Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-08

the Engagements, as making
factor in the copper industry
States Steel in the steel indus
Western extensions are also hurried
by a so per cent expansion Of the
American Brass company since its &C.
QUESTION by the Anaconda.
Of the probable move in Great Falls,
the Journal says:
Proportion Production Cost
Another important factor in influ-
encing the decision has been the desir-
ability of joining 20 Anaconda's old
properties o young low cost current
producer so that by proportioning
amount Of copper drawn from each
property according to price ruling in
the market earnings can be kept fairly
constant. and at the same time Ana
conda's Butte deposits can be mined in
such way as to give greatest ultimate
realization due to their excellent geo
graphic position for brass and wire
making to supply the western market.
at is we'll known that Anaconda
Intends Just as soon as conditions
warrant to build a brass mill at
Great Falls alongside its wire and
rod mill, while Anaconda's recent
acquisition of additional zinc
ground in the western part of the
Butte district was to assure itself
of future supplies for the electro
iytic refinery and the future brass
mill at Great Falls"
The price said to have been paid for
the Chile was about $50 q share OF
the transaction, the Journal says:
Acquisition of the G~uggenheim
shares will not only give control Of
Chile but ownership of about three
quarters Of the shares outstanding as
the Guggenheims held most Of their
Chile shares and only the Burrage
interest got scattered. Acquisition OF
Chile control is the final step in the
move to make Anaconda the great
manufacturing mining company Of cop
per.
"Guggenheims nave a high opinion
of Chile's future and a considerable
sentimental attachment to the prop
erty, rs it is the one great mining
enterprise they have developed them
selves from the 'grass-roots.' The
death recently of Isaac Guggenheim
has disposed the surviving brothers to
turn some of their holdings into cash:
Amount of Chile stock mentioned
as involved in the Anaconda transac-
ton is 2.20O,0 900 shares. As this stock
STANDS the tIuEgbItlSlIItS IDlIlIDs. II 1t
figured they would have to pay q tax
Of 1919 per cent to the government
on the profit involved or a net profit TO
them of 308.
"Chile is today earning better than
So per share on its $500, 900 shares,
80 that if $50 per share were paid for
n large block, dividends Of 81 per share
would almost carry the investment on
q 6 per cent basis.
Chile has $4,000. 900 bonds matur-
ing May l, 1923. but against this it has
$4,000, 900 in cash and Liberty bonds.
G~uggerheims Predominant
The Guggenheims today dominate in
the field of low cost copper production
and they are selling copper as fast as 1t
is being produced.
at is the outpouring Of low cost
copper from the South American mills.
coupled with the subnormal demand
from abroad. which explains the in
ability of the copper producers TO get
the price of the metal above IA cents,
Notwithstanding q reduction of ~
900. 900 pounds in the accumulated sur
plus in this country during the past
year.
"Chile in producing Ia, 00O,ONO pounds
Of copper monthly at a direct operating
cost Of a little over six cents a pound.
MS, OF tOuFbe, taxes no atCtliIL VI
the interest on its $4,000 900 bonds,
which is equivalent to two cents per
pound on the present volume.
Since Anaconda acquired Ameri-
can Brass, it has been looking around
for q large low-cost producer of long
life to enable it to carry through its
plan Of becoming the great producing
manufacturing unit of copper that the
United States Steel is in iron and
steel. Two factors pointed out Chile
as the property desired. The shares
had not become widely distributed, and
the mine was in South America. Con-
sequently it's acquisition would not
conflict with the Sherman antitrust
law no matter how high an output
might be attained by Chile ultimately.
In addition Anaconda owned, a few
hundred miles away from Chile, the
Andes property, another immense dis
seminated copper deposit, not vet TO
producing stage. making possible la
ter on the putting Of these two into
enc Chilean subsidiary. A 30 per cent
nyB nsion in American Brass business
since Anaconda acquired it the first
Of the year has FASTENED decision to
acquire additional cheap future sources
of copper
An important step in the develop
ment Of the Anaconda, us seen bv the
Journal, is the interest being taken
by the Rockefeller interests. OF this
the Journal says:
Rockefeller to U%nderWrite
1T is understood that Rockefeller
interests haye already expressed will
ingness to underwrite such a bond is
sue and to take whatever proportion
present Anaconda stockholders leave
unsubscribed. In this connection it is
to be remembered that for some time
certain of tho Standard Oil interests
have shown q desire to get greater di-
versification in their investments, go
ing into coal and coke and iron and
steel, as we'll as other industries. In
this connection it is to be remember
ed that only recently the share capital
Of various Standard Oil companies was
Increased SO as to bring market quo