The New York herald., 1921-02-10
COPPER NOTES OF
S4O,OOO,OOO SOLD
New Issue Is Secured by Pledge
of 4O0,0OO,00O Tons of
Refined Metal.

The Copper Export Association, Inc,
consummated the sale to a banking
syndicate yesterday of 100000 of one
to four year s per cent secured gold
notes and the syndicate will open at.l0
A. NJ. to-day books for subscription to
the new offering at par for s6,OOo.ooo of
the one year notes. at 99s4 for $40, 100000
of the two year notes, at 99A for
! sl2, 900, 900 of the three year notes and at
80 for ST.. 100000 of the four year notes.
Under the leadership of the National
City Company and the Guaranty Trust
Company, which purchased the notes. Il
countrywide syndicate was being formed
last night and a wide distribution is
! hoped for.
The new notes are secured by the
pledge of 600 pounds of refined
copper. and the sums OF notes repre-
sented by the COPPER will be guaranteed
by copper producing companies in vari-
Gus proportions. dependent on partici-
patton in the financing. The new notes
will be dated February 10 and be re-
tirable at 104 for the first year. 1903 for
the second year. 102 for the third year
| and l0l for the fourth year. The copper
! is to be trusteed with the Guaranty
| Trust Company as trustee. In every
sale of copper for export a third of the
amount comprised in the sale will be
drawn from the trusteed copper at 121s
cents a pound and the funds paid over
to the trustee for use in the redemption
! of the notes.
The names OF the companies, which
guaranteed sums involved in the fnanc-
ing in proportion to their participation
are as follows: Phelps Dodge, American
! Smelling, Calumet and Hecla, Utah.
| Chile Exploration, Kennecott, Braden.
Ray Consolidated, Chino. Nevada Con-
solidated, United, Verde Anaconda, In
| spiration Consolidated, Greene Cananea,
New Cornelia, North Butte and Utah
Consolidated. Discussing the new financ-
ing from the copper producers point of
view. John ID. Ryan, president of the
association. and also president of the
Anaconda Copper Mining Company, said
! in part:
The maturities OF the obligations is
sued against this copper in one, two
three and four years will give ample
time in which to market the amount
\ in an orderly way in the export trade
and relieve the producers of the finan-
cial burden of carrying it and the neces-
sity of pressing il for sale
The 400.000,000 pounds is only about
! three -fourths of the export trade done
by this country last year and If mar
keted over a reasonable period will be
easily absorbed The present rate Of
production. being below the rate or de-
liveries of copper in 1919 and 1920,
should not result in any accumulation"
In . letter to the bankers Mr.. Ryan
said: Copper Export Association, Inc,
organized as a Delaware corporation in
December. 1918. and qualified under the
Webb export trade act to engage in the
copper export trade. is the exclusive
medium for export sales OF copper by
companies which in the aggregate rep
resent about IS per cent. of the total
copper production of the United States.
'It has purchased to resell in foreign
markets 400.000.000 pounds Of refined
copper. and will pledge with the trustee
as security for these $40,000.000 per
cent. secured gold notes receipts of re-
fining companies for all of the said cop
per with the exception of not exceeding
3 y per cent, for which the Calumet and
Hecla Mining Company will issue it's
own receipts The refined copper pledged
will have. at present market prices G3
cents per pound), an indicated value of
S52 100000, or a margin of 80 per cent.
in excess of the principal amount of the
note issue The average market price of
refined copper for the last twenty years
has been I'm excess of 1624 cents per
pound and the lowest price reached dur
ing this period was IL cents per pound.
AS collateral security copper enjoys high
rank because it is not subject to deteri-
Grafton in storage and its quality admits
of ready determination"