The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-01-06
ElLERS v. eUGGENHEIM
CONTROL OF A. S. e. R. co.
Continued from Page 81

Continued from Page 81
fined copper. This accumulation was
not due to any poncy OF Withholding
copper from sale, as the company had
used its best efforts to sell all the
copper it could, but was due. first TO
lack of demand because of the fact
that all consumers of copper were
overstocked; second, to the fact that
during the war production was great
~ stimulated because of the war de-
mand and a large amount of copper
ore came through after the signing of
the armistice i'm a volume much
larger than during normal conditions;
THIRD. to the fact that labor and rail-
road conditions during the war and
after the signing Of the armistice were
such as to lengthen the period be-
tween the delivery of ore TO the com
pany and the arrival of the refined
copper at tidewater; and, fourth, to
the fact that the company was not
free to sell its own copper independ-
entity of the copper of the companies
AtA " NUN IT, AENNu us ntIAInE agent
since. under the selling agency agree
ments, the company's own copper had
to be sold pro rata with that of all of
the companies for whom the company
acted as selling agent and the aggre-
gate amount which thus had to be
sold was much greater than the mar
ket has been able to absorb during the
Of the armistice. All of these were
conditions which were due to the alb
normal times and for which the Off
GERS of the company were i'm no way
responsible The conditions expert
enced in these abnormal periods by
the company have been common
among companies in the same bust
ness.
The officers and directors of the
company have from time to time dur
ing the past two years made efforts TO
work out modification of the selling
agency contracts which would leave
the company the profits from it's com
missions as selling agent in normal
periods and at the same time leave it
free to sell its own copper independ-
entity during times of abnormal condi-
tons but, although the greatest eff
forts were made 10y the company's Of
fcers to that end, this finally appeared
not to be practicable, and as the end
OF the abnormal conditions are not
yet in sight it was determined by the
board of directors during the month of
November 1920. to terminate the sell
ing agency which was accordingly
done.
I'm other words. the company's sell
ing agency was originally attractive
and profitable to it, and during nor
NAL times resulted i'm large net profits
accrung from the selling commission
The unprecedented abnormal condi-
tions which arose during the war and
again since the signing Of the armis-
tice have created a situation which
could not have been foreseen. and the
result of which has been to offset quo
rational losses against the profits thus
accruing. and no one can now foresee
when normal conditions i'm the indus
try will return The companys board
or directors in order to prevent fur
Their losses from this source. deemed it
to the advantage of the company to
terminate the selling agency. so that
hereafter the company will sell mere
ly its own copper, unrestricted by OBJ
legations to sell the copper of any
other company
The various changes in the board
of directors and in the officers of the
company referred TO in the latter
part of the seventh paragraph of the
petition took place, but the reasons
therefor and the differences therefrom
as stated in the petition. are wholly
imaginative q"