The Washington times., 1921-12-23

| nc pO06lDl0 consequences
of the new era Of mergers now dawn
ing were discussed in a recent issue,
as were also the personalities of the
two industrial giants connected with
this gigantic deal, John d. Ryan. head
| of the Anaconda Copper Mining Com
pany, and Charles f. BROKER, the
veteran head Of the American Brass
| Company.
I was fortunate in being able to pre-
vail upon Mr.. Ryan, who il the fore
most copper figure in the world, to
present to the public the reasons
which influenced him to bring about
this colossal consolidation. He does
so, very frankly and fully, in this au-
thorized interview.
Incidentally, Mr.. Ryan states that
the copper consumption of the world
today is at a rate equal to that of the
best pre-war year, 1913, and that the
prospects for 1922 are very encourag-
ing.
In reply to my questions, Mr.. Ryan
said:
IF Anaconda had controlled the
American Brass Company during the
last two years a great deal OF idleness
and a great deal Of hardship could
have been avoided. Instead of having
| to close its mines, Anaconda could
| have produced 100000 pounds of
| copper and 100000 pounds of zinc
month by supplying only the Ameri-
| can Brass Company with the metals
! 1t manufactured and furnishing it's
own share of the exports. In this
way communities could have been kept
kept going on a more level keel, to the
| advantage of ALL"
Might not reasonable control Of the
copper industry lead to restricted pro-
duction and too high prices?" 1 sug-
gested.
Reducing Cost.
| mot necessarily; no." replied Mr..
Ryan. Everybody who works q
copper mine has to produce a rea-
sonable amount of copper to get his
costs down to reasonable basis.
And he has to have reasonable costs
in order to get a reasonable profit,
or even to be able to borrow the
money necessary to continue opera
tons during bad times. How much
| better II would surely be II there
was sufficient control OF the copper
| business 30 that, instead Of throwing
the whole industry out of gear, and
putting employees out Of work, with
| out wages, without anything but
charity, you could keep on employing
60 or rs per cent Of your people all
through lean periods. even though
| considerable stocks had to be accu-
INFLATED, because the costs having
been reasonable and prices main
tanned at reasonable level, such
| stocks could be financed and carried
on reasonable terms to tide over such
| times, for example, as we had dur
ing the first half of this year. There
| was then no market that would take
anything like even a reasonable pro-
duction. The mines all over the
country aggravated the situation they
then found themselves In, as they
| had al been producing more than
could be absorbed ever since the
great accumulation of metal due to
the sudden ending Of the war.
This bitter experience of the cop
per industry was an aftermath Of the
war. The copper business. like many
others, had been fostered by war de-
mands and high prices-although 1t
should be noted prices were higher
before the United States went into
the war than after we went in. I'm
der this wholly abnormal and artificial
stimulus, copper production reached
such volume that, when the demand
suddenly ceased, surplus supplies
were piled up before anybody could
stop the output. Remember that
there is always three or four or five
months output in process of being
prepared for the market; that il,
between the time the ore is dug and
the refined copper is ready for the
market.
Production.
After struggling for two years,
the copper companies, through sheer
force of necessity, had to throw their
people out Of employment. A point
had been reached where, not only
was it impossible to get rid Of pro-
6uction, but 1t was not possible to
obtain financing to keep plants going
any longer.
Now, IL there had been reason
able control, and the cure had been
started in the spring Of 1919 instead
| of in the spring of 1921 disaster to
| employees, stockholders and communi
| ties could have been avoided and
tens Of thousands would not have
| been thrown entirely out Of employ
ment at any one time.
"It is not to the interest of this
country, In my judgment, that the
copper industry should continue in
| the future to be subjected to the
violent ups and downs, with the con-
sequent widespread unemployment
and heavy losses, such as we have