The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1922-01-13
EXPLAIN REASON
BRASS PURCHASE
Ryan and Kelly Point Out That Pur-
chase Will Stabilize Copper In
dustry in Montana.

board and C. F. Kelly, president of
the Anaconda Copper Mining COM
pany, have authorized the following
statement regarding the purchase Of
the American Brass Works by the
Anaconda company:
1t has been growing conviction of
the officers of this Company that the
large investment required to carry on
the business of mining, smelling and
refining copper and zinc, was ade-
quately protected, that the business
lacked a stabilizing influence, so long
as the producers could not reach out
to the ultimate consumers Of their
product and take the steps which it is
believed necessarily must be taken if
the. copper producers are to meet the
competitive effort of the producers
of other metals in marketing and dis
tributing the same.
The initial result of this conviction
was the establishment of the wire mill
at Great Falls. The results achieved
have demonstrated the wisdom of this
step. Since the beginning of the op-
erations on June 8, 1918, to the end
of 1921, the wire mills has drawn into
rods and copper wire a total of 1861
100000 pounds of copper, which have
been distributed at a manufacturing
net profit of $850,OO0; the total in
Vestment having been $1,O57, ,73O.38,
reduced to $855,OOO.O0 after allowing
for depreciation.
When it became necessary last Feb
ruary to take the forced steps to shut
down all of the mines of this Com
pany, as did also most of the other
large producers on the hemisphere,
the necessity for acquiring such out
let for production was emphasized by
the fact that the production of the wire
mill was sold ahead for many months,
so that during practically the entire
period of the shutdown, it has been
able to continue the manufacture and
sale of rods and wire at a substantial
manufacturing profit.
About this time the officers of the
Company undertook an intensive study
of the manufacturing and fabricating
situation in he Uited States. From
this study it became apparent that
further building of. plants would mere
ly add to an already over-constructed
mill capacity and that an effort in
this direction by the Company would
result in adding decentralization rather
than stabilization to the situation.
The second proposition that became
apparent was that the American Brass
Company dominated the manufactur-
ing and fabricating situation in cop
per and brass, it's plants having a ca
pacity equaling approximately 4Oct
of the total copper and brass manufac-
turing business of the United States.
This volume would utilize the maxi
mum production Of copper and zinc
capable Of being made by this CON-
pany.
Negotiations were therefore under
taken for the purpose of determining
whether or not it was possible to Sc
cure the American Brass Company,
or control of its stock, for the Ana
conda Copper Mining Campany.
In addition to the direct advantages
embraced in securing such control, the
indirect beneficial results have been
carefully considered.
AS an illustration, during 1921, be-
cause of the inability of the Anaconda
Company to market it's copper and
zinc output, the necessity was forced
upon it to suspend operations, which
it is estimated cost the Company &c.
100000.
During this same period, the plants
of the American Brass Company op-
Grated upon basis which would have
enabled the Anaconda Company to
have produced 2O,OOO,OOO pounds of
copper and at least 100000 pounds
of zinc per month during the entire
period of the shutdown, without any
accumulation of metal stocks. This
would have enabled the Anaconda
Company to have avoided the necess-
ity for closing it's plants and resulted
in the saving of $6,00O,0OO in shut
down expense and would have been
stabilizing factor in the economic con-