The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1922-01-05
American Brass Officials
Give Detailed Statement
of Merger
10 DECLARE DIVIDEND
American Brass Expected to
Declare Dividend in January
Deal Closed February LIST.


tailed announcement given out today
by the committee representing large
holders Of the stock of the American
Brass company in letter mailed to all
stockholders of the company in which
it explains minutely the proposed pur-
chase by the Anaconda Copper Mining
company of controlling interest in
the Brass company. The letter not
only outlines the method which will be
used to transfer the stock Of the COM
pany but also shows the many advan-
tages which will accrue to the com
pany by reason of the merger, one of
these being that it will do away with
the necessity Of the expensive copper
inventory as this will now be furnished
by the mining company.
The deal has met with the unanim-
GUS approval of all officials of the
plant of the American Brass company
in Kenosha and it is declared that
practically all stock owned by Keno
shans is listed among those which are
to be transferred to the Anaconda
company. NJ.
Ready to Complete Purchase.
The new announcement explains in
detail the merger which has been pre-
viously reported in this paper on the
offer made to the American Brass com
pany by the Anaconda Copper Mining
company.
Anaconda offers $3.50 in cash and
three shares of it's stock for each share
of American Brass company stock, pro-
vided at least 81 per cent of the Brass
company stock is offered for the ex-
change. The depositaries for the stock
are the Mechanics & Metals National
bank Of New York and the Colonial
Trust company, Waterbury, Conn.
1t is announced that the American
Brass company is expected to declare
a dividend Of ~ per cent for the
quarter ending January 81, 1922, pay
able to stockholders of record of that
date. The dividend, if declared, will
be paid to holders who deposit their
stock, in addition to the $3.50 cash and
three shares Of stock offered by the
Anaconda company. The American
Brass company has 10000 shares of
stock outstanding. No deposits of
L,
and Anaconda will deliver cash and
stock certificates to the depositaries
on February 10 in exchange for the
American Brass company shares. Dis
tribution TO depositing shareholders of
the Brass company will be made
promptly.
Merger Has Advantages.
The merger of Anaconda and Am
erican Brass, one Of the largest pro-
ducers of copper in the world and the
other the largest manufacturer of
brass, is expected to have important
results, not only for the companies
concerned, but for users Of brass in
many lines Of industry. For one thing,
it will enable the American Brass COM
pany substantially to reduce its pres
emit heavy inventory of copper, since
1t can obtain the metal as needed from
Anaconda. The consolidation will also,
it is believed, tend to stabilize the
price Of BRASS AT the present time
users Of brass are unable to contract
with manufacturers for deliveries sew
eral years ahead because of the fluc-
tuation of The price of brass In flu
ture, however, it is expected that the
Brass company will be able to figure
with increased accuracy on forward
deliveries, and that users of brass will
thereby benefit.
Eliminates Wasteful Production.
Anaconda's normal yearly production
of copper just about~equals the con
sumption Of the metal by American
&c
company is regarded as logical de-
velopment Of Anaconda's policy, which
was first applied in the consolidation
of numerous copper mining proper
ties in Butte, Montana, thereby elm
mating wasteful production. Since
then, Anaconda has steadily developed
outlets for its product, has increased
the number of the products, and has
gathered under its own control the
means of production, including rail-
way lines, coal lands and timber tracts.
' Anaconda Makes Report.
Accompanying the letter to stock
holders of the American Brass COM
pany is report by James F. Kemp,
consulting mining geologist, on the
Anaconda properties, Mr.. Kemp's re-
port reviews the history of Anaconda,
and shows its position at the present
time. He states that the company's
shelters and refneries recover 91h
PEI cent of the values in the ore, which
is an exceptionally high ratio for such
large tonnages.
Estimates which have been care
fully made" Mr., Kemp said, indicate
an ore reserve of sufficient quantity
to support operations on the normal
scale for fifteen or sixteen years to
come. Such period of time is un-
usually long for a mining enterprise.
Past experience shows that the devel-
opment in advance of mining indicates
more ore blocked out today than was
known to be blocked out ten years
ago, ahead of the stage of mining then
existing. There is reason to think
this experience will continue to char
acterize the future for some years to
come"
Has Valuable Properties.
Anaconda, it was reported by Mr.
Kemp, owns 100000 acres of timber
land in westarn Mop4ooa coo+a;o;ro