The Washington times., 1930-07-18
GU Gee ENHE|NS
| IN CHILE GOVT.
\, COMPACT.

The Guggenheim Brothers
whose business was founded by
an immigrant seller of shoe
polish and glue, have gone into
partnership with the Chilean
government in a $S75,OOo.ooO
monopoly.
Compania de Salitre de Chile.
Chile Nitrate. Company has been
formed under a special Chilean
law to consolidate all the nitrate
interests in Chile. Next to the
Chilean government, which will
control so per cent of the stock,
the Guggenheims will have the
largest stock interest.
Stock in the new company will
be given the Guggenheims for
the properties of their $50, ,000, 900
company-Anglo- Chilean Nitrate
Corporation. This company con-
trolls about 35 per cent Of the
nitrate properties in Chile.
A. Guggenheim Idea
The idea of having the monop-
oily comes from the Guggenheims.
They want to check the advance
of the synthetic nitrate manufac'
turerS.
Chile is the largest producer OF
natural nitrate in the world. Up
to 1913 58 per cent of the nitrate
consumed. in the world came
from Chile. Then came the
World War. Germany, bottled
up, successfully worked out a
synthetic product. After the war
this synthetic product was put
in competition to the natural
Chilean product.
This has resulted in the per-
.centage of the world nitrate con-
sumption supplied by Chile de-
clining from 33.9 per cent in the
year 1923-24 to 1913 per cent last
year. World production has in
creased from 6,606 tons in 1923
1929 to 13,201 tons last year.
while consumption of Chilean
nitrate has been practically sta
tionary. Consumption of Chilean
nitrate was 2,243 tons in 1928
1924, and 2,737 tons last year.
Chile's pocketbook is vitality af-
fected by ups and downs Of the
nitrate industry.
The problem is still far from
solution. A price agreement has
been negotiated with the German
synthetic nitrate producers, but,
in the United States, increased
production of the synthetic
product is planned.
Muscle Shoals was intended for
the production of nitrate, but the
plant is understood to have deteri-
GRATED from inactivity.
Out of Switzerland
The first Guggenheim came to
this country in 1848. For 800
years the Guggenheims had lived
contentedly in Switzerland, but
restless Simon deS Meier Guggen-
helm, with his second wife, her
children. and his son by his first
first marriage, Meyer, moved to
Philadelphia. Meyer was born in
Switzerland in 1928. He fell in
love with his step-siSter, Barbara
Myers, and married her'four years
after landing in this country. He
tried his hand at several things,
including the vending OF glue and
shoe polish.
The first step in the organiZa-
ton of the present potent firm
of Guggenheim Brothers was
taken in 1872, when Meyer went
into a partnership for the manu-
facture and importation Of Swiss
lace. His sons joined him. Meyer
had II children, Of which nine
survived. S0NGn were sons. His
ambition wa y leave each a mil
lion, which he did.
In 1879 some friends asked a
loan to buy out a partner in a
Colorado silver mine. Shrewd
Meyer refused the loan, but join
ed them as a partner. Things
were not going so we'll with the
property. He went West. took
charge, and sent for his sons.
Out of this was developed the
Guggenheim mining enterprises.
They now control American
Smelling g. Refining, are domi-
VQant with j. P. Morgan and Dan
Jel Cowan Jackling in Kennecott
Copper. They organized Chile
Copper, developed it into a $780,
100000 property and sold out to
Anaconda.
Present Guggenheims.
Meyer died in 1905. Five of the
sons survive, but only four are in
the firm. William, who retired
TO private enterprises has never
rejoined his brothers. Daniel,
Ehe oldest living Guggenheim, Is
regarded as head of the house.
Retired in 1919 as head of Ameri-
can Smelling & Refining, and
was succeeded by Simon. who
served one term as U. S. Senator
from Colorado. Other brothers
hre Solomon and Murry.
The brothers meet twice a week
at 100 Broadway, where they
hnave a common office. They
vote on all important matters,
and 1t must be unanimous to
carry.
Harry F. Guggenheim, U. s.
ambassador to Cuba, Is a. son of
Daniel.
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