Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-05-23

LIE IOnoWiuS Is IL yHopSlS Ol us COLI
tents:
IAN available supply of copper far
in excess of the demand for cOnsump-
ton resulted in the decentralization OF
the industry during the year 1921.
''The industrial depression that had
become acute in the last quarter of
1920, continued beyond the first of the
year, resulting in a greatly restricted
demand. The surplus stocks resulting
from the sudden termination of the
war, and which had been carried over.
showed no substantial decrease during
the year, as production had been main
tanned at a level about equal to cur
rent consumption. Quantities of cop
per n brass scrap continued to be
marketed. The result was rapid in
crease during the first quarter, of
refinery stocks.
Cost Remains High
The market price for the metal de-
clined to less than II cents a pound,
while the cost of production remained
relatively high, due to prevailing wages,
freight rates and the cost of supplies.
ITO meet the situation a suspension
of operations was unavoidable. and ac-
cordingly the company's production
ceased about April /, the mines re-
naming closed to the end of the year.
Notwithstanding the fact that similar
action was taken by nearly all of the
larger producers, refinery stocks con-
tinued to increase until May, lue to the
refining of blister copper produced
prior to the shutdown. From May to
the close of the year stocks showed
a gradual decline, production from
mines in the United States having been
reduced to less than 20 per cent of the
normal operating maximum. The price
continued low. declining to about 1853
cents per pound in August, then grad
ually advancing to about IA cents at
the close of the year.
Heavy Loss Sustained
Under these conditions it was i'm
possible to avoid sustaining a heavy
loss during the year. The aggregate
of all items entering into the profit
and loss statement is S16,999, 555.19.
which upon analysis is shown to be
due to the following general causes:
(a) $3,1SS, 1854 resulting from
marketing metals in the liquidation of
stocks at prices below the cost of pro-
duction and carrying charges as set up
the inventory of December 81, 1920.
tb) S2,SS6.631.26 from the adjust
ment of inventories Of copper, lead
and zinc to the respective market price
Of these metals at December 81, 1921.
tc) S5.243 5000 was due to inter
est. bond discount and depreciation
charges.
Id $3.50. 503.39 was expended
during the Incorporating period for
maintenance of the property and neces-
sary organization. Included in this
amount are the sums expended in the
various communities, either solely or
largely dependent upon the operations
of your company, for the relief of for
mer employees and their families.
Brass Company Purchased
Convinced that in order to protect
the business of the company, it should
be placed in a position to control the
outlets of its metals and to promote
the sale and distribution of copper and
brass products, negotiations were I'M
tiated for the purchase of the shares
of The American Brass company. You
have heretofore been advised of the
details of this transaction. You are
not informed that it was consummated
February 10, 1922, when more than
% per cent of the brass shares were
acquired by your company and its sub
sidiary. the United Metals Selling COM
pany.
Upon its becoming assured that
these negotiations would be successful.
operations were resumed. the mines
starting production January 10, 1922.
An interesting development result
ing from the efforts TO promote the
use of both copper and zine, has been
the perfection of the Anaconda metal
shingle. Roofing is a use for which
copper and zinc. particularly the for
mer. are peculiarly adapted. Hereto
fore. the cost of sheet copper and the
difficulty of obtaining it's proper ap-,
l. ntiAr, -, rnnf, hnr r,o,,I- 4 I
its use. The Anaconda shingle solves
the problem. Although not perfected
until October. an operating plant and
selling organization have been devel-
oped. and the product is now being
marketed"
The report then devotes five pages
to a summary of the companys opera
tons during the year in Montana. Utah.
Arizona, California. Idaho, Indiana
and South America. In conclusion the
report states:
Company Has Expanded
Since the increase in its authorized
capital stock in 1910. this ompany
has expanded and integrated its hold
ings and operations to such an extent
that it has changed from u large and
important copper mining enterprise.
conducted almost entirely within the
state OF NOntaDd, 10 n owning and
operating mines and industries in many
Of this country. and has acquired
and valuable properties in South
America.
Having possessed itself with the
necessary facilities. for the mining and
production of copper. zinc and precious
metals. the company determined. in
order TO market its product continu
ously and to the best advantage. to1
enter the fabricating field. The result
Of these activities has been to bring
MO existence an integrated industrial
enterprise possessing complete facili-
for producing from mine and dis
to consumer, copper, zinc and
products in quantity, constitut-
ng IA substantial proportion of the
business in these products.
In accomplishing this expansion of
he company. the directors and officers
rave endeavored TO build for the flu
ure, and to follow a conservative pol
cy in the capitalization of acquisitions
lB0 in the creation Of funded debt.
Though conscious of the fact that in
% doing the present stockholders of
he company were carrying a proper
ion Of the expense that might justly
e regarded as unduly burdensome.
Consider Finance Plan
"A consideration of the matters