New-York tribune., 1921-03-16
American Smelling
Earns 4 Per Cent
On Common Stock
Company Carries Its Metal
Stock at Cost Prices
in Annual Report; Cash
and Securities Decline

The American Smelling and Refining
company earned its 4 per cent divi-
,.nds on Seo9as. eco Of common stock
:, full in 1899 after the payment of
,,,e-est charges and 7 per cent on
~-sfe-red stock. 1t carried its metal
ss.o,ks on its balance sheet at cost as
"a PREVIOUS years.
:" The company came through the per-
ia ~ resdiustment without doing any
.sw .v financing and without greatly in
.~sss;nc its current liabilities. Ac-
..rnts. notes, wages, etc. payable at
W. sno Of 1920 amounted to S2o.246,-
:I IA sn increase of S927.567 fver the
s,r, s..,rrr,esponding account in 1919. Cash
hand amounted to S4.157,75o, a de-
~ '-.sss o. S4I5,4 4S6, and Liberty bonds
s..a ...sisa SS.aS9. $50. DECREASE of
.Sef0,s50. Metal stocks are carried
s.5sr current assets at $53,Sl4,012. an
-.rx -.rssse of s5.o5- .90S The cost price
~ .s.Sese metals : Understood to repre-
Nv. in part pr~<war prices. 1t is
-. unusual to Larry this item at cost.
.1.,oncb msgy companies carry 1t at
s:.her rost price or market prlce,
4ver is the lower. The Ameri-
Wv gmelting and Refining practice for
TO- .ss nast fifteen years or more has been
.AIcsrrv il at cost and that practice
z.s been followed this year.
The American Smelling and Refining
c.-narv has for the last nine years
.,.ad not only asa refining company,
~ also metal sales agent. It's agree
-s-rs with It's mining companies pro-
10 for the purchase OF copper and
.:lrsr TO the full extent OF the ofer-
s.,f ~ the producer at price hxed IN
.a s case Of copper by the Mining Trade
Ia,rnal. ana In the case o. silver py
s.a,her outside independent agency.
=. selling agency. the American
Setting and Reaninfi Company charged
nissior 10 such companies as the
.onT ny porphyr.es and the 0erro oe
pssco. The porphyrles,-tne ray Noa-
.oTdated. Chino. Utah ana Nesau~
.onper compaAies-cancelleo tne.n
.,rrsereuts with the American Com pahy
.ss the Cerro de Pasco acqulrea an
...srest in the American Metal toni-
.,.v which undertook to hahale ~
..~.5ut This reduced the tonnage u
10 handled by the American company
..' oren+ M about so per cent.
s. ssenC eoreenaent provided that
i. slls Ansr Ss Company should pT0ratss Pr ate
.
~r .~.rr,arIesSsor which il acted as agent,
On ii5'-r pa.,,e- - own copper On q rising
A'.-e '-re. gi+h demand exceeding supply
na.Ass, orls5 ont satisfactorily. AS
~ 80 ~ fact. the agency business OF
-e.if wss profitable The trouble was
~ a. = tine OF falling prices, with
~ SAMMY greatly exceeding demand
s A~erlcan company was forced oy
- ,rsds agreements 10 take all cop
~ otTered 10 it by its own customers,
s.- * the producing companies, ano
ssd i ID we're not 10 lose money IN
,r,s transaction. to make compara-
.gslv auics turnover. 1t could not
.=ora -o risk holding copper even
Tssn price had 10 be cut TO move
.,orts On the other hand, the porphyry
..rnanies wanted TO maintain the
.y;cs even al the expense OF having
!, carry copDer stocks over long pc
~ ne result was that the American
.anranv IVES in dual position IN
rb;fh lis interests as rehner were
ar variance with its interests and IT'S
,jsrts' interests as q selling agency.
Tss hoard Of directors in November
sa0 voted TO withdraw completely
/ ION tn copper agency business. o
During the four years 1919 to l9Ie,
,c.usire. the American Smelling and
Refining Company made proht out OF
Is agency business. On the other
aand. this profit in four years was
~ore than offset by losses IN the pre-,
7.ous Years Of low copper prices, ana
T. was thought hy the management ina,
a continuance Of the business woulc
-esult in loss rather than gain IN the
rsxt few years. In the profits shown
il 1890 are included profits from the
sssncy business, and though TINS
anoun. is not shown separately, 1t Is
{ Understood to he paratively SINAI
50 that the difference IN the 1921 m
come account VIII not be large enough
l 70 be oi Importance.
In concluding his report Simon Gug-
l ,snheim, the president, says: ne
| condition Of all mines and plants OF
l the COMPANY IS very satisfactory. the
l personnel of the staff has never been
surpassed for ability and loyalty, and
Four companies are in excellent shape
e undertake the large volume OF
business which must necessarily ultl-
J na.ely follow the present prostratlon
Of the metal Industry
The report made no reference TO the
'eorts Of Karl Eilers, former di-
rector to dslodge the present man
sgement