Document dQmp98pLD3eMb7d6rk17BnRzG

ATR MAIL February 5th, 1946 Mr- R. B. Dwyer, Executive Vice President Anaconda Copper Mining Company 25 Broadway _ _ : leoer au aM 4, new xork Dear Mr. Dwyer: The following la a statement relative the December, 1945 operations at the Bast Chicago plant: LEAD BSF1MIMG DBPABTMSBT The income for the month: Dead Refinery Bismuth Refining $1,160.44 986.85 The tonnage treated In December was 3,248 tons as compared with 3,516 tons in November an--^KB^4aaax4h. October. The Lead Ref; s accounted for as follows: pany materials ;toa materials kons Csebuats ea $1,467.81 2,513.66 1.10 -U3.52 $1,160.44 Mixed Metal Orieratloas The\Uxed meMi lnoome was adversely affected due to charging a selling cxpensc^sfcin^tythla operation for the first time. 4 summary of sales, selling espKi*<aad Income since going Into this MUstnoem has been as follows: ___,.t p b i gfiti__________ fttllrtnr tfri .* ir$H gtiltoi ftaacai incc*# September October Bovember December 1 8 66 50 16.89 119 433.06 230 994.99 234 $744*01 1.10 Ve had sold another 100 tons of antisocial lead In December to Deleo-Resy, which we could not deliver because of the General Motors strike. Our mixed metal business Is steadily increasing, and la more profitable than appears on the surface, since the base, upon which our margins are predicated. Is a rather high one. N11548 PNYC00009*S5 1 t 4 * Mr. 1 1* Buyer -2- february 5 th, 1944 ttxs_ACK$&ffue~eztlv* January ittwgl Caiti 9B 1st, 19944*6>* * aarriittan *w1Xin1 charge uas #99..C00 for parting 1,000 n h i of oar Dor*1 bullion, as compared with a prowloos eharw of #6.00 per - *e are preparing a naw sohadula for tha treatment of Baritan Slag and Sludga, which will ba baaad an our 1944 costs par unit of lnpurltles. Vo expect this schadul* to apply until wa can prapara another on* basad on our 1945 costs. 4s soon as all tha 1945 figures ar* areliable we will begin working out a new set of cost per unit of impurity figures. 174? 9iiti,BfCorgrlet The following tabulation shows the setal recoveries assuaad during 1945, and our actual recoveries for the tl^ee years 1943* 1944 and 19J % Lead % 4 ntlnony % Silver % Sold 4asuaed Becoverlea _____ 12AS. 99.70 80.00 100.00 100.00 tual Beeoverlea 1944 82.895 .100.742 100.342 99.629 76.723 1.491 101.2*7 99.547 76.597 99.585 103*526 Of the net adjust**nts< betwaan tha assumed 1945 recovery' inventory was an advsrs* factor becaua* w* bar* recognized recoveries have bam aaaO*fi**'-ois favorable recoveriaa v* have sho her accounts for tha difference "actual recovery as rwvaalad by This result is not surprising two years that our assumed stlc side because of tha years. Bo Bo. 2 Muffle 10. 3 aim# Bo. 4 Muffle Lead-free Zinc Oxide Leaded line Oxide Lead-free Zinc Oxide PNYC0Q009*S6 Mr. 1. X. Di/W -3- february 5th, 1944 ChMletl f|rfr< g*rrlc jitt .gtffM ,, . , _ w ' . t nay IaTMbr accounts the Custom Xatal Purchased Account was credited with *20,000 based on our preliminary negotiation* with the Chemical Warfare 8errt.ee concerning our taminatlan claim. In our December accounts, we have included an additional credit of 43,700 which probably Is the final settlement credit for this termination claim. All of the termination claim papers are now in the hands of the Disbursement Officer of the B.P.C. and we expect to receive a check for the final settlement in the near future. Sales; - - - - -.. -- - - "-- "------ --- "" Sales of zinc oxide increased from 482 tons in Xovember to 525 tons in December. Slab zinc tales increased fro^75 tons in Moveaber to 125 tons. Reriew of 1__1_i_i The iIncome fbr the z>lnc Oxide be. $72,707.19, which was rather encouraging shown belomt for the year 1945 was incomea ainee 1940 are 11437433,.,,583697506744'.-..1403_9164N, 1,900.99 72.707.19 In reviewing t: operation of tha American has practically beam eliminated our oxide for paint pur; oxide, is now being pz material. It should zinc oxide froi 1945, and thaX/ oiir sales , iX should be pointed out that the g Grajat falls dross as a raw material the major part of the year. A 11 of lng the oxide used in leaded zinc Muffle furnaces using serap as a raw ied that we reduced the price of our e price basis of 7-i# in September, s gradually increased since that time. 1BITX 1SAD DgPABTXElI the iber was as follows* l,nl bite Deed-in-0il 22,,349519.8618 December sales of 482 tons (451 tons of Dry Dead and 31 tona of Lead-in-Oil) could have been larger if we had been able to fill the orders for special grades which we had received. The increase in last Chicago stock of 116 tons which occurred in December was due to the accumulation of some special grades during the month. December cost of white lead produced was 7*081# per pound as compared with an average cost for the year of 1945 of 7.480# per pound. This resulted in a favorable effect on the income for December of 3,800.00. PNYC00009't87 Br. B. >. yer m February 5th, 194* Containers The Lead-in-Oil container situation Is s serious and an embarrassing one to our Sales Department. The strike of tbs employees of the Oeuder-Paeschke and Frey Corporation is no* in its sixth month. There is not much encouragement that the strike *111 and soon. The Batianal Lead Company, who also depended on this firs for their Lead-in-011 containers, is no* making its o*n containers and has employed the former Sales Manager of Qeudnr-Passchke and Frey. The Bational Lead Company is therefore no* in a position to fill up their warehouses and dealers..shelves with their Lead-in-Oil. Te are using a light gauge steel container that is used in the trade--co n-graces-saubaiSTw^"'-"?** i* "- ' not too satisfactory because the lighter weight steel does not take the pounds, a decrease of 216,040_psHiindsNddrlng the month. The silver in inventory was 392,833 ouxv*a?-*vd<|creiaV of 15,557 ounces since Bovemher zinc has been depleted as of January 31 the inventory Increased from $158,000 on lovember 30th to $190,000 on December 31st. This increase of $32,000 was accounted for by an increase of $11,000 in finished white lead, $19,000 in finished lead-in-oil end $2,300 in in-procees materials* The increase in stock was accounted for by the production of special grades which could not be shipped out during the month because certain shipments were held up until other special grades were available for consolidated shipments. PNrC00009488 Mr. *. I. Dwyer -5- February 5th, 1946 LA221 We mat with the Union Committee on January 3rd, 1946 and at that tin* reached a substantial agreeaent on tha proposed contract on all elements except tha question of a satisfactory Maintenance of Membership clausa that would comply with the new Indiana laws. On January 10th we held another seating with the Onion at which Xr. Wldaan, General Organizer for the United Vine Workers of America, with offices In Washington, attended for tha specific purpose of clearing up the Maintenance of Mastership clause questions. The net result of this nesting was 'that Mr. Wldzssn -Inclctcd that. Hip . *i i Shop Instead of our present Maintenance of Membership clause and dues deduction provisions. this we refused to do and Air. fildaan agreed to extend our present contract for (mother 30 days Or until February 14th, 1946. We expect to hear from the Union and their position on the Maintenance of Membership clause some tine beforq(February 14th. Me also held a neeting with tha Lttee an January 31st relative to a grievance concerning the Botary Firman* s rate. The Union agreed to allow the Coupanx^tn^uke some dongas in the equipment on the next run with the underbtkndlng thav the Company would give then a definite decision aonpejrnlng tjhn rate of pay for this job after the next run had been Compaq TW BBTISItiG pypTMgi M^edjtotele Tb outlook fOj apparent that our i as demand for lead xed metals Is encouraging* It Is now ed aetel field was well timed as far ed. Batterr P We felled a crisis In the purchase of battery plates for s price is a treataent charge of |23.00 per tea, f* Mast Chicago. The O.P.A. celling price la a 22.00 tree r.o.b. point of ahlpnent. Between the O.F.4. celling prle Eleven price there la approxlnetely 65.00 to 610.00 per depe&dlitg on the point of origin ef the scrap, The Federated it in Whiting is an a strike, and even under this condition they are quoting competitive prices and it is rumored that they are sdvaaelnc noaey te the dealers for any plates that the dealers will store for their aeeeunt during the strike period. Goldsmith Brothsrs are reported as offsrlng a treatment charge of 622.00 f.o.b. their plant with 62.00 freight allowance, or 63.00 per ton wore than we are quoting. It Is quite possible that we will be forced out of the battery plate oarkot unless we can justify a speculative gamble on future lead prices. PNYC00009489 Hr. I. * Dwyer -6- February 5th, 194* 2TBC OXIDE DgilfliaX The strike of the employees of the American lino Lead and Smelting Company has beat terminated. le benefited by this strike situation to the extent of 90 tons of zlne oxide which were sold to their customers. The threatened strlhe of the employees of the lew Jersey Zinc Company has apparently been eliminated by an agreement to pay them 15# per hour more wages effective when their new contract begins. ScrapI Our receipts and consumption for December and January *>*?*! below* December Receipts 390 tons Smm2.ttaa 643 tons January 659 632 Vs hare approximately a 60-day pupply M hand. It is now apparent that all of the low priced KirksXts lUafcsWm were able to obtain last fall has barn disposed of to the point where prices have appreciably strengthened* last fall we were able^tiTubtain a 90spo 120-day supply of Eirkslte at about 4-1/8# per ,b East Chicago. The present prices tr Kirkslte dies range f 5.2# par pound dallwered to East Chicago. It is rumored th e war plants that beadle large quantities of tirkslte die; able to reconvert these ilea into peace-time uses without dispo the scrap* This vary likely is accounted for by the obvi . be of reselling a number of these Klrkslte dies and raeast: ' to tibw shapes. In retrospect we probably could hairs sar tie wuy our scrap purchases had we been justified In the/purchase six months' supply of scrap. Va understand that the International ,orals and Metals Corporation has purchased several thous tons rksite dies and are anxious to obtain about 10,000 order/ Justify building a furnace for treating this twC 9 ederated Metals Division of the American Smelt, HeflutBgHCoapany is also actively bidding on Klrkslte, the Pacific Coast and at their local Ihiting, Indiana plan Idle latter bleat Is os strike In eanneetlea nth the cur a lu this area. In reviewing the results of the three plants In East Chicago for 1945, I thought it might be of Interest to you to note the difference In income of what would have occurred in 1945 on the old basis In 1914 and the new basis la 1945* I believe the tabulations below will give you a comparison of the old and the new basis. PNYCOC009*90 *r, H. I, Dy*r -7- Pebruary 5th, 4l m Bnii n flifli Lead Refinery Bismith Refining White Leed Department Zinc Oxide Department *135,33.70 1,982.47 17,377.42 t2^UlAk^k $ 51,332,39 I 23,121.65 1157,,506702..5781 7Q,34A,tt * 100,954-44 Please note that this change in incoae did not affect the Zinc Oxide Department results because there was no change in our bookkeeping for this department. PN\rC00009491