quit Operations
To Aid Recovery
Anaconda, Utah, Ray Consol-
idated, Chino and Nevada
Concerns Decide 10 Sus-
pend Until Trade Improves

pcuu CHsii ATaue improves
The porphyry group of copper COM
uanies and the Anaconda Copper Min
ing Company Yesterday announced the
suspension of production at their
mines because OF the current lack Of
demand for the metal and the large
accumulated surplus on hand. In the
porphyry group are the Utah, Raw.
Chino and Nevada Consolidated copper
companies.
Action by these companies makes a
virtual shutdown of practically all the
important copper mines of the country
with the exception of Calupet and
Hecla, which has as yet made no for
nal announcement. Announcement
vas rade last week of shutdowns by
the Phelps, Dodge properties, Inspira-
ton Consolidated, Greene Cananea
aad Shattuck and Arizona.
JOHN d. Ryan, chairman Of the Ana
ccn6a board of directors, said that the
decision to temporarily suspend the
production OF copper at the company's
mines was reached ''only after de-
lberate consideration compelled the
conclusion that under existing condi-
tons no other course was advisable" :"
Charles Hayden, speaking for the
porphyries, declared that q continua-
ton Of production, which cannot be
sold st the cost would only lead later
ia a Generalization of the industry, a
detriment to the shareholders and ul-
. +n,s Loo
to employees. He expressed the be-
lief that the rebuilding of commercial
industry both in this country and
abroad will, with the cessation of pro-
duction, not require a very long period
Of shutdown.
In Z statement to Anaconda share
holders explaining the action of the
directors Mr.. Ryan reviewed the con-
dtions under which production has
been maintained by the company. He
5. said in part:
AT the close of the war an agree
ment existed between the government
and the copper producers. which fixed
the price Of copper and prescribed
the working conditions under which it
should be produced to the end of 1918.
Immediately after the arnistice, at
the request Of the government, it was
tnued at fke then current rate, until
tie end of the year.
After January /, 1919, production
Vas cuytaiied in February. wages were
reduced by agreement among the cop
per producers, their employees and the
Federal Department of Labor approx
mateiy IS per cent. Later, in July,
living costs having continued to in
t,ease and the metal markets having
improved, the wage scale was restored
and continued in effect until January,
1921, when a reduction of approx
mately ! 3 per cent was made.
During 1918, while the export de-
nand was limited, there was large
lomestic consumption of copper. To-
vard the end of the year good buy
ing movement both domestic and for
sen occurred, which carried over into
1929, and apparently justified the ex-
pectation that business for the year
would show satisfactory rate of con-
sumption.
"After January 1, 1920, and during
the first eight months stocks showed
a satisfactory decline, when on ac-
count OF the general cessation of busi-
ness activity in this country, the in
austrial collapse in the Orient and
the general unsatisfactory business
and political situation in Europe. the
trade was adversely affected, and not
outstanding the general curtailment
throughout the industry, with but few
exceptions, to approximately 40 per
cent of normal production, stocks be-
gan to increase and have steadily &C.
spmulated."
In this connection it was learned
yesterday that the total surplus of
unsold copper now in the United States
SIS approximately 900,000,000 pounds
The average production of the Ana
eonda mines for 1916. 1917 and 1913
sqaaled 292, ,752,406 pounds. The aver
age for 1919 and 1920 was 148, ,120,99S
pounds.
This decrease in production, with
the enormous increase in freight rates
and the cost of fuel and other sup
Plies" Mr.. Ryan pointed out, "has
reaulted in an excessive cost of pro-
duction. while at the same time the
price has decreased to beneath the
level Of pre-war prices, resulting in
serious loss on metal sold. Under
these circumstances, there being no
Improvement in sight, the stock of
metals carried being as large as your
directors feel warranted in having the
company finance, the loss on metals
aoid being greater than can be long
sustained, it is believed that in order
10 conserve the property of the COM
pany and prevent the depletion of its
9se reserve, the situation had reached
stae point where the complete suspen-
son Of production is necessary for
'as present"
s Following Yesterdays announcements
.ey the Anaconda and the porphyrles
sae price of copper advanced from 12A
ssots 10 13 cents pound.
SALT LAKE CITY, Utah. March 20.
-About fifteen hundred men will be |
scuected by the closing of the Utah |
.,rsopper Company's mine at Bingham,
ran, and the mill at Arthur, r. C. |
usmmell general manager of the COM
psny. said to-day.
4 BUTTE, Mont, March 29.-Closing
a.s sae mines OF the Anaconda Copper !
;ssa,.l'ng Company will throw out of en-
.rss?yment $500 to 5000 miners, it was
$50 at the local Offices of the company. /
lotion Factors Ask Receiver
i AEMPHIS, Tenn, March 29.--W. C. /
srasgnt Co., cotton factors, filed a
ss;aalntary ~ petition in the Federal Dis
49, ss;a Court here to-day asking the APP
sHnsment sSsament OF a receiver. The petition
ssS ,sS"s assets totaling s1,595, ,596.os
- i'aoillties aggregating $s5S, 1860.
wrgan Companies Combine