New-York tribune., 1921-02-10
Export
Bonds Sold to
Finance Trade
Gold Notes Paying 8 Per
Cent, With Short Maturi-
ties, Amount TO $40, ,OOO.-
600: Offered Near Par
Guaranteed by Producers
Agreement ON Plan Removes
Large Surplus Stocks
Overhanging Mark e {

Plans for financing the sale 20 for.
eiyn consumers of A00,000,000 pounds
of American copper were completed
yesterday at meeting of members OF
the Copper Export Association, lnc''
and bankers.
A syndicate headed by the Guaranty
Company Of New York and the Nation
al City Company have arranged TO
offer $40,000,00 Copper Export Asso-,
citation, Inc, per cent secured gold
notes secured by the copper set aside
for export on the basis Of 10 cents NJ
pound. The notes are guaranteed by
the producing companies in maturltles
of So, ,000, 900 one-year notes, Slo,ouo'ooo
two-year notes. $12,000,00O three~year
notes and S12 900 four-year notes
The companies participating IN the
plan and the per cent OF responsf~
bility assumed are the Phelps, Dodge
Corporation, 100; American Smelling
and Refining Company, s; Calumet and
Hecla Mining Company, s; Utah Cop
per Company, 50; Chile Exploration
Company, 7.5S: Kennecott Copper Cor
poration, 506; Braden Copper Mines
Company, sos; Ray Consolidated Cop
per Company, 4; Chino Copper Com
pany, 8.66; Nevada Consolidated Cop
per Company, 4.45; United Verde Cop
per Company, 5; Anaconda Copper
Mining Company, 1925; Inspiration
Consolidated Copper Company, 8,46;
Greene Cananea Copper Company,
ASS; New Cornelia Copper Company,
4.o7; North Butte Mining Con- pany,
t.75, ard Utah Consolidated Copper
Company, "a. There remains to be al
lotted 2.7 per cent.
These companies guarantee all but
1,0S0,0 900 of the entire issue Of notes.
The remainder, it was announced by
the bankers, will be allotted later.
The Copper Export Association has
purchased to resell in foreign markets
the copper back of the notes. The re-
fined copper pledged at current market
rices for the metal has g value Of
approximately $4,000, 900. Copper may
: e withdrawn " der the trust agree
nent only on Th 71nent to the er'stee
cf 1917 cents III ash or notes a pound
# copper with avn. The present
market price is about 13& cents a
2ound.
The one-year n,,, .s will be offered at
par, the two-yea notes at 99A, the
three-year notes at 1914 and the four
year notes at 80.
John D. f N, pr d, mt of the Cop
per Export Associat !, issued the fol-
lowing statement COZ cerning the plan
for financing the sal abroad Of 400,-
GUU-OOO pOGnUS VI SUI NOPpSl'
THE sale of 400 ,0ri,000 pounds Of
copper by producers, members of the
Copper Export Association, and the
financing of the amount advanced by
the Export Association to the pro-
ducers on the purchase, will assign to
he export market part of the sur
plus stocks of refined copper that &C
cumulated as q result of the sudden
ending of the war and remains in the
stocks Of the producing companies on
account of the inability of European
consumers to take their usual re-
quirements.
"The maturities Of the obligations
issued against this copper in one, two,
three and four years will give ample
time in which to market this amount
in an orderly way in the export trade
and relieve the Rroducers of the fnan-
cial burden of carrying it and the
necessity of pressing it for sale.
/ "The 400,000,000 pounds is only
about three-fourths of the export
trade done by this country last year
and if marketed over q reasonable
period will be easily absorbed. The
/ present rate of production, being below
the rate deliveries of copper in 1919
and 1920, should not result in any &C
/ cumulation."