The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-02-08
OUTLOOK FOR ANACONDA
TOLD IN RECENT LETTER
GREAT MINING AND MANUFAcT-
URING oRGANIZATIoN-
CHEAP COPPER.

recent letter to the stockholders
OF the Anaconda company tells of the
condition of the company. its activi-
ties and the purpose in taking over
Chile Copper, the latter being the
question upon which the stockholders
will vote on February 26. The letter
follows in part:
Enlarged Field.
1.-THE Anaconda Copper company
has been TRANSFORMED from essential
ly a copper mining and producing
company to an organization engaged
in various lines of production and
manufacture The field of its activi-
ties has been enlarged until today it
has not only the greatest capacity in
the production of copper, but it is
likewise, through its rolling mills de-
partment and the American Brass
company of which it owns more than
80 per cent of the stock, the premier
manufacturer of copper and brass
products in the world
Its electrolytic plant at Great Falls
produces the largest quantity of zinc
of any plant in the world. and the sill
yer content of it's ores makes it one
of the largest silver producers. It is
likewise an important producer of
gold. lead, white lead. coal. lumber
and various other products. 1t is the
only integrated organization in the
ferrous metal business that car
ries through its own plants every step
of production and manufacture, from
the ore extracted from its mines, to
the finest finished products of copper
and brass.
From its huge mining plants and
smelteries in the west to its enormous
plants in the east
every improvement that applied
science can suggest to further eff
cheney and economy has been put into |
effect Notwithstanding which. the
company has been obliged during the |
past two years to pass the payment of
dividends to the shareholders and (
during 1921 showed large loss, due !
to shutdown and the reduction of its /
to market prices.
Conditions Explained.
"The fundamental cause for this |
condition is not difficult to ascertain. !
The company's mines are as rich; its 1
have been changed only in
he direction of further advance in the /
arts practiced; but the price which
las prevailed for the product during
1921 and 1922 at below a pre-war
evel with increased cost factors at
svery step of the operation, has left
10 margin of profit. The only factor
which has remained constant is the
grade of ore which forms the basis of
he operation. The direct cost items
If labor, transportation. fuel, taxes
md supplies have been very greatly
increased. These items constitute APP
so per cent of the total
'ost of producing copper. Since 1913
he average increase of these items
has been IS per cent
Power alone in Montana, by rea- ]
ION of the long term contracts with
he Montana Power company. is the
,nly item of cost which has remained {
In addition to the above
Iirect factors Of cost the next most {
Important factor in a large organiza- {
ion in reducing unit costs is the vol +
me of production T
THE principal mines and plants of
he company in Montana are balanced
or q smelter production Of about $780, {
10000 pounds Of copper per year. The a
educed production of the past four I
ears, by years is as follows 1919, v
i4,112,2S5 pounds; 1920. 155,Sss.575 a
ounds Z
This decrease OF production has 0