Document kDYN4dwr1bk5XEGKkk7YzaqjD

u CJ /v* v> b vCJ. _ > distributed into a far greater num ber ol hands. In carry out the consolidation in September it) } !, Phelps Dodge doubled its capitalization to almost six m illio n shares and added nine new members to its board o f directors, for a total o l -- _ b> u -w =* * ^ c^ bJ -- v. br, _i _2 br, ? b>i h co o C <u o Vz tSj c " O ob h 2Q bij - --- u ^ tU ^Z ^- Z 2> O ,> v 7 -** --CbJr: . d _ o '-' and barrels during the summer cloudbursts. For the com pany the obvious solution was to d rill, and alter several failed attempts, a crew using an o il-d rillin g rig at a site some six miles n o rth ol tow n broke in to an ancient lava How and tVL - /~\ bfj x 'J zfj __ TT -- ^ ~ p~3-- ^.c^.E>__ ^V 5 o .jjf s -S 2 J -- 2 '0 ! = | ? ^ I ' > 2 f. 'Z p iJtiiZi; iZei. j.i\7.iASiW>fc>; IWWWVSW b -i JyZ JZ J ~ r" y y = - -5 ^ & jj 2 C- C -, 2 > -"5j I . 5 V -5 $Tj Z gy c1 V tfj J -l: - * 2c - ~ ^-- z w 2 _c "uy yu y 2 IZac>TZ. cti 5* J as C Sr, -S3 & U C O-- x cr *.- C-/i u :sH 0 3 b 0. J I C ,9 c is =s cCcC Q HI CJ CJ sJ 5 Crt CJ oS ~ ^5 JC=J CpJ -CCJ u cj CL J= C/5 tL -^ C/ -- 12 r- CJ *Z Q -se i 15 *: e S- ^?z o m Os cS ^ a ^ _c ''J -- c/3 s/J O >~ - /S * 2C -- 4- ^ CJ a- sCC >. CJ _c - 4-< on CJ > >, cj _c CJ " cj cj > * 2 r2. CJ >, 7T -C >, 22 CJ <u cj O B z 2 tij CJ CJ j C> c/: >u 1) C/3 r*T` -- -r- CJ v . CJ C/3 CJ * -F ECJ -r- huge copper reserves. Hut ii did little to brighten the t rout tied business clim ute. T h e e:irlv 19 ?os were not kind to the Americun copper industrv, or to ;inv other huge industry lor thut mutter. W ith the U nited Stutes m ired deep in the (Ire u t cj C/5 CJ c. O > * C/5 V. V CC *r CJ >, cj cj ~5 V Eh 1931, h;ul un open m arket v;due ol onlv ($21,51 2,704 in 91 } 2. lutes s push lo r vertical integration seem inglv counted lo r little in the luce ol hurt! times. l)uy wuges, which custom urilv lluctuuted bv .1 series o f bleak news item s th a t reported " Moele/.uma Copper dlosed," " M orenci Branch Shut," ami " O perations at Bisbee (Reduced from ) i 5 -Day Schedule to 12 Days a M o n th ." F.vervthing " depends on the copper situation," crowded the storage yards at N ich o ls (.o p p e r refineries in l'.l Paso and N ew V>rk, and still more surplus copper existed at other Phelps Dodge properties. Dom estic producers, usually content w ith a six-week supply (approxim ately Both the quirky bathroom and its no-lessquirky inventor were studies in contradiction, Fuller, the son of an aristocratic New hngland lam ilv, was expelled from I larvard fo r skipping too many tests and later arrested at the W a ld o rf- II z- I 8 s x "5 If I 11-- S ifE - E *~ --u ~I' X 3s. XX 1-1 '= Jz dy i- E X u -3 _ X j= ^~ -~ xu *3 X>, 3 ""1X) '' x XX 3 .2 - J 3 __ =* . u E5 s* . J! x d -g= > 5? -XT' E Xt> " x c Jj 5o "X ^ = X * -- = t/ -- ~fJ - 31 i fcee X "33 'S. 0 nX E < H XX 3 uX **33 t: lT X s I 1.1 33'S.- X3 u 3n r. 3X_ E- x jj IS rO>n u= !"3 _3 X X -- ~z 5 -Co >. X Eu 8s -S '= ^c o J5 ^^ S = x -3 O ,E ,sC3 >-. a a sX >3 j- 5 J2 I 0 Xu i T, rC^v, JU= _ X rz 3E JZ n^ 32 0u^ -3-- SI * d X t'j 5S i03-J n >3. 23 xix - == Us s; c = s f- 3 -3 II II5 - =- ?. 3 -i2xX_> X3 ts II 3 -- li i 1 3brj X 'Z ^ 15 3.| X H..S X -i = -- X -33 d =^ E 3T cc `u r; 22 c -- rz . X 8 x 3c -. c s! ir o " d I ^ *= 3-- 3 3>-, 5 z c = xXX O - . = 5! - '^ J 3 *_ *r 3 < 3 _c - ' iz z> = I p E * v. XXX 3 t~-- s x -Ni 3 IJ S1 E. = O X xi ^ - E = 5 y I f 5 d i =5 ~ C .2 3 3" ~r. < E- -- ^_3E. & ,, intended to resist soap stains and keep the copper shiny and bright. A complete bathroom, which included an integral lavatory, toilet, and tub, w eighed 404 pounds, about as much as the usual porcelain bathtub alone. Two men were supposed _~__ XX a5 X X c/i -u >5 ~c 5 S L0^3 7. . "* c -- bfi XX C3 J * -o xE i_ - 3J J .1 -11 1 fI i o-- c c - c E to 3>. 3 `3 >, s dr 3 X 2 % * 5 2 $c 5 firs t 194 if == i 4! rz \J 2 ' ? V \mS -- X 2 < 2* u V rz ^ u * J3 wE a u *X IE D u :j 2 < c: 2 2 D a "5. 2 su 2 ;; ~ X, "5 J wli '>' 1 = " wc_ cF 51 3 2 ^ - U -x -- ^r- tr', - -- CC ^ =c 2- X ' u2 X-- = " z 1 1*~z 2 --4_> H y 1= J y V -5 > <-*~ -- t -5 *3 C2) S c: * ^ -- rz C u o -> -- 2 ^2 2 xj| rz X ? _T H -r '_2 y -2 ^ - b* S S "2 3 JZ rz 3 ? 1M f>r 2 2 5 3 g E uy y --^ u ^ 2- ! I5 ^ = -Z- %= i 5 '= ' .- O -- 9 - a. c s_J -- -- Jl-E 1 ;= 5 y = ill5. ji y 5 '3= = C y c c iy-j 2 >> c M 1 "3 -2; 58 b '' 0 -r 2 >> = >. cubic yards ot rocky overhurden occurred along a steep wall ol the open-pit m ine on M arch 2 it;? !, enveloping Jerom e in dust and creating a thunderous roar heard several m iles away. T h e " & I3 j* f 1=1:2 5 ---- I4 ia - 3 g S B 1 ^ = 3-- 0 su n>u=. ey -C O^ *^ C n e s Cy " OC = B 5s * - w u `u EC-S i 5 -3 i ^ r the sC | 'J-. u >. a y Ey i y v7Z I rs-, fst ^ i =5 y>h 77 _y u. > -- y 1 y "Cy -y* ^ CE D c E CJ E -->. e E D = , JC=J I I c .2 o ,y -r 3 E g 3 3 >, J3 V e= 3 `uCL .= 3 . i-i r- \l >U 3 E y >, ct 35 -.s o II 1 1 3 I z-z = s 2 I5' -c S 3 i- * I J Sa s.> ?3 *E ^ -5 a. er; y -- E C y 1 CJ * ---*-u32^ 12 E -3 S ey S..S cc 7s7 ---e SJ U -= I j w. -h ~ o 'E e ec y - p ' r: 2 ' u 5 c. JE 2 OU r-,, 'oJ'E 3~ '~ ' = U FJ > > "3 t; ? " 6c^ E_ T E *5 -X c y <_E ^3 e - EC - ~w JCEJ -E77 -C > CL ^ CL s3 --v *y= f* ~o Si ' U 1) w -S . E X y M E j; 3 -E E - 3= 5 < 3S ^ -E rz < _V .2 n = u- E u r*-. w JE 2 E -Ey ^v. E E' j :i O > S -- -5 D _y E E i yE 3^ t t K S bx, E I u t y^ -E - -E u :/>- "2- "B<3j to E CL "-- - ETZ - E EV -E CL -rEr'ni P E E3 _E h JZ r uau y i > S0 .S - E ^ J = E73 E E E E~ _C >y. J- |E f i -r -- 3" > 51 1 | |*EP3 t * ill-2 3 _yE = -- E jJ E s -^ < yu = ^ "r; -- w> J y C- 1I =3s x y t 1 ^ ^ - o f: bt E =E >o if - s5 ~ -5 * 73 X mE ! J &, -5 E -- c. cc ,5 E >*- .2 0 ' u- 'g -- 3S E g_ > c iC>f ey S ^ "E ^ & | j -E S 2 C _E %. = Of. >. _ ,tc -cr : -% =' " 5333 g 1i &= ^5 E Si 3 III I H - -t i? -S i -- y --. w ith tlic ir v;ilu;il)le w.itcr rights in the Verde Valiev in i y i o. T here, about six miles d o w n h ill from Jerom e, lie built a new reduction w orks and the model town olC larkdale to attract and hold />/Vfc.v of the Clink empire in the ji>rw of the Huyirny phmt in Nnr Jersey mul the Uniieil lenlc Copper Company in . Irizonn. S tt^ t^ -5: s s-u 5 i "5 -3 `J i t: C /- = :/-. 5 J" tX y= ~ t: -y 5 -o ^ ~ i ^ ' -- "? br, y- -- _y --e -3 E = - tci Ss ?c br. - E; E E 5~ x =~ y ~ JE E_ Ki ' cj o 'g " 1 ~ Z> '. E cC g. 3 ~ PJ 2 - if .- a - zfj 5 E C< Z ~ g. $ :S 00 PO surprise attack on Pearl 1La bor on Decem ber 7, 1941. A fte r that " dnv of inbim v," w luir ;t few vc;irs earlier had seemed like an enorm ous and risky undertaking was too modest to satisfy the insatiable wartim e demands for copper. J CJ be z JZ rt 1 ii' E M. a I s=> ai E ii IE Et -7. ^ <5'=, y I jC C "3c o 3 JZ bp "E 3 S- 3 .. & s u _e i) t ' 3 E a. = CL > JI ' `u bx c `u3 r . - s t? * t 3 ou 3 S bce H JZ ~ 1E ~ l c: X~ -- 3 o % be ^ s 3 c 1 S 3 - JZ .Si E >. C3 CL J ~ "I ' 1 if g | IQ o r- = r: "a. 'S <Ej = E *c c 5 .SP - V = 1-5-4 glj- -e u Wj 1/1 _ I b> JZ cl ii 3 c 5 a't: i: - b3e ^ >y " 0 JZ . 5 u S y > f >. E > ^ i> -r "3 3 C -S 5 s > Z '-t. >, H l Io J. 1 1 I.X -- 5= -~ s _r !r - o vE CJ - i 9"5 > E ^ -5 S' l! 'iz E c 5 jz " o 1 SS s -s 'c E33 " 5: -3 ~ obx rC: 5 "t3uf n;c: 1 c ^ ZL Z3 =E = &3 bce wu = "5 ^ rs "b3e . ii <u J 3 _. > j3 J X y E~ 3> ^c i "g c jz So u a -- c V. 3 ,1E E" Cot: -5 S ~~ E u ^y 0---- c ,= a "j i 3 I a. ^ -5 C Z rz nine ;iml focusing its nctivity at Uisltcc, l)hclps Dodge m inim ized production costs during the worst o f the h;trd times. A m i occasionally a ray of sun- shine pierced the gloom , as it did in i y ?4 when underground crews at Bishee discovered a *3 C-U. c -Zr. ~XVzZ 8 1 1 . 0K0 X cC5 -E .E E SL-S <rz bx. -7. uv X ruu: E < TZ V >u-- z o t tr, t i rC = D sS 9^5 S v= D si '* cb -- Z -3 bTj ,,s bTj z -- tt5 [jS O s rjr*?sz izcir;wff' v- W-----3BB measure u n til lie saw that Congress w ould like ly approve it.' T he third hraneh ol'governm ent, the Supreme C o u rt, likewise stepped up its involvem ent in labor relations during the late three weeks before the N a tio n a l Labor Relations Aet went in to elfeet. T h e tim in g was im portant. W hen the strike ended a lew weeks later, on .August 14, the M in e - M ill union eharged Phelps Dodge w ith engaging in tin la ir labor praetices /// lvf.un in mines Jeep binaub A n n u m . Phelps DoJpe rvwremix :rhen rear mme hemoe o f the net:- km kenpr nfprm lueiim i it bmlt ,1/ .M a n ia utter n j;~ . critical o f the Bisbee deportation o f 1917, a tlocti- incur F rankfurter h im s e lf had w ritte n as counsel fo r the President s M ediation Com m ission established by W oodrow W ilson to investigate labor unrest in Arizona. rather slanted " history" ol union organization that form ed a m ajor part o f his opinion in the ease, fra n k fu rte r probably should have excused him self because he was hardly im partial, I hat w ould not be the last tim e that the H o! Ajo, Jerome, and Bisltce m;idc developing m ajor new sources ol ore ;i priority. I'ortunatelv, the price of copper clim bed to ten cents per pound in 19:56, and that was encouraging news lo r Phelps Dodge. to produce, nor were tliev advantageously located. C orporate executives correctly reasoned that any attem pt to enlarge and modernize them would in the end prove costly and disappointing. more. Kngineers estimated that the company needed to lay at least fo rty miles o f standardgauge railroad track to reach down into the p it for ore and haul it hack up to the m ill and u n til all the projected expenses totaled approxim ately $42 m illio n . ' Id finance so enorm ous an undertaking, Phelps D odge sold 3.5 percent convertible debentures w orth more than V many facts anti figures in his head w ithout difficulty. Lavender came to Phelps Dodge from C alum et and A rizona, where his knowledge o f operations had greatly impressed Cates during merger negotiations. m ine. O n August 24, 1937, I' helps D odge Shovel N o. 1 dug deep into the Arizona topsoil at the 5,350-foot elevation anti brought up a dipper lull o f overburden, the first step in the process of p it m in in g ," started operating in 1941. Phelps Dodge purchased live diesel-powered switch engines to shuttle cars am ong its surface facilities. Phelps Dodge in t y w broke ground fo r a concentrator live tim e larger than its existing m ill / \" n J a n u a r y 30, 1 9 4 2 , wheels began to V _ y tu rn in the big new concentrator at iVlorenci, thereby launching production Irom Phelps Dodges latest and largest open-pit mine. *7*\r.y->?; r. --- I I 11 i. > -S' . - s- 1r | "x "3 tr 2P 3 S'Z y C- =z z _c -2 _y_ JJ =i yn Z " O _x y y y. X 21 -J yL. -3 C c s- S 3 u [Z 0 15 tp <~ X-- 6 y-- t1 c2 .E c o n ? a t* - o^ 5 - -o Sr -3 0c "I 20 T^ 3: = S 1 VC & = y 0* 0y> g 1 > 2= a. y> --X c c 3 73 "J2 i- P jr Z= H1 2I "3 3 22OLs" ~=73 >2 o: V %^ ~ y- ill c c . = 5 "2 = ^ * Vx O -Cr . Jcr * s i J= i -y C i; = s.^ * x ~uy x v. X iy-1 J c 1 *5 y^ .= 5 | ^ c t=t33 yC 2y C U 2& y tC o' 0 1c I j J t; = JJ ,, ** a. b o SS cC kTM -- -- tct ? r: _ Ii "3 UC-_ 3 u_ I 0 ' yC .E jo I; U- ^ Z rz si n <+- C O _2 '7 >i o= 5- c C ET- C y r= y o, sE 0 y 5 y g 0 dy u ' X "0 u y Cfl .t= _y JZ Cl * "u 3 y ^ - y o' y 03 u c- > :=j >, 3 _c y d 3 *-- y E y f. J s y 5E L*-. JC I 1 5 C- rz CL r: cO o u t a large-scale residential d,strict about a m ile southwest of old M orenci s town center. By the end o f 1941, it b u ilt 271 low -rent houses, nearly all ol them copper-m oled stucco dwellings, it housed single workers in the fu llv renovated /i . o vV' i l< \ r n . I A/V iiin in c v jot; l. -- I ' m i.i's l > o u ( , i . s ` n n \n 'u n it'd m p i/n u< nt n t h u u h u m n /v ib itn u -e tl tU u tt ftu rf ftm ln w U 'bi'f c In y /i/u iu y m the >hlf> m in ( J u te th a t u u y tltw fittv d fin .\ / / / c f t n > in 'fitfu l u it m l o th e r ilts titu :  Imiitui yx C' J O t V s 4 ^ ir it -- y ." _e yy j E ~x Z * ^ 5~ ? Tr. - Z. EE r^ y. -- ^O -r 3 =i, X * '3 ^ 3: "** ^ 2 '> o ^ u a x3 5 eI br,, - 3! 2D 11 ! el & _ r: "-- '5 3 ^ xX -V oo *_c -3" w y % "=' E ^ 75 ="3 3 E x x 5! .. v 3C : x HX E^ 3 h E" - 2 -- - -- t: c '-c .c S `C T f fc inyon, nearl) W illi X V I i' uiV: -2 E7 T>. - 3= 15 be --<~ eh -:; I I 11 HU-- x > 3 " 3 .1 j _ fI tL - -- -- y. _e -- 's ._2 II >, o< ly, -- ^ t', c~ 'u s. 5 S --iJf =^ ~?i > -- - 1 Xb E I" >* ' 3^ X JZ E - 'J 3 3 E .= a; i -* A' -- I t = - ^ J- UN-- 3 rz o 8" i5 -S .c -r Cl z w _E "5 ^ u 3 'd ~C Xpy n -J Sb | >. ^^ s B -5 - 5 Jy is ; ^ i i iE 2oc 5 ~ i> "3 -- > 5 -- 7. S s _ Ed cj o o xx "3 a 25 ^ yn _ y- -7Z --^r ?? X -r5 S 1 o> -- JZ ~3 _o ~-- .t a i r\ ^ ~ = _ br. -u -- t: --> -- r: E -= -- r: rC Ij ^c =c c^ -~ "X d u -u >. ., =i Z , > b> 3 ^ b; .= H 3C\ __ - 3-- S l 2X & "51 I I u tS "32- 3 .E r: C :b e UrX: -- x -^ 3 -S SI 3 S--vJrz:! -2 ib y E V u V _3 5 -8 u -- C "u "3 1) 3 3 3 s s 3 U <D 1r ii ^E "5i g 5S Cu s-3 I C-) 3 && 1 U v: =S i'=r* Vu O O _3 - * 3 c 3 t: '3 a EE 0E -3 6 Oh 3 U-r^, Os 5 7 3 "5 3= U O 0r r>r 3 yC a r- 3 0 i: <j "3 O -3 3 -3 OJ w 'S 3w u ct E 3-- U -3 Is > a at M "3 3 :g = U XQJ 1-- Urn rz JZ 3 & r: sr\ cl "E J~. > u 0 > r n * -S 3 .3 5 iy >. E ~y So = S ii y 3 z 84 3 c sa > -3 <2J O -3 " 3- 2 = "i f u -B 3 5- 3 Pa 5 5 y -= bfj 3 E 0 3 3 > SE 0 u _V bXj -s r^ c u ? t 3 cs> C 'E bfj 3 * S3 c_ 3 b i-- rz S -- 3 '~ S S < u V TME > _E .5 y 3 -5 -- > E "5 x yn 3= - E v: e ii 'u < -- y 1 ^ 1 -H f Z. "3 - ^ r= 3 -- ;j 3 bt > 5 "~ e" C ya - 5 CTj U 33 ^ | i ^ j_ O If i. ^ x-- !i;irtJett I);h ii in the Infe if^ o s to hold \ c n lc River lloodw .tters that could later he used lo r irrigation and to protect downstream Phoenix from dam aging overflows. Unfortunately, the capacity ol B artlett Reservoir was not always Phelps Dodt^c com pleted coiisti iictio n ol $2.5 m illio n I lorscshoe Dam in the m id-1940s, the cornerstone ol a com plicated system that collected, stored, distrihulcd, and recycled water needed lo r hoth dom estic and industrial uses at CN experienced sueli a decline in ore production during the wttr years that the nearin' (ilarkdalc sm elter had enough extra capacitv to relieve some ol the load carried by eastern smelters. I 'or a tim e it handled ore from Bisbce too. W ith till properties synchronized like the p;irts ol a line watch, 1943 was another banner year. T h e c o rp o ra tio n's annual report observed that copper production was the highest in Phelps Dodge history. W ith in the lim its imposed at tim es by \ \ \K A M ' adm iralty tubes as w ith o u t th e ir big guns, and a single aircraft carrier m ig h t utilize as much as tw o hundred tons of copper in p ip in g alone. It needed m illio n s m ore pounds of copper for sea- W isconsin, coiled into magnets shipped to Berkeley, C a lifo rn ia , lo r installation in an atom smashing cyclotron. It was all part of the famous /Manhattan Project. s V. - II 3 -S, I I' --C 5br I" ( g ?1 i* ^1 t 1' 5I II v. y Z be V uy b JX u. .. -C by "CVu3i is jz 2 j3 bEe u5 yu y 5a 5 /-\ U rz: "O rr ^ -E 2 c Vi y bfj 3 O be CJ u .E _c y yVi y o .b C JD 3" r. y & y y ' ybe V. Vi " Vi -yy V. ^z -2^E <P< y yu 2 2 ybe v. -- ~ y r i*5 li ~ ^ =: I I (I V- -5 '< h5 5: s tc > 5 .5 12? 5 1- I I- $ 1 I I- -I > f= y -> D lc -C J 1 i i.o D G a O u r= - -j 2 CC > CJ `j> G JZ .= - y s * - s = -3 5. E -- .= __ yiL 2x c? a 0 3 ^ J. Z l 3 P - -- u Z .2 JZ I C2 P C. o -- C- 'E wG -=T rz -- -- U 2 -- jz & Ec !L - -- D "3 "5 z. "3 iTj D 3 5 iE ^-- Ehi -- c; 2. S 5 & i3 _G E -- - EL CJ -- L> 5 " E u t: 3 3 G 3 ! >, "= .2 1 = sb 3c bfj 'E 'E G_ C__ 2>T.* C ^ gA ? G -- .G BE % G * Jf 1b 0J v. G ~ ^ t- y -5 5 -c rN .'2 EJ U V u D ri > i_ i- >. wy 4u_J S L> ~L i-- G _ ~L> O U~r: TZ if L> -2= 2- CL -3 G cCL -G "ct C> y. > c G r: LC` G Gc E = * Z Phelps Dodge (Corporation had m oney in the hank, a total ol $131.5 m illio n in cash and securities, plenty ol copper in the ground, and absolutely no long-term debt! Seldom had the future looked brighter. Dodge Ciirned suH kient money to m aintain its quarterly dividend o l fo rty eents per share, hut the general purpose o l government controls such as high taxes and ce ilin g prices for copper and other products, emphasized Cates, " was to 1 X 2 -a x rz u 3 z-- 0= %-- r: y E z c c & J3 y = .= 3 c 3 E " 2 u y i li y <3 3 y SJj >. -- X x. 3y yc y *3 = 22' H -- X. c -S u - > 2- 3 3 I It: 0 y > c n .2 ; ' > y s' -y -f Jy ir, 5-- i I 1 "S |`-3 X C * w 7= '. a lc 3 1y -| y =^ 5 B- 1rf u; 2 3y3 r-^ 15 i y _3 y y I I a: "3 -- y *-_ XX xr y -- rC* _ c >, y r\ -- "y z -3 3 - y '5 1 E J " E* y -I sr y- y - o tXa _c h/-, .- C C* S 3 sy " y J: _ifi >, SC C c- O' rr- " 5-- c ? 2 E -C is JI *35 T= c 3 ~ J 3it in- s "3 II 2 *>. y=: S 2 X ^\X\ %- % S'"5 3 .2 u _C ^ 33 r: y t: y y * y S 'Z = r; C yy 3 -C i ^ 'E c t J cr fi J y i= y 3 i-> C3 y V a c y i-t y u. y y 3 3- ^ rz ^ CL .5 CE C g y -3 u rz Ci_ 5C ^y a i y -3 uE -3 u -f ^y XT _3 y-- 1 u J ^ 3 y 'd ^ '3 .d. z n itte d o n ly e th e t;o s t ( th e u 33 3 X -- W. 3 u n -3 ` u y 3 y y IE 4 5 *3 y -5 os_ CL OS -5 'i|4N3 3 X. y y y ^ w- ^" yy c > y y sy So 3 t r; y " y J C dc y3 __ -*C- r< sC E. 'y^ id '4C C 3 u1 CL it 3. -3 C- =i3t u = i3t '3 & .3 " "5i ' 5 3 >. y > I 17Z -c S 13 y3 c 3 "3u C S - >. - yu ij 3 ? * i3t w -3 3 _y 3 '0 C u ' s -c 3 a. a y -s *_u3 r- - z 3 -3r? CL y .5 xc X =3 3- -= -3 = s ,J?Z -& C V! zr iiT 5' .\ 4 15 2i S CJ JZ > _' e CJ " i i > < E-- E CJ I I '= > c2 * tr. E s m "3 _ "E 'c S g 2 EE C Cj ~ jJ '> 5 CE s. -- *e: J: --cj cj ~ E Z- J i = 5 5 s n CJ r= CJ 5E .3 E cj '3= E cj jz -- CJ O Z I, E E ^= ~ - E tTj E "Eh E~ ^ u 7; S- > t: -- "73 H.-2 cj Ni = = CJ ~ _ tfj ^-- cj >, 1E r* o i f-- ? C >, = 8 7Z -- o ~= Z E. = rz 'C S =E 1l a: ,= 'Z =2 I s: 5 s C CJ c ^ -a. = x -a "e E 7C +EC-l IE -E --< 4-- E -^_ cj " 3 -E bx, - E r; E E .-- > := p -- c S iij "3 c fc - 8 -1 iL = (J .2 " '% ~c- o C- CJ >o 2 ^ -3 On o I.-s fcfj E- 11 * *3 JZ . 15 3 9 L ^ E ^ M '-- -E JZ Z. l u "> t CJ ^ CJ H x/ ^ Ow DW CttJfi s I 5^ i^ *i < X C 2* -x - S-- 33 0 2 I 5 CJ X^ *- S sr= CJ E IE 7= <= u- IE CJ in*j 3= II "2 i: 2 3s II CJ o *Z3 w >. CJ -- -o >- n^ 3 | I c CJ JZ ^ . 5 3Zf i/ 5 f C -5 r- $ i. C rz z. > c- =^. i- > tr =1 tr i I .? .g t: -C. '///part mi :;//( m id ruble //im /n fa rt/m i/o . fo r Phelps D odge C o rp o ra tio n , an era o f cautious and cpiiet grow th. In fact, during the decade 1947-57 the company's stockholders enjoyed a strin g o f fat dividends not seen since copper's hoom times before W orld W ar I; the annual cents a pound at a tim e when it sold lo r close to th irty cents a pound. F urtherm ore, as Page noted in 1958, w hile m ining, sm elting, and refining provided a steady hut relatively low margin ol profit, fabricating copper into various industrial sixteen years Inter the U nited Suites governm ent would a rb itra rily cap the risino- price o f copper nt thirty-six cents a pound d u rin g n wnr in Vietnam (a distant place that on 1950 maps was still labeled French Indochina), o r that thousands ot U n iv e rs ity nnd I Inrvnrd Law School, Page wns the Inst m em ber of the legal profession to preside over Phelps Dodge. I he hends ot the old partnership had been merchants; follow ing them was a succession of three presidents renow ned in W orld W ar II. In all his w ork in W ashington, Page dem onstrated a form idable intellect. A lte r W o rld W ar II, when Phelps Dodge directors recognized that th e ir c o rp o ra tio n 's recent close association w ith federal careful deliberation. W e speak som ewhat g lib ly o l the Page era. but in tru th it was d iffic u lt to define w ith ce rta in ty when the era o f Page began and that of Cates ended. Kven after Catess death in 1959, year, o r ro u g h ly six times higher than 1957-41 figures. I'he basic trend continued d u rin g the 1950s, when eopper prices increased slowlv from slightly m ore than twentv-one cents per pound in 1950 to nearly th irtv-th re e cents in i960. Phelps D odge even joined the raee to acquire uranium m ining and m illin g property in W yom ing, supposedly the newest road to wealth. :Bv the tim e (.atcs died in 1959 he had Phelps Dodge smelters, powerhouses, anti railway locom otives, hut blast turnaces gave way to more efficient reverberatory smelters, and by the m id 1920s, oil from lexas and later natural gas rapidly elbowed aside coal and coke fo r many industrial 2 3 be L> E -= ~ -u *u S -- tfj TZ V "E 'Z c. ^ V L> ill z 5 z3 *5 3 i J -5 E 5 V JZ I 6 | * I >5 "Jf- r c: o ^ -3b) .r ^~ u rz E 8- >-, C S- 3 *3 -5 --. u. I= E rz H. 5 'E _ %3 ^-- 3 U 7Z -p --- P u. 1 V ~ _ Cl bTj .E *5 bXj l EO r: 3 rt CN D-CN -- 1. c_ 3 E p 8E -x C - 3 3 t 2 s - s ' ~^ 0 a-> ~ _ jP P ~ r- CL p U~ tS i- P t- '5 .3 u i o-- w Cl p -- 2 C --p o 5 >, - -Z * C- -3 - -- y - -- = "E =3 > - c : 3 3 -- = c 5 B u u CN Tt" V O c uuu C n Cj 3>C < p E - * bt, JZ Uz V JS c c 11 i I -g D B t J t c fcb - ^ SP -- ~ _e ^ -r E = 1 3 1 Ii r! =_ C3 "* Jc a u " 3 u3 2 a- 3 cc 2 "3 X 1'Z ~ 3 *C rx, ~ o c 3 jf -5 3if r ". CN s = < O ---- 5 e 5 2-- * z L .5P I . 1 3>. X CL ~ P * -S C - g1 -3 ^ c H 3 3 "3 --> , c2 j= ? -r =; *_o c c bTj D p 3 33 _ bfj -3 H 3? o ix. CN . C _. X -- P 2 x. = Lr>- r s. t- "C 'C s zr E a s p O p3 =- p p R -B b-fv ?: g - JZ 2- t 'f 2 =a 5T* C u . - ?r IIS a. C5 S c u r: C- < -- X impressive ipranrity o f morals, including nearly i; o m illio n (rounds o! copper, i 5 m illio n pounds' o f zinc, 5 } m illio n ounces o f silv er, and 400,000 ounces o f gold. Kven in the late 1990s, Phelps Dodge continued to own the property and 5 3 ii 3xD ~a E~ --. r. - LX, _ IXi ^ ^5 3 .3 -- E -2 =s bfj r E^ C- " c IE c 5 "5 x i c: c __ v 5 -->. "i-"i V-- yj sI I i 3C E -v Z jc L* E 5 ' So a 5 Lo r Q b ~Si C %1 s Iifty -tw o thousand acres ol coal and tim b e r property in to Phelps D odge's ow n D iam ond D Ranch. N early two decades later, in the co rp o ra tio n leaseil the property to the h isto ric CS Cattle Company o f Cim arron, New Mexico, only because long-reliable shafts, notably the Cam pbell, Cole, and Junction, lacked the rich ore ol form er years but also because underground operations required skilled miners. 1hat category ol worker became increasingly rare during and 2 th c e ^J -- "2rz s_ r; sk M "5 cI su -- 3 c_ J S3 c5S ^ 2---- 3 -ur <: t % c u V a3x._ 5 O il -- >= 2 _ --3 3-1 S1 G -~>\ -ru-^:' 3C E -i 5= E * jT = = E 1 -- * .Z V c s t = J =5 S J uC V E c _c S' 0 111-- 1 = 3 2i g 7-- :j JZ c "G to r- 8 8 11a 2 a C SB jj u ough i ' c E a Ic X5. 4--* <u E u U "3 oE> Xz e -s11ou 2 _cuC i "u5. o E* , 1) tr, 'C E= = jz gp ' c ' ct u e 1> * s j>, rz "3Eczr. "'3 u- Xr: *r: o s 1 "b rz IE 5 g '> -4O3-- rz S J u c E S E D _E 2 o ^t 4--i ^ J c -E S *^ < y C it: _ 3 > -S '5 5 I o c o I 5 ESI 3 T~ * ec ? J= s" - -- Es u .^ 5 . t- r: xrr ta ^E ^" X tP 5 jr E cg y. A jo sm elter was s tric tly an in-house job, its design influenced by e a rlv-ila v operations at C larkdale where some o f its equipm ent originated and w here its c h ie f architect, the assistant general m anager K ir/.ell, w orked earlier. late iqqos. Its annual profits rapidly repaid the corporations earlier investm ent of nearly $100 m illio n . N o t content w ith its record production the A lorenci Branch fu rth e r stepped up p ro d u ctio n by enlarging its concentrator to lo r employees and o th e r eligible residents in the A lo re n c i-P la n ts itc -S ta rg o -C lifto n area. In the early iy 6 o s , as P helps D o d g e expanded its o p e n p it m ines at A jo , A lo re n c i, and Bisbee, it rem oved and replaced several m ine buildings and producers to avoid ;iny direct involvem ent m m in in g properties outside N o rth Am erica, In fact, apart Irom the M octe/.um a C opper C om pany and a lew small properties in n o rth e rn M exico and a short-lived part-ow nership o f a 'I .a: .5 3 =S t-S; >5 -S 5: J $ !' ^ f f- S. 5 Jn = '-bs a' g Sr S' g r 1 ^ a TSlf 1 ? C -5 r 3 p -3 - X .2 Vf 5 ^z -- -E 2 .= -- tr S = ^"J jz -~_ '-"> 'C J S -3 - bh 2 f~Zz ^ 5 .0 '" g. Z = -I Ml J-, 3 r'\ CJ ZL c C = J- a > zs ,_r --"J _r- - jz z 11f ^ 3J Z2 'Z CL C f ' J 3- -- Mu 111 3 t 'u 11 *.< E < ~1 < li ^ r* c 2 c: Si 22 C >. z3 u 4:--j C 0 4m c L> 2E L> S o3 c s 'Z =^ =2 < "S 3 -C CCl = C5 - zz *5 L y* "5 lc if M 56 5^ = 2 Ji S" CL = > 0 T ~= is zt E ' E =JI ^ I I CC jujj 6 Q ^3 -E -1 -5 S: J Cs -3 .2 I CL = 1 v m-- ^ 4" 2= - IE ^ _c -j 3 2^- '> = 3 E -= a. 2CJ iiu M 1 11 1 M * be '3 .3 -- J>. 'J* z *5 > = ^ 3 = Cc z z E ss = Z L> 2 33C i3 I z = L be .E *E -- z =L '5 I 7: S ^ Oa i J `c .2 ^ "E ir -_ c '> X -3 " C" v L_ C -5 i ^ y 3LCi C > l--] Z "-- w a x 0*ro: 3 3 f-S E J' _bp < Hi 0 1y e W3 =C n . a -E 0 2c r s. - Cm 85 V) w C f z rz Z 2 12 3S3 21 .E .E E 2 g S 2 C 2 a! 82 Z -j D ^y. .2=: -:s u s. I !L = -J4 OJ P 2y = -- rl C, C " 3 ci 2Z 3c V be c c S* 3c C - -3 .X u .t; 3 3u '' -- S. t rt E >~. =m E % ^s ^ C- '3 3 -a 3 =2 J. -=3 gSE - v 'Z >, 'Z lE LI Z -5 3 -E r; i" c h E^ t= 11 rs cz c = JC ^ L* ST* S .E S " >^ zc if 3 M ^ ZJ JX j>z jCxm .=x * turned the novel proposition over to th e ir staffs, and a fte r w hat one p a rtic ip a n t la te r re fe rre d to as " the battle o f the b u rn in g slide rules," they joined lorces to create the Southern Peru C opper C o rp o ra tio n early in 1955. T h a t same year, the $20 m illio n to Southern Peru Copper, fu rth e r, they equaled a return on investm ent o f nearly too percent a year on Phelps D o d g e 's re m a in in g equity! So prom ising were the operations of S outhern Peru C opper that its partners began in d a p p e r y o u n g D ane nam ed K d w a rd 11. (" ' le d " ) M ichnelsen planted the in itia l seeds o f wlvat later flo w e re d as Phelps D odge In te rn a tio n a l C o rp o ra tio n . (A detailed store o f the global R o b e rt Page's o w n p ru d e n t d is p o s itio n , to g e th e r w ith d e c lin in g earnings in A m e ric a 's nonferrous metals in d u stry d u rin g the late 1950s, inclined him to pursue a conservative course fo r producers into " voluntarily" selling th e ir m etal w ith in the U n ite d States at substantially lo w e r than w o rld prices. T h a t was when p o litica l in sta b ility in A frica, strikes in C hile and elsewhere, and fig h tin g in V ietnam com bined to the alum inum industry came to know m ore about the m e ta l's special p ro p e rtie s th a n ever b e fo re -- and that included how to substitute it fo r copper in fa m ilia r products. Added to that was a lu m in u m 's seem ing p ric e edge o v e r copper. th irty cents to forty-six cents a pound) w hile a lu m in u m held rock steady at about rw e n ty -lo u r cents a pound, copper users how led in protest. Oi 5D p " hngineers," Page w orried aloud, " were told to w ork designing copper out ol products, p a rticu la rly in the auto and e le ctric u tility 8i <Oj. i +*'&S-..}:* gr% <U}' ' vs"m *-'* .*'*..**&> a, * vy'4'.- *&<<. Ms? *b4.5' *V w fx;iv , wS 'v ''"'s'-krfFiV'''^ ^ J"[4''|? !," fir \< ^?W^tTfSif,3 *'f' r'$*i WWmmnMmmmBrTZr bJj ifI E3 C E < s| > -=? t. bco CL c 'Z CJ _ *i3j e aOu; -E E C n _r 3 =j 2 'H s to = =i 5y E" ^ h 3 2^ u~ y ~1 z E s -5 = = E- 0 " 'C 2 5 d s: = - _c III a uV -E V. -E E 3 = 5e .=E u 3 e - U5 E~ --*-- ~J"t _E >. ' > : !1 -i - e E 3 E 'i >. e CV - c": u e Ec Xr= 'Z E- 5 | >. " e E -6 s y j*zc-j -- _C b I0 0 ' s JT 5-f s4J ^E C^ tb 3 `5 "3 j--< e cl 1- >. 2 1s vc *5j S .E Ue= _--E -s e u S E- _CJ '-t r- -5 r- V sC c CJ -S a. bfj 4_> eiuu) *E ij `Z JEJ a. <N Et: e *C s 1 c cu s .E >. 5 W UEu Lz o3" 3 E > E3 C5 tL u- JL CJ _E CL < & VL> -E X u u v; . -- r: -- com m unications giant Am erican lclephone and lelcgraph sw itched to a lu m in u m fo r some of its long-distance lines d u rin g the early ry jo s . R epositioning Phelps D odge to gain it a com petitive edge in the m anufacture of elsewhere, ended in financial disaster that weakened the once great copper producer, Phelps D odge lo o responded to the allure o f alum inum , hut in its ow n carefully reasoned wav. U n like .Anaconda, it w isely did not sink m illio n s 7. E- z 9 c 5 D Cc Et 1 I0 jj 5J 2 5 => =2 E S !5 u_ 2 s- II 2 be g ~= ^cZZ i rz 11 J z tfj c p z 1 V2 JZ V _ JZ 2- bJj ^ c - 5 >t -- tz Z w X^ -- z *** rz V2 z & ^ | s J = V. i> '3 ss | ': -tl ia rz r- J= ? E 5! = 11- rz rz Z z-- V' uz -2 c s. 5 Cr- z ZJ H y C- C x r: __ 2 JCJ 3* s > >, JZ 3 rz p ita l CJ z - 1 C Z- jz u- I 2f bfj " _u X- >. > s1 S= rz c s! z u s. C 5 "ju st sta rt w ith a sm e lte r," Page explained. Y ou've got to start w ith alum ina, w hich means it you 're g o in g to make any sense, vou've got to start w ith bauxite,'' the raw m aterial m ined in A ustralia, the C aribbean, South Am erica, and elsewhere. In C C 'tjlj --u 5 s 2 io n "Phelps D o d g e needed. W e d o n 't m ake as m uch "m onev th is w av," e xp la in e d Page. But we d o n 't have to put in nearly the am ount of m oney we uould otherw ise have to do.""' By the late tyhos Phelps D odge A lu m in u m o rr\ 2 bt_fj rz CJ y "3 y CJ y c -O y V% b~y ua -- >* 7" "T^ P co c CJ -9- y c y CJ 'y -cu> , <-- CJ c -C *73 be W -r > 1-- S 'be *u CJ y V "= 5 C , CJ ^ co -- y so be ' P 5 CJ > y cCoO CJ _wc C^ U5 -!fJ O <u P y o H /- "I pj__, <-- CuJ o be 0 y -C c be -C 4--< 'c -u y !-- o jz "C y yy y wmp y > C ~v *T" yy y CO >y c5 _c 4-> y 4-- -C V5 5 be y p. ns vz f'l  4u -J 3 4 5-> 4 ^4 3 -3 65 3 5-J i . e | ^3 .3Si E? % y8. < ~^ -= hTj coc -i Cu W --^ a>. a noi "3 _3 '5 3 3 -5= 1 s* -- a B c J be a S bJj S _C *5 o ^ II3rr ~ 1 15 u I r I S 2 1 Fa l2 li3 .5 "3 J3: z 3 3u - = " t _y 3 -- CJ w" = 3 c: s. = 8. ~ 3 i e la J 8 5 3= 'u s i 3 3 I 8 8 ^'-32E_ ~ a. a 1 1~ S HI id^ ill II3 31. rg ^ :s 5 t s1 C~ _*C- >, tO .2 a* oc 3 a 3 JZ 3 ZL 31 3 -r. -S a o V, J, - u c 3- V _w *CJ 3- 3 r: -3 3= /8 "", - "3- ^ ho 3 --* a -- ~ TM_ 2 "" y. : ^y r=- --r _ E " "0> tfj Oc = . y d .3 " _ 32 E3 ud .r 8. a c= a ii ___ .=y. 3 ;e 3 55 O f c zti 'S' .b 3 - 3 3 "3 3= CJ >. i2 ' 33 * -E 35 .5--2 i cc _S 8E .= - y. p '5 E S o a I i3 3 B ?._ 2 |->3 S 53 J o " i J = 5 'E3 ,33 :. I' e I* 8 0 = J 8 I 3 '5_ > U r* that OVCl T 15E c a ~ S ^3 iV-> G 5 IS' <5 c?3 i '1CJ 3 o3 '& > b 'C *C -a 8 ,.y 1 3 C CJ -3 r- j_* c y - =r _ _ - 5' &S ^LT-, -* C\ C: -- 3 3 a cj f cj 3 3s' j-1 33 3C U ct CJ 3 33 8 O -- 3 4- 7Z C CJ 73 3-i 3 3 `3 3 J2 U_ CJ CJ 5 e CJ c <u U -3 C -- .3 < CJ S 3 -s -c 2 . J= = a ^to 3 j "8 3 3 cc C I * 3 J3 CJ "3 3~ ^ 5 jj a ~. ^ -- 8 3 --3 3C r: u '3 5 5 " CJ ~ 7Z c < hO 3~ C 3. 1) 3 1) tfj - o^c". 3J tO u a~ 5. bSs M ~i % O CJ .7 ^ 7. X3 2 rz 3 3C to u Er y. ^ Z the expanding fa m ily o f fabricating subsidiaries had outgrow n the old organizational structure. T h a t was the m ain reason it form ed a new w h o lly owned subsidiary, Phelps D odge Industries, Inc., on D ecem ber 16, 1966. P.dgar D unlaevv, w ho had fixtures. In short, apart from not m aking copper sheets o r strips, n o th in g was m issing at Phelps D odge Industries-- except robust profits! Because the financial perform ance of Phelps D odge Industries d u rin g its in itia l years was so on ns an acknow ledged le a d e r o l A m e ric a 's c o p ]ic r industry. I Ic played a m a jo r role in the new C opper Developm ent Association, w hich he served as its lirs t c h a irm a n , and in the International C opper Research Association, ol tTj E y Ou 3 E r; "3 o' i --r-- "3* rz ZJ >. ~ O E S I| |rz y 3 t2 0) On " e O P 3s rz i- > % i. J .S bij E .E i. 0 s & Vc ^ *i t; '"E 1 ^ r; o E >* -- u x >. c s ! *- "3 CE 1P E r: t: Vu r: bh T* = g_ "3 oE rz F j E CJ E. X >. * p ai be -p c c -- E 'u J s cy > z >. O 5 " E '3 -- -EC 5 w-- = be 3 . < -- n '!= XwE : x_ -- to E .1c E -73 be. y 1 e - ^ 5 *& E 3 1) -5 r a * > i 1) c 3 E .E i_e>> -3 OJ -3 -3 rr 1) -E 2 ca <r <5 +<. 1 ca E =3 3 bt u OJ 1 5 v ts. | 1 I- I V -E C -- y"3= E^ CU jf. J 2 - ii a 1. --- E * *E v ^ c V .> E be rf 3 c: tJj * E `3 -E u E. si E 6 .~ E E 0E EE a s y % I -3 > I!i be 5 s 3= 5 S 4c--> E 1 "5b Co -C E 6 >E* - 1 E J 'i _u E -_ i I 1 e s~ & " E jEj e --: .2 a __ : = < r *3 x & 3? C 3 g -5 ' I 1y E c- 5 > 'i _E U Hi! s: '5 3 *E= 51 "3= ^ -a V aa u _E ^ E V t) III1 ^ x r: a - & w> cc ^ J- i E5o (J a 1E '3 T3 Q 5 y3 S & ^ S. ."`N IIS X = tlj E c ~ -- r3 -= J= -E JZ a q5^ c_ ^u X 3 E 'x E E bP iiixo - _. E '? jC 3 E ^ 1P B.Pc 1 "3 1 E s IUS la IC > 5 *. r: r: <U C '5 IS I| i I i 2^:' oc ^ -5 s 111 ? J 5 { iI g ^ - ;> 5 I p: 5 aa I.o5 I "5 42 <; to m ost people liv in g in the 1960s and 1970s, when protection o l the environm ent became a m ainstay o f A m e rica n p o litic s and th e n a tio n 's vital m ining industry a convenient w hipping hoy. /Much earlier in the century, sm all groups of 3 -C cj hi) CJ O cj y. c ^0 -- -3 -V hi) u <D 3 _C federal enactm ent was probably the N ational I'n viro n m e n ta l Policy A ct o f 1969, which P resident R ich a rd /VI. N ix o n signed in to law on Ja n u a ry 1, 1970, to create the F a iv iro n m e n ta l P rotection Agency. bfj -- sJ u" 3 h bL It- c) i> CJ lie hastened to add that N ew Kngland housewives once burned pure o r elem ental sulfur to disinfect homes d u rin g spring hoiisecleaning.J Such cla im s caused the c o rp o ra tio n 's re tire d e n g in e e rin g vice-president R ichard Rice to ^J 3 r^ *- IJ g .1 'E y IrZz i |Ey -E y ri <5JZ - E 7Z >r-. * 0 c == 2y3 y3 - y 3y -s 3 '5 V. jj y 3 C- 15 "Z y yZ uT -- - w 2 33 ~ _y 'x ^ 3? -5 u j= . z 3u tb X rz ^ 3 /- -3v. _ y J "y J" _3 *j CJ r: z> V 3 0 -E 3 j= r: s c b =5 a 1 y = z > C '-5 s> & -J-2=3y.- - 3 E*3 y --E = 5>/5. bx, c E 5j j" -2 -E S ,, > * - o -- ;r 'E S c- y B3 = ' cy E 2 EE 1n yy3 E _x )UIS ) All = "_E *E ~rZ:. -y; >. = -CV 3 "3 _>. &-- tCJT 3 ^CyyL 5 V CJ w 3 y - E3- y 3y _--y --3r- u y j_ M x .0 15 *y E y a -rT -* L3 2- ^ 1 c 5 ~ bfj -- 3 .2 *E jx. y -- u5 SE '0u C- a y3 y tr, 3-- 3 3 `Z - . " - = "z y ? - :> t y tr 2 SX -- yy bx, j> .3 from ilisclv.irging in to nearby rivers. A fte r K d w a rd I. R obie, associate e d ito r o f( the l'j)jiiin rriiifr tint! M in in g Jonrnnl, visited D ouglas, A riz o n a , in 1928 he w ro te that its" group o f sm elter stacks, belching in to the "3 II I 1ii 11S I` s & I sy -g :|> -y:ls 3s -I 1&1s- Ij< I&-Ii 1Ijs 1a=?15= ^I 5 1 5 J ^ I IS E5 tr Z = >3 y*" 3 u y .5 2 1 .a --" Cl c; --- ~3 ^ " >. z c ^- z --* u j= > == " c - z ,y E t | 3 | " z rz " 'Z -. B. y E .= "= 'i E y Cl E S 2_ " Sn 1 ic Eu 5 be -3 Zu Z c ^ 3 -3 u3 s r-On ^ " y c i_ c 'Z Cl C` 5 c yz_ cc y yHi C 5 *5b y _ x y1 1-3 J= y 4- S- .E z o' " 3 35C-- := "o sm be 3 --3E ys ^ u '*. S" S - ^3fl 2 =n ^ E h 'u "< -2 v. -- 5- .2 -- -- E "3 Z .2 y Z -3- a >. E J: C3 s 3 z 1. = `Z u E "u 5= e ^5 |^ &2 E- ^ = g nsc =>. y. u "3 3 j_< -- be - -3rz --.3 J= 3 S >. =^ . y -yF " X c be ~a 2 Jr 3 u C y = vh r= t! a el5 s. ce I Ef t sc y 3 .E -a) --c aa= ---= 3P "c -5 -z: rc & _3 3C y -3 U !-- C c-- E- 0 -L S- c. 1 % a '5 y -3 II i. t y3 y y 3 2c >-_). -i_c c--. E J3 y c 2 -= ; y E tX 3 --. =y be be JJ B t: y _be i jL i^ a 5CL -C 2- -5 y-- ? -S' ,, <$5 ^5 1:15: <2 Sa 1 1'1 =55 -` -55 <>j t0 1 li S--s _ t- s ISm ^ <i - "5 I S 1 -5j r-j ts O =c a ~3 rj 4- r- ? "V3 *E D y _c t5 3 E j1->) 3E L> > su Cl D E E 0 r; E *aE__c> .bo S 2-3 < uC u Hs3 V, a rz 0S Q- 0 ^Q\ -uz 5+*t if7Z CEJ JE s V r-* C\ T u d E n E 3 ~ J rz z rz -5 u- 3J ^ u >, c?5 B CL -3 E JE 2 * -b tr < tXj <L> B* c. E - T h e re was o n ly one each in eight o th e r states. M o s t tro u b lin g fo r Phelps D odge in the near future, the yo percent requirem ent, if not m odified by state o r federal regulators, m eant perm anently closing the big Douglas R eduction 5 u J S' ~ I E <u p - -- =rz C" <A c 0 *: 5 31 1c. ic- i<7= E II SL - a-r L) -- E c brj e z 2L --3 - 1 .= ~ .11 tSj c 1 J 4 .e rz -- -1 V -5 Q u ite sim ply, there was no easy wav to deal w ith s u lln r dioxide smoke because it easily passed th ro u g h the big bags used to collect dust, Back in the early 1920s, when both Phelps D odge and the C alum et anil A rizona M in in g ' u SV - 'e le 3 E >* rz CL .3 VE t "3 5! = _3 rz V3 N e w L e a d e rsh ip fo r D iffic u lt T im e s (in n in g the corporation d u rin g those U n r i i . l i l t : i \. i I-: h / > o s , Phelps D o d g e had som elinies troubled hut always ch a lle n g in g tim es was a new and so o n -to -h e -h a ttle -te ste d continued to en|ov a surplus ol cash. I hen generation ol leaders. As president ot Phelps troubles started to loom large on the h o rizo n . D odge, Robert Page had recruited tw o especially 3"Cc -- rz 5 g. J 5= II zz = 12 =2 3-- * 1U -3-- 4-> --G ^ c: -= C/) _ "5 15 3: j= cj w . -- i_ 3< Is t -j5-= tjj c "5 c cj t; c .c S a - rz ccj 5 c Ot 8c ^ 3 CJ -S cc o c a 3S c rt G u a ~C '"' 3 j* .2 tij - 2 c c~ E * _c s E *0 S -E >. Ll. c/; C " t; CJ 3 o ru 8 . -- 4-< 5 M I & ? * . E 'P S CJ -Z c c C S) a G -S C- c < G 8cy feJj C -G G1 x. q .G cj CJ 1^1' 1S CJ _G ?L-E 2 CJ E o 2 3 x, -- T3 -- 1 "3 CJ ~ 1) S! Eb = g 5>. cj CJ M | a c u ^ tij C G -3 C = CJ '-3 = ,, X - CJ -C oiort = Gn C S J_j 5 X g= V - -= CJ CJ CJ s bfj | V rz 1 2m x CJ rz G CJ CJ G u- G CJ G > _r CJ CJ t~ Ef c _j: * . r< n --u rz _G 'f~ X ^^ % 3^ u J G "5 CJ -S >. cj if 2 g= g: -c ?z " ,3 c CJ J STj G '> Jz h ie ' V. < rz | G CJ l -- E. tfj CJ rz CJ G S CJ G G c ; t sx '" G. G G >CJ 'Z c CJ CJ -G G 3 rz U-. p -a s ^B u CJ 5X r; G- GH CJ J= Oc J CJ JZ > -- & >-, 5 -5 = J=i "G 5 s) --- a. u ~ 5C* -- _S cj -C a= 5< CJ .G. -> -- ~ J3 i. 3 3 '5 ^ t2 -S 1b --G 'A CixJ stnnding o n lv s litjh tlv m ore tlin n six feet ta ll, he helped power the D artm outh team to the 1944 N a tio n a l C ollegiate A th le tic Association finals. D u rin g W orld W ar II .Munroe served in the P acific as an o ffic e r aboard th e b a ttle s h ip was in 1937, a p o rte n to u s year both fo r young ben/.i and Phelps D odge. Just tw o days after he graduated from the C a lifo rn ia Institute of Technology, his father, C a m m illo , died in an autom obile accident. A quarter of a century o. N 6 o 3 fa v > Jr- bO .& 0> -C s*2 C3 QJ 3^ L UJ o fa go fa S3 <-- (Si fav '> &> CST5 c J -3C3 ^ _ "O c 0: G 5 on c r- 3 O <u bo fau CJ "G3 CC "3 r\ qj 3| fa u <3 u CJ E .E cs `bo G iJt--/>JT <u 0u qj ." C fa > o<Un C^O u CL *0 JJ c ui_ i-j 0 fa _bo a -; cu 5 u, J! 2 uri u qj o O -c 5 fa c b fa - 9. l 4-j <0 w fa -* S -a * O -14fa CA *5 -gcs fa 3c <u fa a fa co 5 bJo bc'p ^ "3 -r -3 faC3. faCC JTM o qj a. cr> fa ^3 U bo " O Q -S f"a3 qj <L> fa cz O bO _a Co fa o ,15- u ^ 3 cs 0-1 *3aj fa <u . bo ,g_ <u c - c - a c JS qj fa C 0 v V a; c obo o fa cz C on O Cj a> _C 0) 'u -3 QJ c o CL a> 3on c CJ i> 0) C G vT on obe S 0" 3 ^, -l fa y5- GG CL cl -5 CL "3 4; 33 - fa bo jz oj on qj G & "bo ucs C <U - ^C Ou Q fa direct liv in g lin k between m anagem ent and the Phelps D odge founders, th a t Fenzi and M u n ro c m oved up to vice-presidencies. lYlunroe succeeded Page as c o rp o ra tio n p re s id e n t five Am erican copper producers w ith uncertainties to ta lly d ifle rc m from anything (kites o r Page had faced just a generation o r tw o earlier. Above all, the new leaders o f Phelps D odge C o rp o ra tio n som e ,e th e u a lly n o re re q u i .:e th ; tlo u h alternative to fossil fuels. T h e ro;ul to success in uranium , like that in alum inum , proved anything hut straight. In each m etal, Phelps D odge expected to make a sizable p ro fit. And w hv not? Several nuclear-pow ered C ^r, J5 I1 F =c -V 3 5 be -- ~ v. be 3 - E?2 OJ 7F L_ > V 1o G u 3 c: ?r ^u F - CJ Z u E ^r. 'd i- s C"| uu j c- =P -- >. -- > c. .- = & w c ~ s2 3-3 -= -- o> fF in E 5 I" f ' c be --u --E ">3 ^0 ~2 %_ % 5 g &E 33 C =75 i " _.=C ~ v1 . C^ "5, --? rz -- | ?2 *r; Z5 O ----'C ~ ^ ~ -i < F =2 be G C s d `g c^ S_ 5y V tt r 3 .E 33 ~ -- it, E c F. './> -- C 'u CJ Sf _f. . li E -5. I a - 'ECJ IE r~~ p ?< c- be, r. S c G "3 C 4- I |J C. y J5 O G -5 - .5 15 5 5= 2 3 Jrzi I* U V. G CL I *- ~G ' t- a. 2 " J I | T J 2 i! c .i c fc: cj S 3J "cL. IE cl c 3G xG --C .E - H _G -- t-- G-- "O 3 5S GC .tj pu ir 2 5= e 'E EE . = '-= k*. C K ~ .2 .F tJj & 1 F ? c 'E = s " _ 3 V 2 zr 3) a C^n --~C c: ^ --- :' 5j Eh " s -j U tr. 2 s ^ r= .t: = 3 c c ~ u Q =. c E -5 defense p ro g ra m and th e w o rld 's g ro w in g n u cle a r power industry. "T h a t was the plan. I th o u g h t nuclear was going to he the answer to the environm ental p ro b le m ," recalled E. W illia m Seidman, a fo r substantial purchases o f uranium oxide by W ashington P ublic Power Supply System and U n io n E lectric C om pany o f Saint Louis at good prices, Phelps D odge seemed on the verge o f realizing its long-deferred dreams fo r W estern d subsidiary suspended W yo m in g operations in iy 8 i. T h e parent corporation hoped that the uranium m arket w ould im prove during the m id- 1980s, but it never did. Ironically, the only substantial m oney Phelps Dodge made fro m C ornelia concentrates and free its venerable Douglas Reduction W orks fo r anticipated p ro d u c tio n fro m Bisbee. D u rin g the iy6os, Phelps D odge planned fo r the day when the h isto ric m ines o f Bisbee no p n y J u ly 1972, when its expansion was s u b s ta n tia lly c o m p le te , T y ro n e easily ranked as a tru ly w orld-class copper producer. D u rin g 197?, it produced m ore than 208 m illio n pounds ot co p p e r, co m p a re d to a little less than 240 m illio n crushing plants anti a co n ce n tra to r capable ot processing fo rty thousand tons o f ore per day, adding a pow er plant and housing to r employees, and acquiring considerable m in in g and related equipm ent. Phelps D odges capital investm ent c*. CJ 3 JZ ZTj - >** -- jj cL 3 c -- CJ y Cj -u0 q y a CJ a u- CJ 3 q y5 ~U "3 -5 tF q CJ -> <cj- Os - CJ cj w . C -* y; u CL 3* C/3 CJ CJ bi CJ & _bp yg *-> <x bo tS * u 0 >s -q CJ CJ -iiuC C 00 CO rt* n r. -E U- y "3 q <7Z L_ au 3 0u JtZ--< CJ CJ cc u CJ q 0 qq' <r, >s 2 c LE CJ "C q 3 q TJ CJ bXj ct t_ C3 j>* jq 0 y "3 q cz qq rO CJ ** 0u, Cl "qj q 3 Ou o bu,o to 0 -- CJ r- "O Cs C u n til q 0 r"-. 0\ 'O ro cq ~> LC x cq x_ 2 a. jz Cl ^ C3 cz CJ CuJ CJ c wc -a cj iO jq -a o c q cj lC jz _ g q CfcJo -C5 *y* -T>3. I rSt* .qo -- 7: c _c- ^ ^ __wr cUj -- qu ^ _Q l* JS to s o - -- c CJ sI *3 3 cy S-, s Ji 2S ^ ~3 C 2 y 81 >* 75 ---C- Urn P5 CJ QJ -C CC q 5s0 c Os -o On 2 R: 5I <u -S> <5: g ~c t S5 rl SCjj at Tyrone. The fir s t ore was delivered m the mrw M e tc a lf concentrator in t<yj>. / 'helps Dodge later combined the M e tca lf and Morenct pits. Also w ith in A rizona, the C o p p e r Basin near Prescott looked m ore p ro m isin g than it had in years. Overseas, Phelps D odge devoted an increasing am ount o f attention to both its m in in g and its m anufacturing operations. D u rin g the D u rin g those years too, its exploration teams located p ro m is in g ore bodies at YVoodlawn, near C anberra in A ustralia, and at a rem ote location north o f Cape dow n in South A frica, w hich became the site o l the Broken I till M in e o f the OLZ A o n c k i a m i i . h r scene in Hisbce: going to w ork underjrrintml in this iim l u ;l post-Wm-hl W ar I I photograph. anil M etcalf. R e tro fittin g its existing " reverbs" to capture su lfu r dioxide emissions seemed both a costly and o n ly a te m p o ra ry so lu tio n at best. I hat was w liy B ill Isvans, th e in d is p u ta b le m a ste rm in d behind Phelps D odges m odern land and w ater thousand acres ol land lo r Phelps D odge, although no seller ever knew w ho the real buyer was. Because all checks were draw n on the H a rris Bank o l C hicago, rum ors circulated up and dow n the Playas Valley. O ne claim ed that C uban Q ko z > ?S r ( \ t. lJ>$Q// t 'JHkAMUIUUUJMPro nanegfwtwtwwA-i^ tTj --r Du -33 3 t CJ xDqr,--- - ^ u^ t" ^ ^ -3 jt=o 4^- 3 c * r o ^ co CCJJ 4--C1 CQJ_ dc 0 p . CJ J > uto -33 --O >. D K A M JJ s 8,3 *3 -3 *32 3CJ 52 ^33 <-3 3 -5 33 .5 3 5 3 3-- r (A" t3Xj '-> d ^ - .P U a ^ ' r- qj P JC 5J5C bC D^ D 3 '3* ~^- C x D = -5 C >Kbunrs, EcPD X " to <u - *- r" X x "W ^ 0 H3 bi - J> u C CN -q - C "CJ JC C^ O g JU q O . xD C,, bOJnJ . o-- P jc ,, cc D JC H .p bn -- cj d c -q cc "3 U C3 .CJ wc C 0 `q p jS -P c D C CJ CJ CJ g. O uCJ c. CD c CJ `0 C JCCJ bn c r-. Os jn ^ o n--I 1q/1j Cl Cl Oo c U -- /* '"' <l> .S' -O -3 oO C<U q s Lv <D <u 3O3 x J> 3 <2 f-H -a a. s 2 bOJn .a, ' . E 3^ C3 <3J CDJ CL, CL S c E II p -H - CJ CJ JC f-H bn c C X CJ CJ JaC. J2 -a CJ 33 C "D C U CJ JC c _2 C^ c -g, d br c- <u u D It 33 T . ; O c j: ?3 *"* CO a_ ^S 2 C3 V b.r 3 .P -s * u L u <u o^ bn , co *~ ^ CO qj > 3 CJ LC *U P Oh CO O CDL 3w3 D D C U CJ bn U U u Dr' Obn CJ O u 33 C CO V Cu -3 D O J* *j72 r" d^ v >. P bn o c <u CJ gC- <3D= tw e n ty to th irty tank cars o f s u lfu ric acid each day, seven days a week. Some o f it traveled to o th e r Phelps D odge operations in the Southw est and some w e n t as fa r as F lo tilla to p ro d u c e fe rtiliz e r from phosphate rock. industrial railroad and tow nsite, topped $360 m illio n (o r p ro b a b ly $1 b illio n in to d a y 's m oney), By contrast, the last s m e lte r Phelps D odge had b u ilt-- at A jo between 1948 and 1950 w ith about h a lf the capacity o f 1lid a lg o --c o s t slightly m ore (ie o rg e M unroe recalled his own rude in tro d u ctio n to the strident side o f m odern environm entalism d u rin g a trip to Tyrone in 1969 to dedicate Phelps D o d g e 's new' m in e . T h e corporation had invited lir e thousand guests to a w here local ore contained far m ore sulfur than ores m ined in A jo o r M orenci. I he 1970s posed uncertainties lo r Phelps D odge quite apart from environm ental regulations, w hich the corporation, alter =c 11 g. ! S S "S 0= "" ^1 g S i f. :M =bXj c *C be - -- _> E <U != fr, > M -s EH s -5 * aO ; A D k c a im : o f U n c e r t a in t y 279 Chapter Twelve tonne! it lr.m le r to reduce its lo n g -te rm debt tlr.m co m p a n y experts had a n tic ip a te d . N o rm a lly we" w ould have paid that debt dow n rather rapidly," explained A lunroe. But those were not norm al tim es. I he c o rp o ra tio n and its several = 5 j>. 3 ~-- 'O <U 5EC 7< O B ib ~ o-- CL J _bVTj X rz 1 O ,C OG s_ 'a "5 C\ G 3u G y 3y -- L ~ _yL J--1 Crz t i. 3 "" G Lr=: 'Vj -E X c -- u On G u 5 -- <-E SJ c5s r>V: u' "-" L>* ~ L E0 _G c. 1 c. d uy UXL> G- = 7 aX s a V gc I 8 *u CL GCJ >CJ 3 G ti lO G 'y ' >o 3 bij c 3 *u :s X^ Gd l2 L 5 ' r3rl--s G Cu. 3 n u3 -- Il tion, tic C 11 =_ CuVXuL 7Z E -- 'z "E 'u5 3 o c c tc -z ' p d yG. i DU IJh 5-- -z u ^ ]_X y. 1 t -f 3 = 3 >x c - "x ^ c" bjj .tr s ' = = _C>. ,,y ,_ =7 <if * i= d =f 3t & -G G >. G- C ixv > LG S- s Gg G I G " ~^ I ' 3 ^ 7Z = E3 ~7 = X ~ 3 '5 }u G rz sG ^ =j H a, 3 -- t: 3 >. -- x* 5 5^ --C___rz .x r- jz O' ~ - *G "3 _G y 3 8 bfj G E P. bCJ G. t C 'c'. 2 G 1 "3- 3 '" vG > i G G e *- - g. 4J8 J r. -= >. ^ fc UL> E Cj G X 1 i -H tfj 3E gf CJ w -0 b G 55 V^ pX 5 'E J Ef WD 1 G-- Gu *E 'LL 11 -- "3 O LC r-- G E x_ L 'M cn `u --- C u 7 G= XX H~ 7 r= g "* --: 77 5 'Z^ GjT` 57tt *5 ^X ld 'd JL -gGt o __ -G lo - rZ cn 'i. 3 -- oE zG "83 -E- D u rin g that sw ing th ro u g h the VM;st, A lu n ro e addressed luncheon m eetings ot lnisiness and civic leaders in Phoenix, A lbuquerque, and Tucson to re p o rt on the current status o f the copper in d u stry and discuss its o u tlo o k . In his s L- L53- rf 5 CO cL CL i2 7 ac 4G CJ > o cj G C -s L> 'Z c r: C S 75 L> u G _= -G` -3 S LCaJi "^ -X^3 ^ -- -CD *- =i, J- s . a _G i I "B CL -V 3 -3 _I d - G G 5 S S > '-3 > w o* 37 "C ^3 -1 2 A X 5 *a 1 -5 2 G 2 ^r __ <u ^ yN 2LU. S E <s L == I1 2IL lCcL '-gc cc cz & Q <> 3 = t Q O O G= Cc = B 1 V ~~ is: v z a-- * =rz V 7 -g -- u G -- 'G c E E "E ---- >E u1 SJ VC -5 Z S2 bGTj j| 3 -- ii > i-* X zr r: L 5 u D _C G L> 5 i 0 >. 3 -85" 3 ? r S - _G c 3 "3 8 ~ 27 " r- ilS lE. # -. QC ^S 't;V I J| I V I I (11 c o rp o ra tio n 's m in in g ;m d m ;in u l;K tu rin g sectors, i lie trio o l executives that M u n ro e , age fifty-e ig h t, had named vice-chairm en were I'.dward II. M ichaelsen, s ix ty -tw o , w ho was responsible fo r Phelps D odge Industries; Richard v _oc bfj o x V V cc Cl b C u x J C TS <U g z _C 1) yi_ `C bs_> y bo c cc cj _c: be ^ =3 O s_ c bo 0 >> o 'u <u bQ o c TM- yu bx Cl "C C bD G c n <v y~ c-- X" o oc N "c c "bC ^ b/ C c _o bij cj bo ru* J3 V 'ri s_^ ce 4^ X uV CJ m: .2~ *-->= IcS Q c. o --b --_ 75 y -- a Cl L Cx be .5 ^ OX c- DoC x Cs o-- bo b1>fj D x l. " <u -- ~* jG u " - o c i> JC "" x -- G -l: b> br,, p XX iy5 > IE ~ -r` t> &* Z ^i bi 4x- COC u --: y^ Q x ' y -- L> "ry- -tC_< G <D t 3J x-- w "br x - - c_ 9 y C - C bo ir -; ji 'D b> ~,, =_ ^ cG be -- ^ E n r- !_ b> 0) ^ u-> ~-E bb)x -2~ y x X s. *- -- ^0 GC bfi =L. 2 C CT* x " 25? E- E~ ^ xGy3 '" CJ y -- b) C* ^ >, r" o y xc>; r--cj L< ti s _C -G 3 L> X mc- - S ^ O >, D O C- "5 " ^ JJ Co cu ^ be v- c j- c CL u In J a n u n n ' i<;So the p ric e o f c o p p e r in constnnt dollars rem ained below the level needed to justify any new m ine developm ent. I Iowever, M u n ro e predicted to listeners d u rin g his annual to u r that, because demand to r copper exceeded a 5 s wr< 'OoOn tu 0 13 foresaw in 1980 were events c u lm in a tin g four t ears la te r in w hat Seidnvan re ca lle d as an " in te rn a l takeover" unprecedented in the annals of .American business.'1 M eanw hile, it was M u n ro e anil his senior at Tyrone, six days at A jo , and tw elve days at the jYlorenci concentrator in addition to an eight-day shutdow n previously scheduled for the entire M orenci com plex. As hard tim es persisted. especially after the fo u rth q u a rte r of 19S1, the II j- 4 "=c: * 1 I -I -5 Ti <; $ i 1 1 ,5 5: -I ^ I' i 5 i -s < s ;C t - i $ .? ? -5 "s I i i,-- V. S: Uitk> loujlikc irhrbiirs became u novelty. all form s became tile corporate gospel ill the early 1980s. K fficiencv, som erinies called the challenge ol p ro d u c tiv ity , included even th in g fro m the use ol larger haul trucks and com puterized dispatching C orporation, a w holly owned subsidiary intended to explore lo r o il and gas in the co n tin e n ta l U n ite d States. T h a t first year it participated in tw e n ty -fiv e e xp lo ra tio n w ells, all located in lexas. D u rin g the rem ainder of the 1970s, Phelps locked to copper traders for the next fourteen years. T h e o th e r was the C o m m o d ity Kxchnnge, o r C O M F X , in N e w York, established in 1933, it is today located in the W o rld F in a n cia l C e n te r near the landm ark tw in towers o f the W o rld com m on " copper" penny, w hich in recent years evolved in to a slug of zinc electroplated w ith a th in outer iaver of copper. It was clear thar Phelps D odge fared best w hen copper was priced low enough to discourage substitution but high w orld demand. Thereby they overflow ed the tub and le ft the w orld awash in low -cost copper. A ll o f this, o f course, translated in to depressed prices for everyone. Perhaps n o th in g m ore cffectivelv' illustrated how different the w orld o f copper had surpluses by cu ttin g p ro d u ctio n and thereby kept supply and demand in reasonable balance, T h e p ricin g mechanism w ent hayw ire d u rin g the late tybos and early u j j o s because expropriation of big mines in (T ile , Zam bia, in the private sector, w ho were forced to hear the entire burden o f trim m in g production to meet demand, because copper was an international c o m m o d ity -- that is, a p o u n d sold in B razil was th e same as a p o u n d sold in Bangladesh o r of econom ies. (C hile's red m e ta l p ro d u c tio n c o n tin u e d to increase each year betw een 19H0 and 1984, as d id th e a m o u n t o f c o p p e r it exported to the U n ite d States. As a result, in the e a rly 1ySos b o th th e U n ite d States and w o rld iij from Am erican taxpayers to bolster the oxerproduction that was flo o d in g w orld copper markets, those same developing nations generally hail richer ore bodies to m ine and less stringent and hence less costly environm ental regulations \r. jj cj p ocj ac be ^c; Fbe . '5 ,c --c _>. CX C .ox> Va23 XcIj c 33 a CXX vCJ J>- XI X cj *u _r cj 00 -Oo3 u cx CJ b3e cj C33 v3C 3 .2 be .t: "o^3 t- cj CJ -3c o V cj Qo" P <ccnjj O CJ O3 c so cj be <Oj XV* u xi y :: ^ > y bp cj 0 xx ij C u c ^ bO >. .3cbe >c zz p v CJ u >CJ. _xfJ 'x y b3e -- be CJ 3 >-. 73 cj > "c .*2C3J be '5 be CCJX 3 5CJ b1-e -5 _C .43_- 3 C3J > u: cj cj uCX Vui CC>J c Q OC _5 0V33 p CSJT 0C0 \ "33 3 c. g v .3 x- 1 z v ~ "O .3 cs "3 I I I -3CJ < 2 t--< yT 3 O - .3 JJ II CoX CbJe <u 3 o3 2 be 2 '7. VCJ CJ 3 be y. ^ overproduction l>v cxpro])ri;itcd o r governm entcontrolled copper mines in C hile and other developing countries continued to he underw ritte n hy financing agencies like the W o rld Hank and the International Monetary Fund to which 03 , 1 s^ S -- be bJ) !. .2 F 3- b 15-5^ 3= 3 u - c ^ .2be be .E b .2 b -3 --<L) cbe _cbje j>js Cw O8 C>J CJ CJ c ~3 Q u JCaJp o G on jo. cj J3 3u0C3J c 1 oCr*J 0 _3 .w U- iS aj CCXX o i-> 3-CCaC3JJJ 3 i-i CCC/JJ5 ' uCX > -2 i-j <N COOs b-x _3 c a C .2 CJ _3 O l-l a- n oJ. CuJ C0Ub3Je u Ob 4-J CJ5J 3 cr 33 QJ Jx c u 'Si 03 "be s 3 .2 03 o CuOcjl O3 .*CC23JJ i-j 0u cx CEUJ. X0I rO ccox be 3 -3 O xx u XcXj c u cuj .V jj '5 " -3 Oh *3 x*-ii P-, oCo3snJ 0xux 5 3`C<:2 3 ~tce uO3 CJ CcOj -3 LX3 bo 3 Vi CCJJ o ""uC3CJ >s H C0u3J 08 X0w3I1 b C3J OcOn CJ u0CC33J CJ 3 P 3. Co- CCJJ 'f s. CJ "3 Oucx 3be C\nJ `U g- V x0C3J .3 ,, 3 ~3 _3 cj be be 3 5 'O CJ JJ CJ 0b3e C -3aj *o-> 203 --C "C .osn -Fbe 8o cj Xa. uu C0>L<3J CJ 2 CC0JJ CVuJ pz CJ 3 CJ -3 4--i 3aube uC3OCJJ CJ -- C33J- OoCnX cj Co < -3 o5 c CbJe 3 c CX GC CJ CJ 2 CJ 3o0 CJ CJ w CJ CX -x; /3-v -3m . c_ 3 xJJ u tu: XI OO(--Cs -JoSn 2>2, c X3 r- O .3 CJ CJ I J3CJ O^ U 3on 5 .2 X CJ CJ 3 _3 "u CJ -- _j Cl_J CJ c^ --" J CX \0 CX - im age c u ltiv a te d in re c e n t years l>v the c o rp o ra tio n s to p m a n a g e m e n t in N e w Y ork?1' M o o lic k , w h o served as v ic e -c h a irm a n to r m in in g operations from 1980 u n til 1982, the year he became president o f Phelps D odge, did As the W estern N uclear episode illustrated, A lo o lic k saw h im s e lf as a m an o f a ctio n . lake th e tY Iercalf m in e as a n o th e r exam ple. O rig in a lly estim ated at $100 m illio n , the cost ballooned because o f in fla tio n to twice that am ount by the ce rta in ly no A p ril Fool's joke, com pany m anagem ent announced that beginning the fo llo w in g m o n th it w ould trim salaries lo r all nonunion personnel by 4 percent up to $40,000 anil by 8 percent lo r any in excess o f that m a rke ts. It soon became clear that fo r both sides the flash p o in t was the c o s t-o f-liv in g adjustm ent (C O L A ). U nionized workers in the Am erican copper industry first gained ('.O L A d u rin g m o re th ;in 25 |)ercent) w ere m edical expenses and hom e ow nership. B ut a substantial num ber of Bhelps D odge employees lived in lo w -re n t com pany housing; the com pany also provided them w ith good hospitals and w ith few exceptions ty fC , m a in ly over the co n te n tio u s issue of C O L A . L o n g alter manv o th e r unhappy events o f the early tySos tire fo rg o tte n , people w ill rem em ber the great strike ol ty S p often w ith tears w e llin g up in th e ir eves. Chapter Thirteen employees to the inevitable risks that w ould follow , hut in the circum stances Phelps D odge laced in ty H }, he saw no realistic alternative. So, despite d iffe rin g tem peram ents and m anagem ent in p u b lic consciousness, and th a t suited him ju st fine. Me m uch preferred to w ork behind the scenes. L e t protesters m arch along Park Avenue c h a n tin g w ith th e ir b u llh o rn s , 1 lev," hev, ho, ho; o to jz :j z u> Zfj -- D cj 2r c a - JZ cj JZ imJ CC//25 - >. 5 5-5 ZCLL `Sr --Z c/5 tJj U tO O ooOcn ho c C3 -- C CJ C JZ .52 13 u TO 1) E JZ o CJ O ca CJ u ^p u 7* 4_> JZ to c >, . JZ cj oC/5 oc 'E to -iz _ 35 c o c CJ C3 cu _c 00 Z1 o h ON -a TO CJ c to o D 3 JZ V JZ CJ _C JZ .2 c C SP pto 3 w u ^ ^2 C/5 -- C u *P cj to cz uCJ TO -O to 1uC>C'3yJJ. c is CU = -- CuJ p. 0u .5 CJ QJ _p jz CJ a. o JZ -- C/5 "3 CJ u3 Jj ZL CcJT Cu Cu CJ b 4C/--51 iZ _c cj u CU s >. CJ cj CJ JZ JZ tuo to C0J = s S e .2 03 *--l2! C/*>J ^o JJ c 'TO JCZJ to JC/5J c to uc -o 5 c Z5 CJ JZ Co^J w . jo tuCoJ u JZ o Q c/5 jjL CJ JZ CL u oo On c *S o > E <- JZ - Pu CtoJ cj c ^ a- Q E o zCzJ wS- JZ CJ rt to d Cu o UU O O ^ tr> < C c 2 5 2 CJ JZ 4-J c CtoJ uP co oS ,,C JZ I JJ as UJ I CJ Uj: S ^" : -? < aC/5- -M ^-- . c Z -* = ^ u 3 --. > cu cj "CJ S *T3 r-C< CJ *-- *> N> a c ^ ir z < z c CU 1j TCtOoJ o *a> OC to CoJ C Juj y5 o c CcJ --1 CJ V5 to c J ^ .s TCJJ Cli 5^ >CJ cgo ?5B!ar contentions wuH-unt. learned that tw o Phelps D odge executives in A rizona agreed to te m p o ra rily shut dow n facilities in strife -to rn M o re n ci and thus appeared to com prom ise w ith organized labor, he hoarded term s since the 1920s. Hut m ost o f the m ajor producers have found shelter in the arms o f rich o il companies and can ride o u t the current storm protected." Independent Phelps D odge, it *^ II II 3H 3 1> > ` CL -=_ ~ -_J >. c E & fe JaZ C & 2 r^ c" & bJj I o s ao c i`5 2 3 0 t S g-: . j- ^r- s 5 ~ U _ ~V 33- a tr2z -- JL 5P I `I JCl* `5^ " t: | I1" = c '0 ,.3 e %r. J0= .y < 3 -*5 B 2 11>) B o S ? eiij: " z z 15- E ^ uc -- i . = cO - *= tL 5 or m= '=^'^I =V 'c* S'-> >Z -if & .C "3 O -5 n 2Z l"c y "5b F la c S r; o S c c -* I ^ SJ a s <c/;i ---c2s: IP -r I On ? E < "5 C- CJ S S -" 3^| - - c I sf . c j-u* =- 5- C o 0 bJj 4* u > VOI ~v 2 r oo "2 Os ^ - "3 & -2 3C 4* J=" 0 - o 5 SP -S u- VD 5 &C C CJ Q 42 4 O >> 4Q 1>) 4= CJ SL 4 L> w ch 4J <J Ui o c 12 V 4 >o 4O c4/1 c5 c a "2 <u u 42 Q V i-J "5 VI c 2 bo C3 "TD 3J 3.i2 C/1 .4 `4 "3 42 a. c c c: P <U -C -3 O uC cc o W yl . 3 0 <D c/l V 4 42 c & L_ c0 -- rUa O 2 CL VV c/l 3 G 0 r2 rz a -3 ca t! rt 2 c: cj 3- o S CaC L> <2 Q -9- - -3 >. -p <U N Oh .2 &^ ug aj 2- 4o 5 *3 % J5 S- 2 a; 3 >* > >, =2* 4 2 P Cco cGc -R Cw cl u s CO 2P -p> CJ 1) 4b/j a; -P -3 'G > > 4 V "3 75 s 1) _C 43_j Q u 15 OJ **P bo " ** 0O > u c 4- G V VI O y -r .O 42 >** u -C Q *-> a 4 CJ Cl -3 C CL 4- O 3 ^c O C 0 4 -5 D 4 Cl 22 C ~ 0 4 VI <U C~. CL --1 c <3 u > O V <x CJ 2 >, s G c in "3 U *4 -T3 _c cL VI CL 3 Sdj o though the dom inant one was the International U nion o f A line, M ill and Sm elter W orkers. T h a t, o f course, did not insulate the corporation from the wave of postwar labor unrest that swept th ro u g h basic industries o f the U n ite d States, unions affiliated w ith the conservative Am erican Federation ol Labor held representation rights in jot) areas re la tin g to co n stru ctio n , m aintenance, and operation of large m ine equipm ent. In addition, several separate railw ay brotherhoods expired in early February. As lo r the ongoing m iners' strike, James Beizer, m etals analyst fo r Iron Age, an in d u stry trade journal, concluded that Phelps D odge probably suffered the greatest " shellacking" o f the four m ajor producers A m erican copper com panies were m uch m ore subject to the ups and downs ot the w orld c o m m o d ity m arket than w ere steel com panies, F urther, in the copper industry, unlike the steel industry, each com pany negotiated w ith its n itio n invariably sustained strikers through the lean davs o f the strike bv c o n tin u in g to extend them credit at Phelps D odge M ercantile stores and by deferring rent on company-owned housing. D u rin g dow n tim es, Phelps D odge debts. ('actor in to that sim ple equation the in u ltim illio n - d o lla r losses that Phelps D o d g e s u ffe re d in iy S t and e a rly ty K y , and it is n o t surprising that the strike of 198} did not fo llo w the long-established ritual. devastating to agree to another im p ru d e n t labor settlem ent that w ould have added tens o f m illio n s o f d o lla rs to Phelps D o d g e 's cost o f p ro d u c in g "c o p p e r o v e r the next three years. "' P re s trik e n e g o tia tio n s fo r Phelps D o d g e 's Scanlon gave the union negotiating com m ittee Phelps D odges " fin a l" econom ic offer. It called fo r no wage reductions fo r em ployees already on the payroll, and only a few cutbacks in benefits, such as tra n s fe rrin g to em ployees som e o f the M cK e e and R o b e rt Retris, representing the u n io n c o a litio n , and J o h n K B oland, Jr. (a senior p a rtn e r o f the Evans, K itc h c l and Jenckes law firm in P hoenix), anil Scanlon, fo r Phelps Dodge. N e ith e r side budged from its p rio r position. that firs t day. In operating its plants in defiance o f union strikers, Phelps Dodge em ployed a la ctic used in fre q u e n tly by the managements of large A m erican companies d u rin g the decades after M u n ro c emphasized hack in 1982 th a t " o u r b a ttle is n o t w ith the p rin c ip le o f u n io n is m " b u t w ith socialized foreign com petition subsidized bv in te rn a tio n a l lending agencies. F or m ost people that was a fa irlv esoteric distinction, ft was hard they are people." (ic rta in lv that was never m ore vividly illustrated than in the grim confrontation of ip H p when " the com pany" was personified by M u n ro c, M o o lick, and K innebcrg, but not just those three alone. T h e re was, fo r exam ple, Pat 0 y y* . w- y u o `yn tso. y __ <* r~^ o\ y y 24 y pC . o bo I& * u yc cy G ^> JT T $3 -j. y ho -33 u _> w2 *5 " y" ~GTO Oobo bo ^ Cy bo O 3 -n y js 'to u bo T=5o Cy XT -C c j2 cTO y 00 c -* oyu oO o G bS3o < y y y is y S%. xy ^ `5 E ^ o d -G >s U o< X y 5 p c "C TO %> * bG S ^ y *Ad y J w5 t: y J to v>G^ ^ bp jj <0 G TO f~ 8 8 y ^3 X ,, to -o 11 fB TO C/5 _y v> to** o -G -- "3 ~C bo to y_ O G3 .g 'E y C T3 GC 2 *5 illTO3 y > o > c y ,w U to o -C 4> *-* GTO -C y I1 Cu y O -G u *X3 yG a J t y C 0y3 I c. u O TO c _y y y -C y CUG 0 0 % y* 1P-TuMO VTO5 & 2 3 u 0 ^TO w Otyo y_-y, T> y y TyGO y Gy *5 yyy> .SS JsS MOyM O s to TO3 jS TGO -c y -G ^J 8 ^ 53 ^W to , .2 *G , 23; O VV GG Xw y*l C &0 yy to 3 bo >^ y TOo* ft . "2 < ov: ^ 2 .2 y rj<~ <u o g a y y > y -C fc-S bo yu G, y yx 0 bo y^ G` ^4 TOb y 0 bo x*- >, y c T^ y zc c g f. y o3 <u Xi bo G S -2 o C/y5 y TO >v y yu. y y(/3 C/j c y c E o TO G y> y y y> y c _y = Si M cK e e s union activities d.ttet! from UJ40 w hen he was hired at the same Bethlehem Steel p la n t in Seattle where his father bad w orked lo r tw elve-hour shuts per tiny to operate the m ines and plants around the clock, seven tin ts a week, T h e corporation in itia lly cobbled together crews rhe anode wheel. That was a tense tim e, and having to run the picket-line gauntlet at each s h ift change " wasn't a very pleasant e xp e rie n ce ," recalled the future president o f Phelps D odge C orporation w ith a generous measure of issue o f the u n io n paper contained a sidebar headlined " 66th A nniversary ol Bisbec "D e p o rta tio n ." It in c lu d e d the w ords, I lis to ria n s agree that the Bisbce deportation that affected innocent men stem m ed fro m the dem and of rhe oO oo CM LO CD o' CM ^2 ^ 3 tf 2 'oi C '55 3 c .42--> ,4&_J c~ .E Q.2 1 S E b Pb &KCKS.E ' -232 ITS 'Ofl 4> O 3 I o go KCO *CO 2 tj . P cj j_c to Cl. c &c|^ cc(T/jj * tU"y ACj3 J5?- Xo < CJ CJ n3 0-0 _g|8g-|?.S cj 3^ c- c^*_c Xo 53/5 *.2 __"2 _ -a -c g o.2B^ag |i CJ CJ CJ CJ c ii iCJ S^B Is S bco _ = ^^-3 cj E E ^ c'E o ft ~T CJ --* pill8 s kC3f o -C ft &flf 1"02o </> -a D 5? Ic -o c 2.E< </>n Coc 2X.O &c.^ c;E _ -_ 1CoJn = oj CC Cr*J CJ ca Cl <D 4""> S Si C F - CJ O 3 S^5.S S3 E t/j 8^#-= & c.3^ C cH/C C CJ CJ <j -5 oj tSc is!. ^ | h 3 cj o o 2 E-a oj: s to 2 Q O) ij dJ H CJ I S C c g 3CD CJ gra Q 2 5.2 S c-tf ^'ortCJ ^a.ixouci>a |S$ 3 O 2\r, Q oC o N ^8-g o-g y.E-a I Uj 1 e & a- s-g-C U < c '"ug ^^ JTC2J-o-^1 XJCzJ -C CJ ,A3 * ?tj E12- Pc AJ (^N A1 I T h e shooting o f little Cihandra Fallant gave G o ve rn o r B abbitt the rationale he needed to step tip c iv il p ro te ctio n in s trife -to rn areas. A fte r visitin g the convalescing child at her hospital bed in Phoenix, he prom ised her m o th e r that he cof hij 3 :J tfj co 3 jz au vc u" 3 3 _c 3 -C w tb ^ .co c i-t 3 3 3 3 3 -- h~ 3 3 tO y bb 3 3 >. *- O> JZ> 3 U3, > O _3 " -- v, 3o 3 3 CJ bf. 3 U CJ -C3 be to CJ CJ 3c 3 c 3 ,,tO 3> 3 03 a. 3 dim inislied ;ifter local newspapers reported how much m ore strikers earned than the typical w orker in that b o rd e r m etropolis and after a feature s io it detailed how strikers in m id-August viciouslv attacked a police dog named JoJo w ith Or- .3 3 3 CL b3O 3 O> CL S2 g & 3 v3. 3 3^ bo -3' |l to o a- E 3-3 3 3r- Oh 05 3u. VC 3 3UO bo 3 bo c 3 r* 3 3 33 So C/5 33 3 3 vQ to u 5VO 3 3 4--t 3 u bo "2 C3 4-J "T3 <73 Sb O hj 3= 3. JX >- 3 3 -3 "3 tuo 3 a- * 5: 33 s 5> 0 3 -31 03 3 Li 2 bb 3 tA 3 -2 bo 3 3 _0 o -3 c S) *3 3 J3 3 _3c bo J3 -3 bo O3 -3 Oco La3d * 4O-J 3 3iCn 5 J43Z= \> l5 J3 3 o C3 3 3 co o to o- 12 JZ HJ 3 *3 | to h is h o u s e 3 >. C 3 hi < ~3 *- ^ ~ -n 3 3 c* SL C2 "Tj1 ~--p La3d ^ `5 c" ua> a. r~ 3 Cl. 3 r- y w -a E3 -3 -, IP* . 3 .- JZ 0 Z c bP 3 3w b> rt _0 = -S bo w cc 15 w 33 co Cl bo o 3 15 Z j, vs 3*5 .E,,, pC3 CO *- 3u CO IE 3 32 333u 20 & -3 3 Lad ** o; 3LT *T33 pC 33 3 wt3l3--o 'Zu O3 3 3"72 b *3 SZ> y-- 3 V3C s?> ^ pC 3 V3 bO 3 VC *r > " 3 "3 3 JZ 3 3 2c 3u o -E 333 v. Cl j- 3-u 3 U 03 -43H ,,to cS 43--i 03 3 to 3 to `u 3 JZ 3 -3 to 3 bo 3 3 53 3 u3oos 3 _JZ o rj Ld C3L 3 3 /*-\ 3 '\J 3 bO wom en close to exhaustion. T h a t was one reason Phelps D odge stepped up its appeals to s trik in g w orkers to re tu rn to th e ir jobs. Sim on Peru, a shovcl-and-drill repairm an and crane o p e ra to r at M o re n e i, stayed out five T n t im iu a t io n a n d acts o f violence 1 increased alarm ingly in the M o re n e i area. An autom obile caravan of m ore than a hundred m ilita n ts threw rocks through the w indow s o f n o n -s trik in g w orkers' homes in the adjoining  R 4 1 ^ r 5 "?S I c rJ\ "3ZJ J- u y^ s &c nson, ZJ V - -5 _c 1O bXj ~ j= 5 = "3 >>. J-ZC _>>,. uu ~* Ifj=. C&V ^ ^ ^ ^ -5 u P _rV 1J1> rz y S V, E '* i0_ 't 8 .-- o - V - JZ JZ >, .~> 1 E t: r; c itJT, >V, _>. 1, 5 c -. x 5! ^bXj 5 cw 5 3: t: i-> " rz a t! 15 JZ CQ . ZuJ JZ c, 5 c jr g 4" bfj * c3 >cs. j-- $ _c *-> -c -3 5c z < by telephone b u t was unable to do so. I le then called K inneberg in Phoenix, w ho at th a t m o m e n t was on his way to a m eeting w ith G o ve rn o r Babbitt, who had returned earlier that m o rn in g from his m ediation elforts in C lifto n . w ould he shut down fo r a ten-day " c o o lin g -o ff period." At approxim ately fifteen m inutes before noon the union representatives left the adm inistration b u ild in g w ith copies o f the m em o to he distributed to the m ob and read to them to on the picket lines and gave them ten days to vacate com pany-ow ned housing. Ivvo h u n d re d replacem ent w orkers m arched on the A rizona C apitol that same day to urge the governor to send N ational G uard troops to protect them after "3 y V> c S3 y^ C_ y _ bo a. c y y 3C3L c O cn cy 2 33 y C CO y 33 bo *-> cn c yu >N 3 yo C "5 '> y y `5 % *- - S "I C ~C yi-- cn C/3 u C y c- o 5> 34 y y is to c -- y 25 x c> a * 15 cn y o C s y --r c. Sf -Cn H Oc u^s ope " T5 U y> e " o be 3 to --y: y 34 y E-y y Q PC be "P r -w3 y 33 . 53c is be w r- --r* crn- O >% 33 be 3 Z y ~ /-> c yc y \a 23 y c: _be _ Wx yu G '-= - is ~ 63 77< I03 72 *2 f*y w "3 y -- 34 yy "y y y ' co y u- 3= 3 cr ay -a y y y -3 y E w y y G y "> -o y >j y 343-J 3 X U y O C/3 0 CO 33 bo 3 C O H3 cn 33 U o3 t_ y yc y y y _> LG 'y y yu. 3 " in y Obe "Oy be be 3 33 -= -S -E ^ 3 ^ 33 y y ' y be p 2 33 c -- -j y C 2--S y cn r " 'o > J* '5 Ji y 33 c y 33 * 4-J w 33 -C ? be y cn u y 3 -3w y *3 33 3: 3 C/2 Gy O -C y h-- a 33 33 O ?.s c2 y c *> c y .3 C5 >. 'A iS > 2 ^2 o c y (u au o 4-> -Q --o J3 (73 cn ec < _g" y cr, y be c y to u. &^ >> c e< Ic cn .ti 53 -y "d35 2y _bp o 2 CO 33 V) cy 21 au Ei J" bo c G 33 O bb -i Q c 32 bo 33 .S y - y3 t- 03 Oy y 33 y y 3 c y y cn > '3 O Ui 'O O >> bo rG r^ `w 3 rf. >> bo y y 33 s s-- i-j _y 33 bo a r ay u y r 3aS -2 Y c 4y-1 y . u- y G y J a S ^ -2 i -s 13 < 1 3 333 y I i-E b o 3u 33 "S -o 2 5 15 - 5'> 5 r -e> c be 34 C/3 y cn 3 C/3 C/3 cn C y5-- y -Q LG 33 cn y u y 33 y _c r\ u_ 33 G 'y y be <u c _C y i_ *rr -- 0 be .5 H o E w X y yG Cu y o -c G yO >O y rj Jy s" 1 c _0 "co -o cy y be a c; u C y M c C XoS nC a. S c3 C/5 g a U -C . J3 /3 b X `E y -d c 33 4y-J y ^ 2 C3 jj c y y y > cn r* _>N G tE ^ 3 to c 4^ *C G 33 w " ^co cc o y G y -G c y _c * y y -2 -U y 2 ^u "3 y u< y> Cy a <-> uc C3 3 rt a^ 3 cr o 33 o y -b ^ U v; Jy Cl <T3 3 * 2 0- > .2 ^ Xu a < -c IS) CJ y y y y CO C y co uy* rS) cn _c -C -G tO -O ` u c~ y y 0 c y y 3l3_i 33 3 be y 33 y i^ JZ _Ef g 7c o _v -a `u -= *- y -a T3 J3 O 33 to _ u y y 33 4-J y OiJ cn cn u C cn cn ,,co 33 ^3! " 34 U 4-J G 33 bo <0- CG 0 "c C cn 40-> s y "_tct y CU ? y u O 5 33 *-> y C3 S <u 33 y 0- K 33 CL ^ cn * G* 33 y G 33^ y uu 2 cn O y y ^-1 eo C < L. cn y 33 72 $ y c -S > JX y y 33 o_ y 2 0G y r2 ?2 *2 *2 co y U v c CL 0y be y co c y "3 be S a (j 33 y 33 co CL cn y ai y y _C 33 4-< y h y u -o '-0G y xr ^ c o S 3co In w3 3^ y C y * 3 O >-. O 33 *3 ^323 c * cn 33 y > G 5 G 3 C U C 33 ^2 c _-5c c G 3a! y S -g 2 33 y 3ua*d g S2 cn y~ oQ ^ y ** y * y Ly y c C -Gc G y y ,E 43 c c 12 y 33 O O -3 3 Jybe be 3C (-- --w y3 -u _c X >. cn 2o y < cc "3 ^ cn " T h a t's stupid. I t doesn't m ake sense." L a te r he a d m itte d th a t Scanlon d id the rig h t th in g : I was" lu c k y I wasn't in " w hen he called N e w Y ork. S canlon is a very' b rig h t guy." In re tro sp e ct," mused M oolick, " it worked out beautifully." T h e  w ho participated in the daily struggle at A lorcnci d u rin g the sum m er o f 1983, gives M o o lic k his tine. D ic k p ro v id e d the backbone that" was necessary in those kinds o f situations." o i: CCJL CL offices, in clu d in g chairm anship o f the copper coalition, the fo llo w in g N ovem ber, lb succeed h im , W illia m s selected K ilg a r 11. B all, Jr., the international secretary o f the union, w ho had i '!E -d ~- & B^ --j P C d J3 cCJj V4)j C>J. /-i U o > u S 73 bfj CJ ^D ^P uC <~U j= c 1CcJ) c p= :o bce u ^'3 ^ -o .2 a, c- ^ S jj uo 53 > -5 c '-T- <z. ---b -* 5^Q c ~ -a 4) s. t >-. -P CL "4-> -PS -- 4-1 4-> - j P n r^, oo CU -- a- -- Os O2C O .b 3 -P -T3 E be CPJ 53 g> o cfljl '*' -G ,yi c O _g b -c O>J ^ 2~ .S o to -CCJ _p J2 h "O a NLJ 7* r4 gCoonJ CJ * ,,oun -OO o C. Cy cj P -- 3 i-- CJ 'O CJ 2Oo CuoJ CbJe "<5 BB o c Cl C oj u TM = -g c J= T* ^^ Sk <-- _c 4J rm ,LC_ -- L. 3 CJ N fi >c% bue o cj -r Cp ^ L-l "Cur"J 0 p73 P "OCCJJ c .*2CGuJ_ C(X1J) 0a0 rz oN CJ Z !C>_J O DO 0OW0s CuJ CCUJJ CJ u ib 73 4CCC-J/Jlf oCrcN1 -C4C--J L-- CJ CJ br, *"C o -C ^ CJ CJ be 4-J 6 __ CJ be ^ w 2! CuCJJ J4C-4 'U P< -s - CJ o -P Ttoc On - bij c O '0 w -0 c .'E2 r> <2 IS 4-* t<ju 2CJ Pu O CJ CL CL CJ JZ .5 00 cj -c c u c* ce p to "T3 GCJ S E cT CXJ s I _* ^ rb ^ '1 E S ^ro _=: _2 -o <u cj js c C= o o- --, CbJe iu CJ CCJJ u *r- CCJJ r^n LCSJ < -l: '5- c Gu CJ -4C-J 00 Os o .4CC2i---JJ *CJ ci ""* 2u CCfJi ^ d -a -a *S E c --jot 0w<0u iljIj C*-CJJ c CJ JZ w oo E 'p = j: C cuj u I I a M M K R I I) O N III K A n V II O F A n V I.R S IT Y Chapter Fourteen boCJ cj I &JZ cj JC v vV o v > kA ry V\zr.C>J g_ J c CJ c- .E c- cj o o <oj -43c-4j 33 CJ JZ ? c3 bo -CacJ ba>O ubo 3 => s - J1 I o' I a Uc g cj JZ CL Co bo o o cj _> o g .32 -aC< ^ E <CL 3.3 -Co ^ ,C ^ bo v> 5 co . aCbuJo /C0*0LJ -CCJ 3cu r3ut CJ r- E bo LCOu* 3 -- sCcJ c bco u -- a(U .3-3 53uq_ 30t3o 30b3o bO -r- E* -Ccj -OO cj Ot/-*, > O2CG3CJL cj JZ oOcn LG40--3J Lu3 -cboojo Q -ccj Oh bo 'DaCG>J `au C/5 CJ 3 CJ ccXjj -GGa 00 On 33 *E V35 .5 ' c sCJ <C^UL = C x(S. I 3 -- C *2 L CJ -Ccj 3 OQ Os .3 LC >v t5i co* &0 h! cj (_i... -G -E o JJ JZ y O3 _ W 3- * Jf--*4 " WCuJJ E cj cJj-. cj 3c3j > cj -c cj Q s cj Z .Gcj J+3- JC CJ . CJ - _ 18 i ^<2 2Z sP u .s -c G03 oCo C o -->4> Gjsi o 00 On = -i p s OS aE o CL Uh "3>- 0 u 3 3 2 >O O CUJ C pC c CJ y U U L3= -C3L -- -43-> _CC>JJ 03 CO XOTjn" HH 7'ij-- >> "E3. CJ o UVV55 CGL r; 3 CL VU5 CuJ 00 CJ u -C CCJJ G OU ^ OC C CJ bo CJ bo On 33 i-- 3 O CJ Si g O Q C2 CJ ' 3 (Si 4-- *-E- 3 03 * iJ C/5 .3 CJ JJ u s JZ 5 03 3 uc 03 Nj CJ X "5 opei -- aJ o " CJ 3 3" u 3- C ^ CL Ed E O 3 r- uE CJ u CJ G CJ r- CJ --' JJ zz | ? bO 5c s. bo bo CJ ijo n c 1 lS 33 G JZ -3 -r 3 3- . 3 j,^3 5 O " o bMo ^ JOC^ `Xbc3o ..tE00CJ3L o " y^- c obo 3 OCJ CJ 33C3J 03 o `S5i '3X <ou 0uCL 1 <CuJ /0 bo '> jj u oO '5 JZ CL cc os oCnl c0/35 Cr-J "to S O^ Q w O X JCJ"4OCCcZZl-J1J b3o 'E3 LJ4OboCC-Jo E2 Lh 3bo o H3 -<3oU c4cJ oc Co/5 0C0N JO= J"4b0r33-1to OO0C zO NooO oCXL &o --o -Eo3 ,,C3O/5 oCbL Oou JZ o3 CO r* J0uJ z<L) zL=z -3o BGDU <X -Ow -GS 4) 3--QWE3bOo3O- CL SCJ _-C- >3 b3o SC/5 ^ 3' i J^3-b<C33uO 3pE `C <CCODLL CJ J4S-1 oo O--N -c CJ 03 X *3 OCJ JZ CL cC>J LC L= E v JZ z3Cz 0a C2XuJ Sou3 -E "SE ^s ^CJ -GC JOZ ^ O- .'E3<CuXuL CJ 3033 CJ 03 4-> _2r- Lm a t! -G Cl Lo3C "C03J u OJ 0 -3 <5 >4 -! P L .8 o o$ CLh +^-i .s | Co ^ -^ ,, Gw CJ JZ VCCCuur/*5JJ5 VC5J "XC5J -onl Vbo O XOr1*"ni _LGd LCu,J U0ss-... CuJ 3CJ" >G LuCGJ~ rt _LcCT c/; CJ % CJ bo C5U/J5 1fr CJ -3' Z G 3 CJ 0T0f 33 jZ-Cn O OC CJ -3_" 3 :gCJ gC= a3CC3: "l *E -CCJ CCCCJLL bo C ir~/"-n\ oNeC CJ oc Cl cj J On jr. .*G23 a JZCJ 03 o3s< CJ X U) CJ CJ CJ s >- -4G-1 33 > 02 CJ ,ouX 3 CJ c JZ bo(L> QJJ uL -- H LO3 3 Jb E to -E1 CJ CJ GbO ^ 3 -- bo c x or. 03 3 ocCCcJJ UE"1- CJ vJi -- u -G Cl -3 G E 3 O Z ^ L= X 73 ?E fbor 3 g _333 rvl ^ rem ained o f Phelps D odge Industries were the International and M agnet W ire subsidiaries. T h a t was because A la g n e t W ire was a leader in its industry, a good copper user, and most im p o rta n t of all, a solid m oney-m aker. "pressure to keep th e vessel id lin g along. W e 'd b rin g in th is 3>6o m illio n o r th a t $100 m illio n , ' D urham later recalled, but red ink continued to stain the c o rp o ra tio n 's ledgers. Phelps D o d g e also raised $72.5 m illio n th ro u g h sale o f 2.5 m illio n reported a net loss o f $ 25.7 m illio n (or the first halt of 1984. If that om inous trend continued lor the rest of the year, it w o u ld represent at best only a slight im provem ent over the m u ltim illio n - vice-president, that at the present rate he felt certain the corporation would go under. Such dire forebodings filtered through the ranks of "employees. I rem em ber every day com ing to fro m the fact that at the end o f the year, despite th e large losses re p o rte d in iyS a and iy S ^ , th e c o rp o ra tio n 's lo n g -te rm debt was to percent low er than it had been at the end o! iyS o.' -5 ^ 2 >. sc -- =f rz 3 r: >. - y __ d --* iV- = C* 3 & -- X u" 3 I$ _3 be 3 V r: s.'r y -c 2- "3 3 y . `3 y 2* be c s JZ C"3 2 2 y"5 X e f = a :> -- s. it _p - X "3 II JZ =P .= =- 33 uC x .3 C' y X--> ft P = ^ cj -w3 j= J --1 i! 3 ts - 5 y3 fi _3 3 H 3 n t 2 ^ _ i *2 _2 yu y be r -- 23 X jZ -3 "" 3 :j " 2 f 3 .3 = CJ (r. = $ - I i> -C - ~ 1J n io rrl ril/' 52 a y _3 = " -~ >. - 3. < >. V 1 rz >. V 2r` i= 7. V_. -- i ft x be T\ cz u y 3y CJ _3 b z I 3 j 3 !2 D3 >, 3 2y J t c C *u y - 2 .2 -= r- "i ^5 '" --i 5-- .--X i? jr f S y -- = .-- -i CJ rz 5 y ~c s=y t t s_ '-r y 2= w> -- - -v. 3 c= ---. V --y 22xp 12 g .2 . -3 -X J2 Eh - 3xx >: - br, ^ - 2 - c _ y `w ^ -3 -P ? -ibe C X Dr:! r X 3 *-* . = -r -- X- ^sr CrT -xi> -jr; 3 X ~ -- U U -- 3 * c-- -3 < - y be be 3 ^2 `f ;- jj --j -2- 3 -- CJ P p CJ p = 11 P -C x PS .= f fs 3 r3 y i. 3-- X y Y c a rlc v's dism al forecast, c o rre c t as it tu rn e d out, projected that fo r three m ore years the price o f copper w ould average sixty-live cents per pound, and that was at a tim e when Phelps 3 y _3 y ._ -- 2^ y b3e,J y E --p %= "f c" _ S2 y y hr. "5 t 3 Sy 3 -3 C s: * -1y a E ss f, I3 y > y d be u O -3 'f y ry 3 y 5 y "u 3 Is S- .52 <2 'd S .2 ~3 if y3 C 2h -3 be 3 3 if u c -G y -if 3y3 JZ ff 3 c n 'C & ; c 2 ye 35 -3 > >^* 11 u -c 3- x S u 3 3 -- 3 y 3 y. y- 3 5 3 2 II>. f y 5 "3 3 C3 4- 3gE ly "3 S. : -3 s u 3L y y 33 4y-1 > 3 E ?3 > y- zf c E^ J 332X rz _3 y -3 c .3 y "3 y 3 if 4O^ O be ** 5 y = y if 3 C -3 be 3 25C -- -3 _3 >y% yr\ oc -3 3 d z JZ t-- p y c p 3 y> 3 5, 3 3- y JZ x 13 = if 4_4 3 rz < Cl E1 y 3 C XX 7; = P rz y bj 3 X-- 3 3 y '% cz u >y y M 3= 3 % '5 y be bi 3 y 3 5 3 u 3- y be w C3 .*32 3y -3 > '2 '. S 3 -3 3 >. 13 >. y> 13 l1 y --a z u --' g- & 5" S a by _y J: !J4Z-< 3- -- c; /-n JZ TZ r: ^ JZ 5 X JZ *C -- 'j 3 7Z y 3- > -3 -3 JZ y SS si 11 2 * ^ * x- x- '-s s t -3 & 3- "3 3 y J J .3 ~3 il 3 S. -2 5 ^ -- ----------- :; U3 3 I ra I 3 S 2 .2 < =p th iit again gave h im cause fo r hope. '1 Some of his m ore pessim istic lieutenants-- those w h o had access o n ly to the c o rp o ra tio n 's published reports and not to intim ate details of its hank relationships-- thought the chairm an " T he UTHQHS T*WC Pltfll I VK A u n r o e a n d o u k i i a m becam e close, L U n lik e most Phelps D odge em ployees. --- ~ - -- 3 > o iG -1) V '4-J -C bo C J0 VG 4a-J bd J4C-J G "5 c 4CC-/3J5 ~ .b JuC " mQ c/5 <U 3 "C c <g E "GCJ-- c o u qj _-ci-i V u -G JC bo E a _c O C 4-J 4-J 5 C _ 1) 4_> -G CJ o cc V-) 2s 3 4-J E J^` G -Es-' *^ c 1. CQ! < 5e c ~z ^. S <u= -u f >- I -o _C 2 ^ JG qj -G4-J E <D -SP "O 33 aC-/3 qj ou. cp o OJ _S1 * 375 _c a* E 33 <rt JuC o Q ac/i "33 -C PL, 3J >Cca3n O 5 . *E DOJ -4G-J "C *Gos E JuC P Q _aj c qj G 1) -- u QJ _C %? 3e c > <uu w*-' n' M ^3 >, a, -3 r. O o c b3 r 3 C C 3S -G cu/: qj > '3 u quj O<ux C3 JC w G iu). qr"j ij 4-J J4C-J o <73 o Lj- can G o on `G qj UQh t-i P <-G 0 u 4aM-J; s o t) JC Tj qj ou C i -3 OJ .E 3 <>D> bo <U73 c IE V Ch c o c H3 o s ix h--l "E c o o uo> %oLa -G >. -g c JC .fa u qj G q^ qj *4E-J > qj G -c J3 C E CJ *T!1 GP ^ o^ n1 JoC G >-EG". ^ j=a bp a. C 4-J IE <73 4'U-J C <73 qj 0u g Q can "CC3 qj C Cl S >-, _c -qaj CJ i-- <73 -o <u -G -o ai_ Cxi P *Tj _-rbP"O ^<uu G -G o *-* G3 O Q G C <-2 *G 4c-a VG5 V E j= <j a; JC ,- to cj Ocan Uh O u73 V TO C/5 C--G J O C o c/T qj *G 'J b<UTZ. oCL 4Eq-Jj i CL G qcanj >, Gi u. ar" r c o !U c PL -ou 03 JC 5 HcH V bo T3 O Q C/5 _G- r- pj 4c_4 c -2 ' cCia_Jn CL u t3 qj Q 0 can a. > u -n JC u JJ "E "G a c C3 u<uX O CJ CJ J= ,fbeao E5E CJ X) C/3 c p DC/5 bo bo cGan -o -2 -3 -o 3 _C CL P 0u bo c Oc*-jJ ^c3 a Qh qj a o 0u CL 40-J or c CJ <73 CG OJ cz <u a <73 qj JC U oe -- SG vS C "33 Q 3 CL P ou bo j^* r> o Q jj r* 4-J fa P -G ^ Ou a CL .o M C/5 qj 4-J 33 JC <J J4C_a on qj G *5 ES 1) JC o on a-> "P bco CJ ~ r cj 3 bO 4-j C u *- vX -5 -H E bo c `c E Each team produced a w ritte n report, but m any o f the suggestions-- in clu d in g one calling fo r fo rm in g strategic alliances w ith Japanese com panies-- seemed too drastic at the tim e. M u n ro e q u ie tly set them aside. B ut that was existing obligations and provision fo r fair treatm ent o f employees affected by dow nsizing.' P otentially om inous for the corporations future as an in d e p e n d e n t p ro d u c e r o f c o p p e r was M u n ro e 's request th a t " the value o f the as he explained J u d d 's c ru c ia l ro le . II we d id n 't" do that, we were still just `handaiding ' the com pany." D u rh a m , a " great ca ta lyst" in J u d d 's words, later described the atm osphere w ith in the g ro u p as a " good c o lle g ia l e n v iro n m e n t." I hat .JJ S E_E *!l^i1jI8 1 12 J V i |-- u "3 S * -= jz ^ -- y y -y x JZ CC-J Jr=; --X i -t s ?: a ^ -- z y J>. Z E bp 'E y z yy j= ~rz -E 0 Cl >, bij u 5 i_ E y -- .3 * >. y '- u C- ~ z ? ~rz z > c `Z 8 E if c c. 8 > I * -- I y-- vT " y up rz u be c c 3 : r C -8 =. = tF ; r- -' 5E I? g |J 8-- E= B jf = -- c 3 be "i3 Z > y _be ZE Sf -e E= E ~ >r p * if J-- ?cr -, I z 2 S o C = 5^8 E - 5S --~ s H2 r .' z .=c 4--> -o C p zy be o *: c g_ r Q 0 V c E JJZ E > / = 5 be r-- y c IE a c bl ^ c I c; z rz C <L= * -- -= 2 5 v. l_ ~ J - z zc y- y j= yy E^ 3 E J "g E ^ .P %% c y=- y s y I3 c JE y ^ C y -E yr g- :8 rs _^` E 5 ~ ct: y^ x -E -C JZ ? ^ y --- rz y >^ --> Z 4--< - ^3 be c == -3 8 *H /*v P_y. s J. ~ E y JZ S? *-- y E 3- be y c> u c y= z -2 % r <j 'S -5 -- % '-|-M 3C yEu Ei xrz 5~ Z Eh --* ^ tL 3~ : 1 i 'E E? I S, tlj rc73 w3 5E '-i_ xc J E 3 5 rz 8c [- IE' ryf p TC .x 8 5_ t- y .w t: yu ^ _ z 'E --y cp ;n> Ef r: C ~x &^ '5 'E tg S.-S g Cl yp re q u e st th a t he analyze M o re n c i's costs, o r take" a look at D ouglas." Kventually the tw o men c o n fe rre d hy p h o n e a lm o st every day as Peru supplied Judd w ith reams o f data fo r him to analyze at h o m e on his c o m p u te r a fte r w o rk . I t" -5 C Z "5 c 4-J y -C y a. 15 z V, n ig h sand save ' /n /.'U .'/itf 04 u t it i- iu d u ii .n>ju<. WtlHUW/jJn Ajlittiff y.'f.Htff/ in u f.n rj fyyt.uWfl m i Xn m in n rj ^ uvHfuuipt') metal had no im pact. I he C o m m itte e o f lo v e 's stra te g ic plan suggested num erous waves th a t P helps D o d g e could trim costs. Because the com pany's m in in g and processing operations were losing money, it c b -E cu2. i -5 o 2 VC V OaCs 2 X 77 D c .2 2 2 CJ > a r> rt `5 2E >" *C2 77 2 J2 " ' 1 T3 5? 1. . 3 HEJ. c .X 2 .2 ^ ^ wC? c SP 7: 2 C2 2. w IiC--J V JZ -- a 77 "2 82 35 J5 2 '2 "* t^ i~ c - ~ ~c rx: =^ u: _ bg u, c 5 o ~- " Ij < J?-- -r* ra2- C " ,,c 5y= ~r s= D odge M agnet W ire anil fo r disposing of Phelps D o d g e s 16 p e rce n t in te re s t in S o u th e rn Peru C opper " at the earliest date when tim in g w ould indicate proper values could he realized." fin a lly , am ong the o th e r properties Phelps D odge --' '2 i 1 - 3 G*s i S -if v aH b^/j r:- c s JJ 3 >, V JZ a .= E 7c: ^ =0 <r 3 _ " abJj 5 --** U JZ 77 r- Kj _ it. relum ed to N ew York from the annual A m erican M in in g Congress m eeting in Phoenix. T h e " h u n k e r d o w n " plan, as J u d d lik e d to characterize it, elicited no visible show ol em otion from It was in th e ir m e e tin g ol ( K to b e r 1984, against this backdrop o l had news, that the c o rp o ra tio n 's d ire c to rs a p p ro ve d (he harsh assetsrestructuring plan proposed by the C om m ittee ol unworkable. In anticipation o f his dissenting reaction, some com m ittee m em bers grew concerned that th e ir capable h u t occasionally irascible president w ould he forced to carry out a M u n ro c 's u n e n v ia b le task to relay w o rd o f the change o f presidents to M o o lick, who lie knew "w o u ld he enraged. M o o lic k recalled, W h e n Cieorge came in to m y o ffic e on O c to b e r 3rd 1 Jblj E =z S JZ zz 2 % ib-. X 5E _ = V = -5 J r 1 | | 1 2 * j- = rc& u I i-i 2,5 V -E I }. 1 I s = J 1 1 3 I> a > V > E C JZ CZTj 0 M co -E 2 >Z ^ vu -3 -ET v 3" E U 3 -X E_ s j= : S' ^ --z u % -h E "3 -- zz = 2 " = be. i; -l. t TT ^ u rz > -C ly~:. 2 oc -5 -- 7Z I - >. E "o 2* Sfc -X E-- u C TZ ~z >, -= <- -3 :s !> g <u 2a err cr> Vu 11 <y <si -a s s_ SZ y= "3 e =3 *I ^.E 11 Eo =gs I -E b Ie > bL u *, 5 bJj br, y ~ f = O X ac bo __ .= z E = -> ^- _E -Z C* = "3 rE _= -; = .i _3 _c o^ = _3 "y E E _2 c * -s >, s M rz *TM -E E 'l -- -1- B E V *-E .E IE i E i? rz -- JZ ^ i) M -- a _bD XS ps t J. * JI ~ Cl. S -- ^ .Z -- -E^ u-- ub> .= C -- r; r: "E 5 j Is be X E Er ^ ^ >. > be E >. * i E 2 E 5 '- li .E -- C r= = -J t" !? 7 ? - b E r: X E a; j IE c J _E c & E `u o E- C5 u ^ S- . J. s; e V JZ C- Z rz t J S- tJ HI 3u g ^ > -- / ^ u .5 s /- -rr " be p S V. y iJV- ^EZ .E- w --E - E Z "c =. E ~ be, ji a e = / c a j3 ^53 <Z y. U .E V _E e" ,X 4r g_ "5 -E SL "5 E a Inrgcst U.S. c u p p e r p ro d u c e r, is especiullv vulnerable because it relies on copper to r almost all its revenues." It was d ilh c u lt to see bow Phelps D odge could survive, lam ented an analvst lo r the brokerage firm S m ith Harney, I larris, lou-cosr copper. K inneberg, w ho m aintained a " great deal ol respect" lo r A lunroe over the years, recalled that it the chairm an " had any faults it was because he wanted to be very sure" betore he com m itted 3 = V i-t *5 --O u %N b - Kr 3 A S- s 1 ru' o -3 zr s 3 *5 ~n E= yC -C > CL - I 11 o o. lE _C --v a>y - 3 y y o~, ^ = "y - _- */-- =- 'S 1 i = J> c :> se c s 5 -5 J E. 5 -- "3 -- 5 c I I 3 Er 'i is VV c cr - z 3" -- -5 3 ,y *-- 3 - a \r* & V ,s -- sc j= -- s -T. CL " Oh Er S >, " J= y -- sc Oh J= E = 2 H * % J Iy 2 * h=. y- - J 5 ic 5J 111 S- _3 3 %. - 5 to =.-- &= E I1 C u_ UC 82= 3 S i ; : 32 | 2 H _ .. cj z- __ >. JJ 11 Fc SL rz n Z ^ y ->V v. 20 = .E CL y 5 JZ 3 E & . 1I 2^ -3 - rCL " Iz y -3 s jl 1 2 CL "1y5 y 3 SC - y SL 5 bfj ~ I 1 y J E&, y, = " >. 5 7 Tf _3 = tfj = rf rz Z Z ~ U-- -- CL -- r; --y & ~- > E -- .E y -E fI J- t e ht 7- - E y 1 y w y. E r- ' 5 <:c c .-- -- "3 E , u y y-- '-- t^ 188 ^ -i s ^ cc ~= 3 - -f * C= 2 r: " 2 ^s = c sE y 13 | >. _y In -j y. Sc ~ '7 - -c = 38 Sc. i y z ua y w JZ E -> > ,.c y .3 is" If - '5 c -3 -S -/ v; t;v r: 12 y u '-- y -I y i to = b -- - _c C jj _> _c if y s 25 -E 5. 3 -2 ~ r= JZ c- -- DI E3 IS 2 2" J . X. Z f- 8 c E J w C 1 yu. y > yu. y "s s -i -=7* x S y . '^u- 'y y y -- yi_ 0 vT c u 1 y _3 ^ w | _y E S- 3 E y y < c ' E 5 4 LI 3 y jy. s: /-V 3 a r: j3 -3 C- `E P ' 3 3- s. o^ O C3 <j S -. c\ C r<*\ <5 v. d ~ s. r\ -3 .< .- ^ tz C C -- ZT ij -2C_. c 9 c '-7. ^ = P v /~d\ V JZ ? and 1984 than fro m the (C om m ittee o f Five Plan-- the " flow o f red ink was basically on its way o u t before the com m ittee m et," M u n ro e still the C om m ittee o f Five Plan. W h e n the dust o f the copper crisis o f the 1980s fin a lly settled, it was Phelps D o d ^e alone that stood tall. J t z uu & f-- o z D O tz ( z< cd D E- "_fuclti rcc;ills th a t th e kev to successfully re in v e n tin g the W e s t" was speedy im p le m e n ta tio n o l the "C o m m itte e o f Five P lan. F.veryone was ru n n in g and g u n n in g ," as he describes th e fu rio u s pace o f -S5 bo s <5 l! ir, <5 bo ' **S>* t> C/} < >. -t" -f= -I 3 E rz " - o X _- 3 H Jj 3c " ^ 3 r; " " s. > r- iZ E E ,9 5 _E u 2L tT s? -- s--' ib 3 5 OJ - O> - % '-c ? x - _3 *= S ~ 3 bs - E '* I E---- C b 3 E .5 -3 S .E ^ 3 - '& 1 cj n _3 v. CL 0 Dodg< early wE ^3 3 '5 3 ^ -3 U 3 0> g -52 _ .3 * rz -3 tTj .*Eu 4-J < if 3 X .E 3 U O 3y, Lb>x, r^- 5b j 5 V *5 bii " C 3 G. if- 3 -- i 2'2CL rz ZJ ZTj cost-cutting technology anil succcsslullv diversified in to businesses outside ils la m ilia r terrain of metal m ining. I he in itia l payoff lo r the d ifficu lt w ork of plant, (liv e n the corporations financial plight at the tim e , th e d e cisio n to em brace the new technology was an act of courage by the then (c h a irm a n , leorge .M unroe, w h o displayed s im ila r l\t\ *, - '4^I^r^4i! * ,/v^^l!^^*' $ 2 -i 2 So ** S,-iCSl-V&*,'pS3o-2S>',"8"t b?i Sv>* .-&Ki-*'i'-<..-i -Si-, . refinery recovers gold, silver,, selenium, and te llu riu m a t its slimes treatm ent plant. Income received by Phelps Dodge Sales Company fro m those precious metals constitutes a bonus th a t effectively reduces costs o f copper production by tra d itio n a l sm elting and refining methods. V V ~2 Uo v . oc V 'CJJ "' u 'J v -X zj s- z -t- 'J oc J z ^ E *= * tij ~ tTj 5 -- -- j- v. o oc Cs -- tij C E Obe, o i- Oi is /-*\ C ^x V-Z C oj -- -- > i) c y bjj u or. Jj z, T ^ -- r a; ^ H tr. bfv bJO c-' ~az 'Eo> v y, E, O O q eighty cents per pound to about fifty cents. Iro n ica lly, if Phelps D odge had rushed to embrace the new S X /F .W technology in the 1970s, it w ould not have had the stockpiles o f in general accordance w ith the 1984 C om m ittee o f Five Plan, the w ork o f m in in g and m illin g continued around the clock, every day o f the year, and was aided by com puters that ran equipm ent and. Ray Consolidated Copper Company merged. Two years later, theyjoined Nevada Consolidated .; Company to fo rm a mammoth o u tfit called Nevada Consolidated, which the newly form ed Kennecott Copper Corporation acquired in 1933. . V/ .85; .8 8<a <2 :. ' ^ r. i,, j I * +*4 -:8( $ & >. - 5 &-^r, ~R- .< - S 3' "g.v 5 ^ I1: s :-, ^-**s 50' .RW^ S >- ' o Z'x b-r :tt u- &: O' ;:K- C/5 J--f- 'X\ . S:.SV::,: " |A:' &' Cj.i> A g/" R --R . r'; < ^ kf R -2-; **.. ^ 'h;,' <S5?.; -*SXS.".-- 'k._*, iQ2r-.i *b5*$g-.- 85S* . - >= * ': cJ3 ?. "S'-.- S'1 . -. G' ?SR.:*' s:>r*S1'. 5: b A- .+ Cj '< .*>- -q S js. .- |,ua 2t3H?",.;--.i--Wwsa..>,",'.--:'.^.R?-' >g bO-'^-'-J- s iw?&f n. ................ ^ ' g'r.^1 cs1 - P r-; j.- s- b =! fa; v.g;: .^ ' - 8 = -- it 8: Q 8: P-;f feo 11? *-1+a a 8-. sS -V* 'r. . V V 8 'a :: AJ-: - a.- VT ; <u. -. \R bn . ' 8 .kj M ,`'SRI '- I- & 1 !:; S ->S ^ V'o^ S -Sag A, a Oo Hi 5 3;r$'C/y*>Cj'VHVs'i'5v if I s 1", **' ?&'''& V.-A jin .4si ^ ^*' *> s, / ^J. Q> - ->^v Vn' ,ltw; ff 8 S 51 ? gAif S, < J.S * -g , rs.^^ 9.U ttjV:-` Js' f; 'AJ '' .a>" <S*;'5-:e^v h~ '". , "R 0ql - SSI 14*aRj o ...y. | I r>J* i; 1/ftWKy'.S'.-fS'ViWi!! C> * *Ss j ^ % ^s- ^ i'\ i\A' i;, 1'' -:> *1' ', o f m o n e y ;m<l lo w e re d p ro d u c tio n costs, c o p p e r prices stayed depressed. I hat was fru stra tin g lot SO I IK ), w hich hail problem s ol its ow n w ith d e c lin in g otl prices. A shake-up at Standard O il o l O h io made 1 bTj ^ ;c *>. 11 u X c &22 y E IE -5 X ^ 3 s. r - 2 x 1 2s - d I " 3 J E c --- 3 8 c - 9 x V 2 = 2 cX I 53 y, _ II y3 cX -c 3g aa f s"E 3 J3 " - 5?. -' CJ ^ c 11 i: r- ^ 3n *- 6 B -S' - 3 g 52 Cm _x o -3 r* r3 a ,E JZ o sc 2 3 C- 3 y o .3 _! 3V X 1 JZ X -3 2 ~ .N 2 I'- 0 --C 2^ I3 X li S 9Hill 3 Z >v CJ E3 O=C ^ IE JU -C 5 i 1 2 =2 u _: On C On 1 :2 y 3 y ~ 3 S 5 E i3 33 'J E c- 2O y. 3 X ^r ^ V JZ 2 2 i= ^ -- .- c IE .= J Z 3 =8 = - d iX r: -* C 5 E V 3 *3 g XS 3 3r j= =2 2 2=j 25 c = 'a 52 x *9 *E 5tyv "3 o- It 3 4-* V li ? j= 2 x: ~ p mJ 3 %V 2 "E -- X u 3 E .r UM E Ovcy -3 2 J 1 sill H 2 S3 T* O _E Q o 3 * ?. -V x2 2 == 3-3 3 rz X r; 3 2^ 15 U 'I 2 -- X wo ?l a fl 3 J5 3 w cc ^i 3 Xx i) 3 3 V r: X3 32 8 -3 3 _ sc > S X >. c X :j -- i^ 3 X & = c ri) .r 3TX 3- 0 S/r J= ^ 5? S 2 2 tr. Z "V br, 5= 3 3 s Iw y. O <u y 2 S. c r 'l ^ a sl S. 2 1 2 5 25 5= X -S = E: ^ g y g 3 > > ^2 "3 u S -r " M & |5---- iM 3 = " = = 5 2g X .t: <o y. J-J sc ^2 S 1 'I) V A 22 > b/j 3^ '" -- ' r= S -- 2 c r\ w rz 33 ss >. -E 3 .3 bJj z "5c ""*-* SC c = = -, =XX u C y= S 3- S 2S II O -3 u y ^ S S SI ! V - = _ JZ y. 1 S! J f 85 3 38 3= X. -s: - V -- Ef 1 | O^ 2: 3 2 5 S. !& I 1 <y x: c c Gh = S 2 5) " 15'= w gl-- I B 11 8 % --c -S 2 ^ -- o r: 5: =^3 ? rf- E -3- 2C-3 2C 3 I OC u -3^3 V> X >. v ^ 9 " E > --- 2 ^ CJ ~ 3- _x> iiC 32 S s C 3C y 2 cc V O3 9- fbfj Xtsc. S- -- -- -y. 3CC 1 S a 11 "5 8 23- 3 `5 jj 9 ' - ^ Q J. 2 z I 2 `5 2 2.SP 8S J 1 J 8E E 23 =s is one 1 3V 3 3X 33 rz n y. *VM C3 C3 OJ 3 3 `J X O-- 33r: s U. 43^* 3 a 4- rO= C 9 y 3 3 Xc 3 > V "" 3 3 0 CZ 3 3 V Z '5 y. rz 3 3 O 3 -3 x 3 "8 _3 X M Sb I 3 3 IE 3 y U V, _ 2^ y = S2 5 3U S *" g JZ u -JZ I ZZ 3y; C4- c 3 E 3C - -9 -- 3 339 ox 5 2 c 3 u 2 E >. S C3 t-2 3 = > ji r^, a X c; y d. ~ ^ UX 3 u 4o--i -- 2 3rz zr 3rz s: g t X E. VV XX 3 rz 3 X3 LT! r; 3 C X >. X^ *3 b/j " CC mE D m ore to im p le m e n t p o llu tio n controls. A series of p ro w lig h ts fu rth e r d ra in e d K e n n e c o tt's corporate revenues and left it strapped tor cash. At its (iliin o facility, the decade ol the tySos cm? o f various sizes, more than 2 miles ofstumlarilgaiifie track, a machine shop, m ill, compilin' homes, /m ilbo/inlw ^- tnnl roomi/ift houses. 3 0 X 1 1 =1 5r "V i Tsntm^r j. CJ O x: jz - ' - :j ze " i? X-- .1 > -c 5- uc x t> E J= -- QJ x= -- c w c o 'dr I lj y: o I p= z C-- xo s= =- ", c 3 C> Sc e .1 C j: .ti cj < bfj z S I-J z 5 * = 3 II :c2 Z_ CJ c X> J' c c V .Z c CJ . *' E v tr. E b cj -c 22 - cj tX. E CJ = sf jz < E. ~ > - ~r ~ ^ r- S- S. d S " ~n C`13 u- bEr, ^ u "E M~ E- or, jz -5 -' p * J-Z EI Jc s 5 -E 5- Af e r; br> JZ 2L -Z s-/ x tr. -- r: 2 b z -x -- c ^ th JZfj s X X " - C 1 i 1d -U E E c_ C E cj x `i ~ >- _ '^r' 3 j~. Co- -3s .r v > jz 'z .z br. cj z- x x ^ E5 D^ _ -z br, ~ uZ ^* C 1 t; '> 5 i<li Mfi T. CJ 5 ,= ll X-- u- > Xc --u ~a JZ -- 0. z -X' -t z> y -- bj r' E -- *rr x i) 2s s ^i s^ - tSj s. " x 'C ^ Cl | S - 8 -' 'E LA "E- - '5 i -- x br 1-0 ^E 5 <S- >. '1 L > bij x lb - '- _x r - J/- r xE _ *" 5 -I B. X J 5 Jf, E_ S u 1 Cr: -->> c C_ 8 p ^ SL _E 1 EX O JZ "3 uCJ E Vi E Ml s_ - 7. E d. -3 = iCfJ --s_ CCJj ! -5 = I I 5X 2) ^ -I- i J >. -- ^ i ^= si - -j s - __ c b/. x 'i E -- j 5 5 i! i jE 3l H X tr = ^ ^ - jj = fl -%s OE 1 * E 1 > J= o S ^ E u -3 cEz -- ^ E -3 C CJ S3 oH --: I i }sCuJ c 1 -s' -- x; X 2 5 EZ E---- inn=j = -5 E ^3 " -- . < LA -- rz XTj --' I '= 2 C .= `u tr. bp 5 o ^ . - Sc -- - _ i -5' -E < e: X- E 5 -- ' --, _x -- " = A" e v SI?2_! - t r: ~ ~ CJ -- .2 = O j= i) x. 3< ;~ EE sc " E 5- P*u 22 E b JZ j_i `E- .= c E. z 3 t: > ,_s ^ 5_ x ^ a p ro je cts. A t the e o rp o r.itio n s iyX<f n n n iitil m eeting, one shareholder pointedly asked the new p ie s id e n t, ( i . R obert D u rh a m , 1low can" \o n assure stockholders that yon w ill he m ore successful this tim e around?" I lis response was, b2rc: jzCJ --suo Jw2o= ic^j -c _3 |1 s> J-g 0 s 2;= -- -G G g cj "Oz c .- ir, CZ Z> 'FOcj % Ju O= 8" cj o ? =2 EL G. -,3J 3O z _ yG "3 3 cj 5a 33 S 2* cE bu-o CJ -6 " 3z IJ X -CCJ 0| x5 ob -51 f- ^ M :I,,;!i iJi ! ^a iS3 s cz I S I 1<CJ CJ "" tc;z .2 ^ o - ~r -- ct g cj = -E Z c cj -< C _2 -G 'x. hx~. =V>" i ' "0z= zc . I1i Cj S -E X O jfl *-* - c CJ "5u 3 c ^G " - c s>, g=t = "5 3. j>. zu p= --' ~r. _p _ ~J2cZ.j a s t S. Z u s j; y ~r- -Z 9 ~ CT r H -5 y ix 3S 3. X 32 CE-- ~5 u2 --c '-2.2 y\ 3 -X -c>z c2or Aw -_Z Z bf, z E - n g-s CJ z-- u cr: --J o : .2 ^ 111? -p ~ o i E 7'A C- 3 -- P <Xas z5 x" '=-- c <jS 2? X BGJ- "S Z X -- c w ', ^o *S.- ?_ 2 cj -Ey. yr-; --3 "P? y, "Jx bi; -- u c 0= = C -- ^ u. --.2 z ~zk E zi t1- 5 6 c. E 5 A nd th e re \v;ts s till m o re to eoine. In tyyX [ helps' D otltje lidded unother sipnifie.int copper property in the area w hen it purchased (lo h re A lin in g C o m p a n y fo r a p p ro x im a te ly $ i 15 m illio n and thus gained the C o n tin e n ta l property, which *: 2i I 1^o ^Z b JS-3j~ 11 I. E II 1 3*y . 3> J fE= y < - "3 ~ i2 ^ I ^o - -= 1 11E il1 E JZ Z--S~ 5 E2 c % sO * 5 -z S5 H9-. M y" -- JP "nb" bGo s c c ~C^z -- -3 ~ -- c C il <-- U--i J ----"b '*y> --I: 2r2 o 5 00 X` Mti w -o5 8G. c X3 c ^-i G3 _Obo _ Z t" " -Gs." CJ X >2- X T = -u~-. bfj oo j S- c x. ^ ~Z 3- > SJ c: 0 '5 r- 5 'I z 1 ' 1 `u S- E fe S Vz uo 3 -P^T' ~^ 3 'c ' - 0 . -X VJ -3 -2 X, 1z5 z -->. --z >. Z ij -Ccj o s 8 X- b 2 c Hj y br. t*. H 5 d -CGt: = I .3 c ^ m- x8 3' rz rx- c>c Go *G= G & 3 ' C^ 9=- c' _3 `Z 3 = x_b0 _gz '> 8 " s ?r 5 S < II JZ I Cl. = 5o 11^ 2|1 tcCEtj >D. E . 3 E= E ~Cz-jJr G i 'Z = ^5 y = ; 5 J? 9, P c=2o^ -I ? CJ z bo i' - 5 o - 3 CJ bo 3 %- 8E =^ = Z X "B g b G- C- Z 2 Czz= ' Jo= 2 w ith m olecules ol rubber to increase resistance to te a rin g and abrasion and also to increase the stilln e ss o f ru b b e r com pounds. 1'hat is w h y ca rb o n black is essential to all tvpes ol m echanical ru b b e r goods. such as gaskets, hoses, c o n v c v o r supplier. A fte r a decade as part o l P helps D o d g e , how has ( iolum hian changed? l-'or one th in g , emphasis on salctv in C olum bian's several plants increased noticeably. It also discovered V SSSSSBSZSBB w ork ethic, horli u tiliz e the talents of m any engineers, and both are technology driven. And. stresses C olum bian's President John I . W alsh, " we must rclig io u slv pav a tte n tio n to o u r costs. and we have been th ro u g h a series o f to u g h black have m uch flu tte r business cycles than copper, (fo o d rimes o r bad, people still buy tires, In fact, bv the late iy p o s ca rb o n black sales accounted lo r such a rapidly grow ing percentage ol Phelps D odge earnings d u rin g a tim e ol low !'s&r'4i'-'?`' IV -I `fe .;<- ^ %v -4 is V. - j ^ ci'- \fe> ^ S &> <** . *->&.. $. a &?: ^ a ^ * "2j" - W- ^ 22. - "S E?sTK*-.* -g2f2t - 8? ' * .s-' 1s = -S L ^ S' 8 ^ "I *> ` |; . - u:. "*' a P' ^ ' s' f< -ft 22 $ I S s -2f2t &*f 2S- K e^3a ia <^; 52 -- - -22* v55*: 8 ts <* a` " "? -ft 22 k o, I? a1 2552 o 1 * -ft js s o 1 * -fkti --22* . K-- IP o $220 -ft "2^20 b5g2O- o -ft "22 52 fc22 .. 52.,. S' ^ 222 *l< - 5*2* .-. .52 Q Sn <u - -ft.. rs* & jft Gh <S , ^ -I I -S ?4 | ts s ba S-I < b o3 . Si > | 0\ On On S.-; -OV /'. to... _o 3 ac 3 <v G TS O'- to J3 u c . - X) <Gu B O3 -GCL "0 U <u JZ h -o G CQ :'d4iS|iHs442f l^f-.* if ; -S'#ef<j'| -S' ;-t a -s";-3r 4^ir;^:v^;i a.. a t a "S - -I I | ^ " ;R r s- ^ ^'.wOkS **'52.^ -Cs If ' t v> * <- '[,*'1 u s* ^4 > tv* f-.'v'.^f".,- -<3 ' S' . CO ' 22-' g -| -CL 4Q ^H "Q ^2 s -ft I 22 S' ^1 I ?V Nft Cj S- "S Cj 52 .25 co "22 52 3 - 22 ' <3' . 52 fi .52 (S ?^S IS ** 52 ^5 t 22 Oo CN -cs 9 I? .52 O -ft ^ ?** s i; 22 Cj 'O "S On 22 G |n e- r8 r8 I Jj & >* **< veS Oo O b. O -ft s- 22 cu ft ^,*r vv^. s 1 y* s **t\ * sr "/ * 4 *&*' f** m. j** . *-/> h 1 4 4 ou `G ' U n it d e ve lo p m e n t ;)I firm e d tile w isdom o l the diversihention stm tegy developed h\- the C om m ittee o f Five hack in ipS-p'" lI ^ ' r in c i y 8 7, Phelps D odge ( lo rp o m tio n 1 ussim ihited lio th C o lu m b ia n C hem icalsJ and ( d iin o A lines com panies ip iic k lv and sm oothly in to its fam ily ot operations. T h e tw o -= z - |. 3 Cf. >, -- 5 -5 E E -E PP bb ^ J O >. x C o -- -- 5 v- y s. oo -1~ -S c --D -y. e --3 v jz s- = ~3 X~ ~ 5 1= -- u = - 3? 11?]=' ~ - *, '= = --2 d = if. - .. JJ E b> a 11 i I i 1 ---- J t^ *j Zc- -3 it, - _ x5 '7v. - I ,J 5 ^ jJ 5=1' 2 U 1 -- cr* ~ 2 c 5 -i: 'V. b/j -- 3 - " = 511 = 3 -=N = fc 3 '- ob 2 0 " - a c _e u si -- 2 >, = 'ib tc y- = 5 C* Z i--' --3 S B IE = Z -* x ---* -- -- > ^ o P "1 '^- P uE= = X CJ z .b 3 it 5 i - :iiUiltr! 0 - -= .=Z .5 I~ :-. . S :i ^ uP V x-- 5J -M ^ 5i :j j= -- br. ^3 x Z Z P u II = 3 2 'I -? 32 -- if. z -- 1 d ;.V^ ..5 - 5- "i: = ~ y. Z E -- r u X i- x y. > -/' " = " b E o 3 .r c s-/ 3 3 Pzr. --^ "x c, " -- -C uu j- -< :* y u -Z n tc rp ris c -, n ic k e l- , T^ -- ' C` 5 y F X-- b wu ,c 3 _S* . C ^ f- r* rz ` I ICJ -C 2- < ub. b$ CJ i = 3 jz b - ? 5 .b =C 3: S -= 22 5 -" A x -, -> .X , T! o " .3 ' 1 . - 1= C 1 2 "3 -5 '-S '-S "y - _c i> 23 -- -- -J i= :* ^ if. .3 ^' -s *C_ %d . 5 r- bJ y. b S ,E 1t >. '- = = . 2 if. > s-- ~S n C JL 1 is z ---/ y+-. 26 Zj . rz E II ^ rr 2S 1 -i - ,,: . * bfj W .wz-- /t--: "--r: r: ~ u d 5 ~V= a? ; ?. = c" < > , C E z Z "= zbr- Z_ - C 2 jxc h > -- 5C = -- z C c= -z v. 5 ~6 -- = c PJ. S J - 1 2 f W :- -b 5 J -T d- S y B bfj -o" 5'-fi -C~ 5 - a. & 1 V 11 C .X g ^ .b E .'1E = 'H ^ 8 r>l o b gj s 1 brj b > -SP ^/r ^ ` X Z 'P > C JZ ! ^ I B^ 1 = 3? z < -7 -- 5H S C rxj! ^o v: x -= 'A ~ S 3 ^' 3c .2c bfj S ^ d ^ .E ~ -- c u 11 ^ 9- E o ^ p 3| l> Hb _c ~ _*p X & c * acf oc *5 t- ^x; C"J " -C tx --4_ ^ x X. X = " r-T , ij S' = E b x *2 ^i! 3i & cj E s3 f C! c -l=t. --v D t: 2- = y P 5^5= X <uf -H --H, " 3 E*_ *l> - | wo = 5 -^c 11 1- E --^ CJ -- S . bx a & ,E t '~Z 3' b. E 7 .= t be 1 5 .E % JL 2E E 52 s I -= * I IE 1l = -3 E 3 2 bT u3 u 5 V. w xP i F1 > ' n-rE> E r2zX -3 L- s <1 S: ^x. 5 'u V i "i --^ 1i br, 5 .= xE ^-- |.| 5 y 3 lE y. 7" r: jz Cc ^ u c `C 2 "X- "3 -- re I rz I S' l> E ~ 2X - e r5 - o >. I ->s s ^S: Ec c /H 2 3 "3 br. "'J cu - -- &r: b 2 ^ ^ 2_ " . r- o ' = cr "3 -2 2 h ;. 5 -: * 1 c. ~' 1F 3 I l2 lE E cL x> bo 0 -2 >: L- . J*z- 2 ,,x J= 2-----2 E S > = ssc-^a - = ' =i: i S'i ~- b-j-J ~c -c ^ tC> II- 7" sd Ew -3- E E o. ^ g =2 C5 Hi y iP 5 bfj v. CL C K ennecntt, although hv the tim e o f W o rld W ar I it had (lulled ahead o f Kenneeott in its eopperp ro d u c in g capacity. D u rin g the d iffic u lt years <>l the 1920s it dropped hack again. Alas fo r Anaeonda, its greatest properties were located in m illio n ; Kennecott lost $150 m illio n . W orse still, Anaeonda had borrow ed heavily fro m N ew York lenders to expand its h o ld in g s in (,h ile and had counted on its (.h ile a n p ro fits to repay those loans, lb pay o il us hankers, the com pany shed operations. I!v iy 8 6 the oil c o m p ilin ' hnd exited h im l-ro c k m in in g 'in u l sold o il Anncondnx re m n in in g nssets. O nce the in d u s trv lender, Anneondn censed to exist (th o u g h ARC X ) hiul to ret it i 11 its c n v iro n m e n tn l lin h ililic s ). D yz -J -r ^ -c v tfj M o u n ta in M in e n il D evelopm ent C o m p ilin ' in S oulli A lricn mul S oullicrn Pern Copper. Now D u rh n m u n tile d 10 s lrc n m lin c Phelps D odge ilse lt. In S eptem ber k ;NS he d iv id e d it in to tw o operating divisions, eitch w it h d istin ct goitls nnd uz tf) d a E * go OO zfj tfj -- >. v 0ii)j -- - -j rfJ _c _ -JZ - V it. ^ c o " A lte r D urham took early re tire m e n t, Yearley l.eeamc chairm an and c h ie f executive o ffice r and Judd became president and ch ie f operating o ffice r. A t the tim e J u d d c o n tin u e d to serve as president o f Phelps D o d g e A lin in g C om pany. I I is O C: rfj i *= is ~ c it, c 5 iXj tfj r- CJ i:jf. t/j V. ^ CJ 13 a =J B - eliose to re tire at age liltv -tw o heeatise lie developed debilitating, even lile-threatening, cluster headaches. T h e m alady began in t<;St, sh o rtly a lte r he moved to N ew York, and disappeared six m o n th s a lte r he re tire d , but Ju d d U ifj P ^ ; ifj o c. C% D _E -C rr t/j VO, V it 5 y it CJ y y it x 9 y l) 4- 5y y S' Ei y y C~ U y z O h <pa o P z p Oh PS o c pp w U PC w c/5 oa p o Z Qz pa <C/5 O, W P w K CP J x w 5O 6 y. a- ybi*o y G3 O CL u y % CL yy O'Cr m rt* m I"- -i >* N OC irs i/s ooo.r^r^so^oso r^ - ^ Mooddddd-& 205-7 vu: CZ oO "O Lo- oo c (At a o ys 2: r*-i r^s ro urs 00 iv^. rf M Os Os VC rj- r*s - NO ^ 6Ms S^O O ' . W N r<s 'sh l/"5 VO r-. 00 Os 00 00 00 00 00 00 00 00 00 00 Os Os Os Os Os Os c\ Os Os Os HH, M. M hH M " 3c y b* oy = c - _3 = j* 8 y I-*** c iy, br, G * 1 -s I b Crs?g l8a = 5Icy ted Xy Q G .E " J. c rz y y -G E ^ "G >. s. 3 % y. > bJj 1= y 13 'P s c 2y H. c G c G^ > & C 75 &c J \y js G - Cc o Tf o %% E~2 >* e cl 9 tt br, .= _ y 'e T3 u-- y g< C* *- y* " -= bJj Cn y -G C -G 1 GS. C --y i -G _y y -- c IE fV. us r: s E ij y < -e cC s^ y> ,E- = - C C y p^ r>. cc ? Cn iJ '5 X X y-- G~E `u . y J ya c "5^ ~ -- - -G 'ZL X e --. - ~z yy t & ~ y^ : -5 *? i- E= - 1 C y _Z 3 5 ifj '7. G 3" uG y e '~ i it, E _E 'E "5r, 5 y _e t: E '-- r: -- -- - ::1 -E i]c E -* s_ 11 P - r =y H_ CL -X r = yE 5 :- ! Sv "i ~^ t=~ -Oy CZ ,, r: X X s =- GEE - if 6 rv-i ^ CL G-- *yr; . ce v. .> * y J- X 7* ?i b ~X ~ 2- - tfj " j ^o 5 z~ 5 5 .1> B - -i $ c 1 is U3 y^ c 3 jr: O 4- 'i | 5 E E "EE E= -- w rz ^ :> ^E? EJ| 1 'C TZ JJ c B > s o f" C ^ -5 >=. ^- ^5 11 - W ^ 3 E Si f G, J -1 y tx G cG y *G E G E -S C 3 ;g 'E -cc & CL x 5 Jr Ey xg- C z *y c G -E -Cy Mia s tfj X bfj IE y yy X o v J= E c r- P -i CL x C w- G- CL y '; 3 I S id y *3 `C ^ Cs X w a" - rr s- X" Eij j 3-- =B | G^ G" >. E & G Es 3 E C b/j G " r-- 3^ G"G "3 5 ^ 3E yX Cr C B1 <4= y yy JC JZ V z s 2 o UJ oo Q at U cu z at uj H at Z UJ UJ Pu pu < o QQ ou --1 a O o at tr, U y .-- V CJ ~ o -- ~ U4 or, Cj S. *** f*N s I I< M in in g C o m p a n y ranked a m o n g Japan's m a jo r m in in g and sm e ltin g enterprises; its S u m ito m o K le c tric In d u s trie s was Ja p a n's largest m aker o f electric wires and cables. In short, because th e ir p ro d u c tio n .1 O v e r the years, Phelps D odge had produced c o p p e r at M o re n c i in various form s: in itia lly as loaflike ingots that came Irom smelters located in changes fo r ore transport out o f the mine. Back in 1980, Phelps D odge halted production at its M e tca lf m ine and supplied to both the M o rcn ci and M e tca lf m ills from ore its total, Phelps Dodge M in in g C om pany em ployed some sixty live hundred people in live countries, T h e most im portant location outside the U nited States w as C h ile , w here the a llia n ce firs t fo rg e d m ajor new opportunities in the Southwest a century earlier. In addition, discovery of Candelaria highlighted the grow ing sophistication o f Phelps D odge exploration personnel. because th a t is supposedly h o w fa r a person can run before being felled by its poisonous bite. Sure enough, as th e y slow ly proceeded deep in to the m ine, th e ir guide suddenly yelled out " In vo ka !" the Z u lu w o rd fo r snake. Just ahead in -- u=u t= CJ i si -,-1? 3 = W> *1 * C c >. Gcr E cj -" > = ' *u II ~ 2 -- CL 3 '-" CJ .1 3 > - 7Z CJ CJ 3 2E 1. '3 cc _C '" 3 - .E *> JGx -4- ~ _ g ^ -- X. -- Cj ~ JG _E -- CJ I I i -5 3 3:=L J= 3J Cv -3 i I 54 5 5 V 5JG -G " cl a 2 >% 2 S E cj 3 B 3 -- cj > -5 1 r: -- 1 TZ ^ <u a - bo S! 5 c ^ c J: ^ 0 E E 52 bij 2 = H a ___ -I E r: -- c &= " r v_ CJ -E ^1 Zz. Gw 6E cj C E^ ~ cj _ ? ~~Z CJ . ^ -5 S " cj - bJl G sV g c & s 1 III 5*2 5 -1 '5tXj >, I J.: 1 i . -* b ?: <j b pun e le c t ll()\V 1 th e c 3 el 2 E E hG H CJ 1" 1 8 6 I 1 1 1 %sc Eb -* < 1. jS --! c -- ; 2 cj .2 E ~E 5j _ x. J rsh -g ~ C cj G * u = - 3 g = &' I "c3j bc *> u CJ CJ 11 cj G *s -- CJ `-- o 31 CJ Cj -> " ~ `5 C- cj CJ "3 > "E 55 d c 3 c uT -G " > r: E CJ L; MC G r: *vT c; Cl bx. _G Cj "CJ i CJ ~ cl ^- r- CJ JG el ut \-- G 3 >. C 3 CJ ? 3 ^ v. rz j! = iL ^ 8 3 -n X. G G V. *u - G CJ Cj 3 ^E r- -G xG X - *0 * G -r cj CJ G U- w E- CJ G CJ 5. - Cj X. -- C- G ^ C^ CJ '" urz. G CJ 2 u CJ ^ J 3 CJ Lj _G GG -- 5 G X CJ P i " "x .= = = ~5 E .= - cj G cj -E ^ >c G u = CJ w ^ br G -Jj - zZ R V " _ CJ r^= = r: "3 CJ Z U- 0 X. X. CJ ^ CJ '_ <8 -G r: * = G3 J1 CJ CJ "G J- " G "E -5 ^ bJj 5 G -3 5 >, J: rz zj Z- ft = &' v. -- 3c __ CJ 0= 1e nE &E CJ o -G 5 2C g lo b a l sense e x p lo ra tio n is a lo sin g gam e, but there are plat ers w h o are consistently successful, consistently adding value to the company, and w e're one of th e m ." Successful exploration, fu rth e rm o re , requires both sustained effort and a came to believe that only Australia and South A frica o ffe re d reasonable assurance that if it located a p ro m is in g m in e ra l deposit it w ould he allowed to develop it. A bout th irty m iles from the Australian degrees in geology from rhe U niversity o f the W itw atersrand. For Rvan the search fo r good ore bodies was m ore than an intellectual pursuit; it was his personal passion. I le loved reading, Black /M ountain M in e ra l D evelopm ent C om pany (Pty.), Utd. T h e m ine came in to lu ll production in late 1979. T h o u g h Black M o u n ta in never was the lucrative property Phelps D odge o rig in a lly tid in g and his enthusiastic team o l geologists and o th e r specialists w ho not only located the Black M o u n ta in deposits in S outh .Africa hut also the (Candelaria deposit in Chile, w h ic h tu rn e d o u t to( 3= x 5 ?E I 1*- 2 I --3 0 "3 jj be be z 15 L- re - ii =-5 y E a S. = yif-^ ;c 5 B* E 2i I vc > 3 3 3 "3 < N Jz JZ 2 .E ZZ 3 E S i --_e a1 = _E < _y = 5 - ~ X X 3 E 3 L. 2- rz >3 t x S B Z be -- 3c z '- .3 3 "" -- CJ =* jz C /~s CL w 3 c E r: r\ 2^ ;3 n^ 3 JZ z_ 3s 3* ^ 7-=* z _Cr _rx: cX 3 .= = ---> cj = "5 'C y <JE be be jr < -o 2 X "3 X rz i-- Z 3 X _x ** -- 22 x S u_ 3 rz 3 R s E __ I 3 "3 c "3! C3 JZ ,0 JZ . CJ ~ - zz * 3X" cj E be c >. -< rz ~J r~ ' n, cc ^ rz rz 3 22 _ CJ 3 --c .5 x c --' -- be __"_ JZ 3 rz vT & Ju = ^I _3 w ~3 bJ c -b = E zbe c 7C ~ 3 JZ i -J: _ JZ > 3z 5 If z 13X 3 = ' E V. ^ -- % S be b 3 &- '-- _a: ^u -- -<= 3 22 -2 * ZX 3 -ZT H 5- CJ X *- V. vc rz ` C n y > r\ c rz 1 i E - rz r: >. & -- y 3 c: be X X X CJ -3 3 s 3 ' Z. 3 L_ r-- |u JZ 0 /~N s 3 i_ 3u CJ 1re 22 JZ5 < 113 JZ a ZL C- Z-- nC = 3 8y 3 u ~3 3y 3 3 3 2J rz .0 rj- DX JZ E i 3 3 3 XX VC X ~ 3 - 5. C- >c 3 E: u --3 z. w ord designating the color oi earth-- red, brow nish, vellow -- form ed hv decom position ol an outcrop o l iron com pounds and often a ttood in d ic a to r of copper and o th e r metals. K a rlie r 3 JJ 3 S3 ^ 1 23X > vc ib 1E 12r05: .3- "cCL | >- 5r, ji E7.CJ " CJ -3 3 ~ m c c rtn in . I le w a s O il B la c k E_ -= 22 c i 7 s y3 -5E 1 t-- =&be r be : "5 -- C </. _. "= v. cj -f= -3 b* ^ -3 X h- CL M C _> c 3 u 0 X 3 cj 2s* s 8 * = u 3 | 3 _3 3 Zj = ^ 7, 3 > 3 JZ 3 I 3 -5 is 'JZ 3 rf JJ X 3 L. 3 JZ c l-- ' E X 3 3 __ 3 7 .8 a ^ >-- vc 3 -i _3 3 3 3 3 !_ V. 3 3 -3 S > 3 >, 3 !_ _3 i JZ P x_ be rz Z 3 r: be 3 X X 5 > 2b: x 3 .= _3 3 u. re 3 j JZ -3 X -Z c: '5 X 3 i_ 3 t-- JZ 3 JZ be u rz s 3 ___ 3 -3 3 3 33 JZ X 3 3 vc Jfc t: JZ V. y E -- E = u E. 8 ' 5 r > y^ I5 =s J .3 j~. i--s 3 > > 3 z E O 1^ "3i 3 SC = CE 2 &- a. XxE S 3 3 .3 J- JJ 3 GJ 3 zj S 5s! Q == ^ s ^ i^ -c i5 X rz > -- J' E x IIw rz 53 3 Sc s | > c 223 I C Cl 3 E >. a ^ tTj JA O ii 3 ^ as = s 1-i 3 !_ ~ jj c 3 n = -5 8 3 c w 3 i-> 3 x5c .E 3 C* Jz J < .S X CL R EE 3^ 3be = 3 28 3be -- , rz H b: tE rz -- ^3 \r. > 30 JZ JZ *-> vc 3 ^ p. 5 > >. X s3 re re rz x -- ^ r, E br 3 X CN 2 'E rj X 3 ___ <s. rz s. > g .3 3 3C cc "" 3 --H E 4--< u3 0c: -- 3 3 r-- JZ X is "" III | 1=J| U >. y E cs y ^X3 s rz -j-. 8 3 '-- zc .As fo r A naconda, it d e riv e d o n ly 22 percent- o f its copper p ro d u ctio n and o n ly 12 percent of its total p ro fits fro m w ith in the U n ite d States, t'orbes noted that Phelps D odges fortunes, w hich 4; cV. O 1s 2. z= 2 2 " -- ~z ' 0 = VC 2 u a E 5. vz D = rz tp 7Z ir, 3= -b 'Efc = _2 i33-> LJ Z> jz 8377 4333-a bb "3 x> Bz 77 ~ z 3^ 3 E zz' 33 a "a > Z u_ a i^ ou -II b= c d 5i f,J E.1 CJ IE 77 5 rf E 'J *-- br, -- z J C_ 3 8 1 s. 77 ^ ^ -p 2 fi- i; bo --*" -3u = II * ^2- ^I 5 -- a -n 1S | ill = "2 E 1 c- 2 u - II 5 "E B -5 ~ CJ .32 IE ? lx -- cj >. ^ 'Eh ^ ""Z 4^ c= '-- CJ a. d= --- ^x a- v. -- " ^ P5 a ^ 1y t~- E > to S 5 tE w a L b 'z C. u C 8 *. S M1 la? S 2 --Z^ JWy3 2 c b: "3 3 0 bo = = i 2 a z 23 ~ a e- S J= CJ .2 i -S u cj g.- = 2 st - c z a * 'c s iij -3J '5 ' An ~ AC X ' -- X S----- bo S- f _ O c_ a >. Jr- = I | _bfj a a * X yE a a ^ a -i sC- co 5-- AC -- - a =5 3 3b- E= 1 =5 = to 2 s I |I b3O i- I o a Z0 : ` -</ at - ^- - a < -- 77 ^ 5 2 >. x 5 a " z. - jz - ^s 5y-. a b-. ~ e 11 = ~ i -E c 2 c c E^ l--. -a--;. -br- 0s 3 a2 a 3 --- 3 E c 3 "3 I= = -- ar "^ t r" = r`1 'K| " 'O ^ 2 3 '5rj -. E a _E L- < X 3 30 43-a c E > Sj V. 'E s 3 7^ 3 > 2 1- CL 3 JZ 1 '5 b*- J*JJ3. -4437----71< ij u > .2_vC3l. V | 4V-a. z& <5 &a Xu 'Ll ~E ^ Eh 33 E &* 33 2J -3CJ 3 bL 3 7u; OX* b 03 J>Z V 77 'u 3 -E b j5 3 E- a -- - CJ c S -c ba ic s E 77>J; -3 E b &>tJ 3V E-33 V. 4--1 2 "CExJ . '--~5 9z > .E C- 5 -- 'Jz =77 bxj > < X -S77 =2 '-S - 3- -a> 43V-J 50u < c 1 -r. 'Ct r--S' 'S--o 0u CJ 0 CJ II jl > Si: jz a- = c t- C 32 > -- b3o 377 1_i: ur _>, L V jz h E > | bV c 21-J zVz ? "3 5 V77. s 77 -- iEj iJ r t: -- "3 3 b>a J1I 2J V 2 "E ? E^ 2 :2 -a = "S ~z c3 '5c, "= ^3 ^2 _ E .3 -' "a 3~ - Ea v: d ' 3 i 0I O 77 - 1i "c D D -5 J bs c 2 -3 3 3 u*J - = y s -= f d1 5 _ u ^-t Ea ' a. 3 c t 5 : " 377 Z = C _c -Z U E a -E z S 3 -- '~>3 'L 7: u tt:rj -C ^"r^Eu757 ^ -- W -- 5 ^ E ZZ --a .E * Ej 3 XX CJ E CC9 ^X c= t 11 V 3 i i: 3= o 3 3 cCl. C -i: "3 737 p b S< 3i> --3 -C3 u 5 c V X77 foe 3b r > ' = x H. c C 5 t -y 5 O tfj 3 tv .5 8 3 ^ >, 333 11 ZJ - 3-- 3*~ ^ iu) u*-^ --. 3c Si = 1E i 2 = s 2 E ti E -E c--. 7-7 T a 2. and o n g o in g saga o f m in in g in an area w here the hunt fo r copper and other metals was alreadv u n d e r wav hv the earlv n in e te e n th ce n tu ry. I?y the late 18 $os, C h ile 's n u m e ro u s m in e s and sm e lte rs ' I 11k s t o r y o f ( .andelaria, as is alw at s tru e' 1 at P helps D o d tte , is re a lly th a t of in d iv id u a ls w o rk in g to make things happen. It begins in the late tyyos when, at the urging of \ \ illiam k . y .1 _"_ Vu. "3 ' be _ = r. i?-- u. -E c y > w C- t =3 -2 9 5 b Ji s o ?S II | |E nE . -z C CC tfv .,; C -E 9 x .b S -= ^ A -3 '- yX -- 11 y S EC -- `E 5 Fe y 9 fc- - >. > r. y E > 5y -- c S = X ^E ? c -- II -C "~ ~3 == '5b --c x Z Jz y E ir, 9_ *i E 3E >. L_ y, ; ^ y E i.s'5E ^^ - 1 yu X-- V - s E-- 2 5 - y _E CJ c. E3 -3^ -C !- X M -- be a E *-- 3 E E" < " that too. Amt E c E 5 E. ? IrS ig- t-E c i'Atyu, u E y 3 y>z w u e E. a>O 9G ~y3 iur, y vJ U 3 .1* y 5 s 3 -X 3 5 u. J CL u IE U a r-. ^s % E ,: ^ 5 3 c 3~= C- = u T3 v, - V E = w 77 y ir. E ~ i- E IS c= y0 E0 h 3 * 1 J B. -- 0 NO 11) J- E' -r ^J 5 5 b --i 11:u ^5^ CJ -, y y C\ -- ^ -- x. JZ wX 77 -- E 5 = fc V E .3 -- JC '-S - ^ |S . .x _ ^ - .5a ."c c- _c = E- _c C S It^ a y u j? fc b > I -5 ^ Eu y -- e -c -- y br, x = ^ e ~ B F3 5 3 ~53 a o five sepanite state-ow ned companies ran the expropriated mines and ancillarv facilities. F o llo w in g the o v e rth ro w of A llende and his M arxists in ig y t, the m ilita rv junta agreed to ir, E o -E "E cj c C E 'J ^ E II cj < C 'Z E^ a I'Z 1 Jv * `5 V _E E E- i) v rt E <-- - LE 0 E E. ^? E o i--> <- 3 J fcE 30 E 3E s ill 3 3 V rz -- E i) _wE E? i -x 3 E a -g s. g U O r'-itt 5 E u_ >* a -E uic-:j 2*- 3 *1 E CJ E E CJ > EW U5 >> E - ca IJ "V -E 3 3 a E CJ _XE ~2 3> E2 io-j OJ > E E '13 75 'ir. x 0y -E y t-t. JE c S! "3 ^1 UZ . E" -- = C SP "3 E I t~- 5 = `Z -- brr, wu E ,x JE 5u *u y Lu b Bb _E y y E y 77 r- JE y 3 C7 ~V ih ir, E 3- E i_ c_ ^5 '-' -- a1 ^ Z-. E _E ?c "3 ^ -- I! * -3 E~ E O ? < CJ x | V ^ - 5? S >. 3 o c E S cz ^< 3 t: -Ec: l l Ml ^ u -St h-- ?E: ca a I dog. o - ^E -5 0 - 3 <L> ? -? - . 5 - 1 Li -5 _C jJ = C3 J; >^r- 3 cj ir. c _E y ir, - r: ExC E -E 95 X E CL ^ 3i ^ <u 0 r= E JE SU C .3 0 1 y ^ >> g ix -,,x 3^ IE 5 s b- lJ 4-j D"3 *c C c "3 CJ > y t X ^> _ s: u ^ bT .- u b/j -- /~N Vs. u :zj: 2 -a*s *\jj N e ith e r its new ly acquired m ajority interest in O jos del Salado in (d iile nor a stake in T urkey was " expected to make a big e o n triln itio n to overall revenues o r earnings," reported the W all v ij _c }i br,, t>> /-c\ E. E Z 3 U 2 ^ T h a t was how the I' helps D odge exploration erew eame to discover the w orld-class copper deposit located across the (io p ia p d R iver from the m ill and about th re e m ile s aw ay. '11 IkkI \ iclded lortuncs in copper ;ind o ilie r m inentls at I vrone and A jo. I'o r llia t reason, even in its exploration phase, Candelaria captivated senior ['helps D odge m anagem ent in a way that Southern Peru C opper o r the South A frican in *tr -s == 2= in . ac 2= o e, -5 .e c c 1 3 E Ei i--> - E O u. 1 & - 2 & -cl. v. = _i y c Z -. c b t> 8 ^ i f == E 3 - c- _c >~ ' P Z= __ 1 ^- _p S x = * p 111 E -- "5 f" 3 e .= 3 y 5g tL CE _ tz 3J 5 " 7- -- " ~ 5 a V. ~ 1-u E-- t *>. ? aS _a " 5 -= ;E "5 a" - i-- ~ if c 5 ' I _y 'Er-1) ~ ,,/. -E E iM IE ^ iE -= - a E i3 if ? 3! 3 -P _C 4-- 3 w yJ P a -s C ^ 3: -E -558U? Ji :5 j; = P "3% - <C i 1h 1 5 -5 _Z y yu C a -C = a : -i ~ e = .= PC ~-- TtJ.j _ 2 ~ P P rT 51 2= 2= E=- a ? Is 5 fcc C y 73 -P zc "E P C M^J y fillE jz a. e a "3 C -C -s C y -E C iE fi J HP_ V in y ~ g 8f y *& c y % E if. -- ^ |i ^ 5! s i Is I i z 2 C` = c y > C _P y it 2c y 2-^0 .E 'a -- c U *- 3 = = i Ll y cul. cuL jj _- ^ EE 'Z -- ^= -E S a a &- - ^ S- y S" r; -= I1 CE 1fI c 5 S_ x 55 p ro b e d no fiirih e r. I low ever, :is ;i rcsu li o l ih c new in to rm n lio n , I' heljis Dodge in I'c b rir.irv lyH y bored a diam ond d rill bole close to the in itia l percussion hole. It intersected m ore than 165 leet ol m ineralization averaging almost 2 percent io n 01 i) th a t ! J !L 3 53~ r: JZ __ ? a> ! j 53 5-- c j "v, J .=^ E -E y 1 f '31.1 1 i -l -i f f I--i y -3i -s 5S 3 3 1o | o -3J -e " y c Hi y ytrj c ;5 C ^-= a ~w n -sr I -5 r; V5 i Ss u ZJ O u a cc y JZ 4-< ?= s bJj 3 o = " oc ?r cn C* c a C ^ ~E - a 2 c i c y --c c-- * = y J5 E5 E E Uto CE a ^a = b Jo c ^ y 0= o E g 1? S C c- ES >. b y y 2 EC d 4-J O "3 _>n y c J. E yX JC u Cy y -C `3 y_ c -C -5 X "3 S u> Ca i c,,; (-x ep c: %-- -y 2c -- y 3" 7Z ^ a-- E "3 C s E 2 x % 1i O c E Sj CL -- b u. C E jfC - ~ u. ^ o 3a O 4-> a a -E y JC 71 c 1X rz Py y c "3 u c c: > >, 3 _a nc _>. E If y c c i E E y y E ' -5 y n E i, - y 33 S CL 5 E b y bxj y, I E u S'3 s 5 "3 E S 1 =X in _=- eaX >. E 8 -I ^-- "a _a a= n ^ " s 1 g 5 a tfj -r S f c E ? iT E-cy 8 5 5S s ^ 0 C " y = ^ 1 .1 c CX, c -3 >. c^ s 5 -f; u C- to "& fn E^ 3 E y <j -- U -- `3 i Z- d^ x ~'/`- 3 rz y y y _c _c 5 0 y = ,S J -c > - 3~ w ^g C C .3 C O JZ /x C C" = -Z tXa `*3 J d' y x n-3 I 1.1 E r: r; 3 ,E " i "3 .S d i a. S rtr i k lN M X 'M L> C2 2J- o .J cl ' c * 3 p = .5 ^ rw y CJ > accom plishm ent today. Like o th e r Phelps D odge operations, the new open-pit m ine used a com puterized truckdispatching system. From Candelaria's m ill com plex, trucks hauled percent copper |o w v<u; 5MT-* ---v. -C V. cj ZuJ zj -- in rt in in 7- r: ^ ZJ ^J ^ zj z-rj. *t--fj - in w com plex was predicted to generate b illio n s m ore dollars in taxes fo r the C hilean governm ent d u rin g the m in e 's lile . So re w a rd in g w as the C a n d e la ria o p e ra tio n 'to all parties th a t on M a y i. n>i;b, I helps D odge `ZTj { s. u Zj in reorganization). In the end, /Ylunroe asked him to help D urham w ith the corporate turnaround. As it turned out. future events proved luckv fo r both Phelps D o d g e and R vttn.1'' m anaging profitable ;tnd eash-generating phtnts that lubricated b u ild in g w ire, pow er cables, ;md telephone etthles in m ore than tw o dozen eountries, p rim ttrily in (A n tra l ;md South \m c ric a and the f ar Kast-- dates back to the 'J a fte rm a th o f W o rld W a r 11. T h a t was w hen, like m ost U n ite d States industries, Phelps Dodge C o rp o ra tio n discovered a bonanza in the postwar l* 1 VZ t~ _P> 3 =rs sc -5 J - o a 3 if. r: -- I--5 S t I 1 s4> - s 3= -z 3 .2 -- rSi ,c 'E4) -3 < c n '5 p CJ * S' -C c U -- = Cl e u _'oc /^ ~ -5 - * -- aX 3 := L , C > : - -J 5 J Tf e 4 JSTj 1- E3 p e :e a = u>CcC'C" z. >~3 -~ -- C 2s Ch .j n c. -- PO y 5E a3 f5t? --5 sLcQ. s t .f M 5 V JZ CJ $ c c 'C rz CEJ S ,b < ' - ---- rz aX .X -= -r tr, -3 ~ =^ Jf z. z rz rz C, o 2-- N ational D evelopm ent Bank, and Draka, a D utch company. In addition to the Cuba plant, w hich produced its first cable and w ire in ,Mav 1957, Phelps D odge in rapid succession launched plants not fo o lp ro o f however, k o r a short tim e after bidet C astro and his /Marxist rebels came to pow er in 1959, the new leader of C uba cited P h c ld ra k as a m odel fo r fo re ig n inv e s tm e n t, hi W hen the new com er reported lo r w ork, B row n instructed his colleague W illia m D unhar, " I his is m y Irie n d M r. M ic h a e ls e n 's son. You take h im out th e re and show' h im the Business, You com e in and te ll m e every n ig h t how he is n e ts h im c E' Jt 2 22' Vj E =3 ' s = u3 *2= -a 3V CJ > CJ E tO Z -- cj C= -= *5= ^rz '5 to .t; cu Zo 3! 5 .E *3 w3 d `C CJ cj s yJco s. x -- VC c -* sI CJ x C 3 ~ ~z 3 'J - =L < J n^ 5 --y 3 3 c> o P P 2B --X Mc 1M** II c & z = <u Z < J cL IEE E '' to 1 ii = CJ CJ r I i?M E j. 3 CJ CJ 31 3 C- -3 rz _C cj 3 & V. TZ -3 n > 3 CJ -3 _/ 3 CJ ,,x -- J. 3 3 CJ tO rz CJ JZ C- c` 2 . -- r\ 7Z '> 5.1 * to i e J if J * C sc ,E CJ y CJ 2- C r L. ~ S 3- ^ d J S = 3 c 'Z r: > h a lf- E 7Z -3 X C3 C II*3 ^ Iy 1 I &C1_J Jil' 3 3 3 1 J3 C>J 1 -1 ^cu s 'c s rz y sB B I 5 S ZE Q" -- c a. u- _3 _e| I. f '5 a3 u a. Cy3J =>* J3 to g 3 < 3 3 CJ -3 fe S C j -z 3 -cj xC CJ "3 3 -3 CJ S Jjli, cj 3 3 t: = 3 ^ = *cE-. * - 5- CJ E 3 CJ 55 5 3 /*\ cu nE > 3c - c X C ' *" p r: y cs '> E -d E y ^y _3 -C 3 3 0) CJ _3 X u 3_- 3 J *3 >> S. cj 0 B ^ .E t=r y u - u 't I V > J > Z t. S| to O 3 >, 0 3: ^ to C <U -- to 73 . S S& S CJ J 2 E P*7CTJ - i > TM 31 L C3J ""X7 3 ^ -"E - L 3 h- 3 <D -= to _ ^ CJ 3 - -3 o J f. JZ ^ to IB -u 5P "=: 7. X g \v;is ro p ro v id e nv.inngem ent, 111,11k e tin g .issistnnee, technic,d support, engineering, ;ind purchasing services to its associate com panies w orldw ide, p rim n rilv m anufacturers ot electrical and telecom m unications cables. It also , .r 1.1 J1 2i n -- H J2 2 3 E E -- ii cc 3 a d -3 CJ 5 f IE E =C 0^ E r: _ 40 ^ -i > UCJ- cc 'E U c J: 5 dS c t^ CJ to 3 3 5C E. -c: E3 E _3 Cu C | /X Sp jo I 03_ to 3 S' o j: c ; = CJ X ^ _3 -- 5 -E b | rE- S=- K. = to e ~ J; d CJ _3 3 I 25 ^ "3 3 CJ < r; -- I Z --i--X E .= 3 B c s. ^ e V to U E c 3 CJ x aj g 5 ' J 7: E IIiVs I3 C\ . c CJ .. - ile in & If -r 5 Q ct w3 '* y33d ^ 11 E 3- 3 'u Eu^- u 3- O 5U I 0) CJ d E C/3 _ CJ g_ JT x J; " tui = i) yd --i I S JZ CJ 3 % -3 1 1 3 CJ E .E E S 'E r 3 d Cj 3 $2.5 m illio n , As president of Phelps Dodi^e Industries, A'lichaelsen grew concerned when his international subsidiary seemed to founder, In te rn a tio n a l was basically 'fe d 's baby, and it" 2 rd u-- ,, c ---- 5E " be -7 H ? -= -- t to 3 I 3 -J-. -- CL V - b -2 . z 3 -- ~S b u V ^ZE .= X rz H u L> O .3 y. ~E VV be u X J be jj c -- TZ -- 3 *5 <-- -L be 3 " b 3 .3 r -i=- 0 | 5 =gu to bo 3 3 S t u p .= t c5 i. - h~ a1 -3 rz . --< .E x r-. x - "0 3 h-2 g E3 ^ - "3 cc ^ 3 5 3 -c T= 3 >6 r: r: c JZ E ^ -- .2 -j *- 3 3 = i --E =- /J w ,,x " Jje L= 3 T. = = ~ ? ^r~-. b J b J b IS J ^J c< * 5 *--c> _3 r: > E ?! _r = .5 -> "1 ii E. ?! r= E " "3 J3 b -= -- -* Xb X-- 5c 2 5 3 g> 3 B^x^ zr IE r5 c 5= n .:' 1- _LO rz JZ ~- * `5b 3-- C Z1 c -' - "3 !> PS 2 *- | to b 3 - r- -- 'y "" X x IE \ y -3 U ^ c` -t: J |CL be -3 3 `-s b - -n -e be IILJ _C | 5 u 3J z ^ 3 ^ 0= _-- S 3 II I J* JI = =S =2 u- 3 rz w u =rz CL 3U u - JJ Z B *S *J 3 "E L `u jj b U 2 -f= -~ 'u I "" -- P 'JC C 3E rj- J= !> - ^- 3" 3 w C E 'E 2 O v e r tim e , A 'lichaelsen e u ltiv n te d ;i person:)] style that w;is unusunlly iLnnhoytnit lo r Phelps D odge. H a n d so m e and suave, he was a lavish" spender." I lis Park Avenue office was hv far the m ost extravagant in the co rp o ra tio n , easily tx c bij -3 E JS 1P h Ci 11 "Ea E ^;-- i. J i1 ri III 5 | p"-- o 3 5> "5b 3 S .3 _ vk > -- cv z: rz LC 0 u _LJ E y J= .= I5 y. '-' - r C? I'- E c: 2 = .=. > 5^ t JZ E w i? tfj g g = F - yT 1 C 2 ~ > be l -a r *tTr C 3 -3 Ofj bj -- c .1 d3 j -j ~ b L> T' a V ~z be c CJ 3 3 S 3 D <z i~ u u ^ '= -- -- " JZ ~z j J z UP - l^ 11 s aP Jf 3 liU1 s E 1 iE g3 -i=I - I1 55 3 32f rz JC r= 5 j! ^ -- Xr C rr. ,;-y: 3 L --' 1 X-- ~u x r; cj __ 3r -S C J sg -5 be - 3 2 - .& = 3. -- 5 P E 3 s: 2 | __3 cl '2 - -3 = ^ r' t: r: -- "3 ^t> V __ JZ 3 -o `c 5: - E^ > to u~. ,= 2 53 3 y. X X3 x r- Cn L >. E E ix: ^ '5 3J n ._ = j P- i" -- CJ rz V s J 112 -5 jj~. 'Jz 5 'J " u u _ " JZ "3 3 -ii ^ Q 3U I i S T S ^ < S. T3O -=' ~ T, to c = -P2 a ~ jr- JZ z is ^~ JZ u E "s E s S. JrT J s. N E P iili= J5 "5 c: ^ 3- =3 s O >; .h c "O -- -- I J U j= k 03. ,P < -2 = 3 3 . E E. S t i CL -- u > s V *0 3 " " -3 ^ '5 c; 3-i cs LC 1 O <j= y 3 J ~y2 3 J i-ft J 12. a 1 a i C - Z-i z S I i - l*u c> z H>. .2 4J "> S - _ .2: = -- .= > = - -H -1 * y 3 -= c s 5I 5 P bJj r. - --c- " C- 2 ff 2- 3 -c E3 -_i3yc: ---r\2y> '0j_ c3s 1 "2 3>- -2ct 0 2y 2rs " 3 r\ u 3c <u c rz y z 7. J- 3 4_, ' JJ 3, J2 Hi; 5 i u 5 y JZ ct *~r -- _c Bu z= 1 2 be " C _' 3 U c. r^= 3 | IV ~> ' 2 5 r13 _C2 -3 V. 2C oc .2 3 r,, 5 := >Xt23:- ^ - Ey y sy 2 >y. ^ a- --r Sr, -E z ~ g j; 3_ --E = E. .= X ~ J= ji i i Ey =< b i-> r\. J? >. .. - -2 = a r: e ^ -X 3. "E u 2 2j -2 *- 2 0 -2 t= =.> | ,,y u I c- G tTj 2 'Z3 y S2 y2 yy v: bJj rz b 5 s! ~ " " x '3 S --y 1 ~3 = 2- " yC 2. 2 <rz 7Z -2 2 ^u *4 1 = -2 = _ 5 Z E .- 3^ 5 1 '5 2 y _br, sr: 2 TZ s _ 1 ~-2y ifj 2 - s 3 rr 2 J . | oc ro c2y/:2 X ET 2 r: 2 e y e j r: _32 h ^ i j? b &. .= e r- - n Wr; "2 'c- ^-- ~5 1 I I I - -z A A C- 1 y- ^ _2 2 5, - p < j-M= = -- E -- d <;= ja= 3^ 15 2 4= " Ey y _2 2 y C z ^ = U --! Z) 'X JE C- p *- rz tr. - L- --" O > >, ~ 5: ^ C` 'wT u j V> o *3 c c % U .* ;j -- C/, -- K Ct C J2 o CJ fin a n c ia l s tre n g th . In ;tn\- case, Phelps D o d g e International survived and eventuallv thrived, so th a t bv the late ty y o s it was w o rth at least lifte e u tim es $50 m illio n . Zf. tr. o iy~, ij y b 4rj ^ ~j i3 C r^, C >'* ^ ^ -- X --^ ~ X. -- O r- w ell as telephone lin e in s ta lla tio n s , c o n trib u te d to the Yene/.uelan group's excellent perlorm ance in the m id- lyyos, D u rin g that tim e the I .atilt A m erican m arket o ST, cj `Sj I V V j: ^ cj u r- -- V. r- 71 J "S X - V a Cl. ~ Z " v. u r .t: <.E^o > .E ^ -> . ;-- V = ~3 ~,, LL 5. ~o L^ ir* ^ O 'u CL ^ 3 "E O' ~- 5 x i C- cJ ^ _ =1 --i 5 33 5 -- j 5X > ~Z L ^2 bL . l r X- ~ L^ 3 L~ V BC^ ~c~ "5 J3 L -L E C -- /"N L r: -- -- L> D J-. . L -- ^ 5 E | V CTj ^ 3 C _x ^ L 5^ "3 E [5 11 E _ ^ b/j = ^ . r J" _< Jj b--/j " xr> 3 '"n ! j= ^ _E z ''--' L L-- J" - 3* cj E 6 2 |f J c " ^ 0 r "5 ~i _c %c t XZ 1= ^ 'VX ^33 pp> - %2 ~ L _C &=. ybfj Ev ^E u O- z . z K k o .M ( i d l ' N K K | N < . I M M I ' l l I( <>It A .i I I '. N T I . U l>R I S ] > 3C E ? -- _: ^ w j Z * w company to Chapter Seventeen LU / 22 i D2 OZ U UH < o J 5 z ( LU z < X 3 = _ ^ z z - CJ " v". C -3 u its heart. S peaking of w h ich , w hatever else m ig h t change, one im portant measure ol co n tin u ity at Phelps D o d g e is its e n d u rin g c o m m itm e n t to philanthropy, a com m itm ent that originated w ith its loundcrs. 51 = = V JZ Z. y v E 5 : r- V X 111 'Z. z y t 75 = n % W-- ^I U I! I 3v --3 E I' y Cy ' J= be y z a 4' 2 : 2: 5: 5 -s- 5 -5 ^5 1 .5 jc | i I t~I2 S> 2 4 -- - B t= 3 d' _3 y bfj 5 b >.C ^5 *_y3 2 3 73 __ 1 - br,, J >. S e5 | <3 I 4I " - S-2 = I H -3 c iS s p - _= yn 2 *I- T0 y Zc '-* -t = 5Oe ^ --~ .3 a >. 4 S^ c; y 2- ^ !I --= j>* S r --? -E^ s> B - -- ybj ~ 5 y g = ,x 3 = s X ~ S E Hi E si, 5 i ^22 :f a. 3 .b3 y 5 ?5 - .= -- -C ^ 55? t=2 = I &C V -- vr 2 B s3 -E c 3 tfj > 3 "y B ?-bfj the coi c 2 " Iz y z y ^ a-C r b I 'i-33 t?c j-* 3 - a. -- -- y5 1= 2E --X-r= 3 3" bo "A U y y -- yz 3 7VZ. | _y> 3" y >. r: y -s c *2 x_ y -5 z _ z V. yu y E j- 31 5 y y^a &y 5y "z 1 zc r: c kz S ybe a. 25 2k 05 y. w be c = 31 ! ~ i-h E 1 1 z ~3 _03c yss `So y> C c -- 3 5. ,i $ 3 y C 'B Z ^ rr ^ tTj Z >. ~ pounds o f copper, m llie d $49 m illio n i/i assets, and paid out $5.4 m illio n in dividends; in 1997 Phelps D odge C o rp o ra tio n , headed l>v D ouglas C . Vearlev, m arketed 1.6 b illio n pounds o l copper, totaled nearly $5 b illio n in assets, and < r. changes detailed in e a rlie r chapters, Phelps D odge C o rp o ra tio n held firm to certain aspects o f its past as it approached th e new m ille n n iu m . Its system atic a ltru is m , as d is tin c t Iro m tens of m illio n s of dollars disbursed each year fo r taxes, z y I 5 & c c & s iH y < ^3 -O c VV yV b/i "5 c c 7 y~ " > /-> 71 72 2:- 3 ^ rv u CQ >y a -H *u y if. jj y y tx JZ x. zJy3 u IE X3N fc V. -- =D 1 E C * b si a o. .E y J3 5= "E 5: y E- >. c "St 7. 'w' V -5,_ _ ?E C= = ,x - -s CJ J3 ie *1-7 ,,--" *-GV f I 1 ^E ~ ~z ^ 2 X. c .E x "E * 5 -5 .= - ~ 11 xy r r\ _ "75 g2 g r-. --G c. = 1^ G -C yE `E -c - y^ 3J 3> i= c y if. &s -E "3 -- s E rE "3 r: y _G > CJ -I y ~ ,E JZ -X th -- Gs I-i E Sx /--C> ^ - " 3 EX y JSj E- X _yE 3 X y lE j yu *3 JL xzy- rf y `ZL 11 ryc "5 ~u ,E y _c 3- * 'E c 2- s*X 3Ey "33y 71 D o d g e , c o n tin u e d his fa m ily 's m any p h ila n th ro p ic a c tiv itie s even as he to o k an active ro le in the business enterprise his great-great-grandlather Anson (I'reene Phelps and his great-grandfather W illia m P.arl D o d g e launched in 1K34. A lth o u g h I *1 * 4s><* R O Os a s | I O -5 < h : V X. t-s UJ 31 S; 1 a1 7. .= -x 'x I ii A -S a. S = 7 r =- * si; aa -a 'ey: t. 3 f1 s -s 1 A % I! 11 *. & E | -e s. = 13^1 <2* tS > jz rv: V ^ -6 2 tlv.it when Phelps died, voting Andrew O arnegie s till managed a releytr:iph olliee in P ittsburgh and young |o h n I). R oehelellcr did chores on his (lather's Ia rm near Cleveland. O h io . A lte r the C ollege (now U n ive rsity) in lem pe :ind the L n1 i\e rs itv o l A riz o n a in lueson. In t ears past it awarded tu e h c undergraduate scholarships and tw o graduate scholarships annually, and though CJ _CJ tfj ZSj tj _c =JJ *J u '-U. be O --O co \ ---- r-> _ir V-7 ~ g_ -- ^ ,C ^ u^ 'J y ^ iz bfc Jr X^ z - y r. vbfj .2 ^ -- ^7 `5h ^- C E.MH1 J -- b bf; Q i=ii -- ^5 Q_ S C ~ __ CL u -- -- u E ^TM 3 > rs S o^- o ^ >u a- _ | -S: ^ tj s' -Sj . "Q.-' R' ^ ^ $>. ,". * .1- Q 3 &- t-: .. '-S S'-'l-r V g. ^ S -.43 ,' *h. <&,' s- 'S' * f\ S' . i g,> .N ^ ' > J-'-SS Q Si So' $ kUi R ' iu'<U-- Rcu. * cy .tr -R . *- . fS cS 8 V .18 g g Q- R1 & k r-. . "R : ^ <<2*>- . R oR Vi O'} o H ".}$> ` *P2 R- ' '< & : R v co: . , . "*'- , , R^ '' - ;v. s" rs. ' : * o?! "E: r .=3 `g.V; - RO v',<0 : o. "^y =-f- *i ,-tf- 5 Cta-;:V S'-; g :: S'- On Os- AK4j..' s w": ' R R -S'A'1 rf~i ' R-' 55? +2-' "bR* 1' *U.;-; V^>0vRtf s-V ~CkV-. ." q' a. .s : Vy-, ag>vyvi" S.'-. . Q.-. Sr -,Ro -i2 i:fil pr* display included large dioramas illu s tra tin g fo u r o f the nation's greatest mines, one o f which, naturally, was Bisbee's Copper Queen. B u t that was not all. A m ong the showstoppers on perm anent exhibit were the Hope D iam ond and Queen M a rie A ntoinette's diamond earrings. fascinate thousands o f visitors a year. M u c h m ore recently. Phelps Dodge donated nearby Ilatah/c.',i. a site even bigger than Tuzigoot, tv /Ac .inhneuhgical Conservancy. :icti% itic s n o r its annua) in fu s io n o f salary a m i la x revenues in to state and local econom ies w ould continue lo r long if Phelps D odge did not c o n tin u a llv lo o k to its fu tu re . Keen as it m ines ore totlav, the co rp o ra tio n must search fo r l-- u -e .E -- e 0 < ^ c . oJ c -2 tjj s 2 *c c L* u 5 1 i--t e L> < sic I > o e E ct X o E-- CE E Cl E D 3 r; JJ 5 cr E= '5 E > 11 If s f* ^i S o' e +"< 5o D l_ Mi 'I = C V i-5 "3 'ZZ E r: i ~? -J3 " iL E IS E~ ~ = --~ bJj E 2 '--- m in in g operations. At nil its Itrundles n rig id hierarchy existed, and observers som etim es com pared com pany m in in g tow ns to m ilita ry bases. Yet. w henever lo n g tim e em ployees chose to com m ent on everyday life in Phelps D odge M. r= CL O -y*. e a JZ U D 3D E >: D -c a rz E- = r-i u = CJ -C5 X I - W 'illi.n n Seidnw n o f his years at the com pany.'' It was tim e to alter the way Phelps D od^e managed people. M anagem ent latm ehed the culture change initiative, and the man appointed to head the team to study what kinds of changes y 5 = --' s ^ ;j - '5 3 5 S r 5 ^ ZZ -- y35 c 3-d 5 - -? --- y o _U J 7^ s 3. "O c rz if -S y If 111 * ."= fa X r: > 'JZ x > x. r: J" Z y X. 5 " J u I 2. ZZ u a E ''c ~ X y -- -- _2 ^ _z tfj --x. =S > C ga u .-- s .r ^ 3T c " Z 3 |CT =w C > '5 _5 y X* Z _e y y ,E p ^ _y E -- <- 3< __ 55 X= 2 CO s. p i F3 -- - si, r w yy to, z -- c_ "= Ej 6 -C rz r: U *J l -y "~ jz to F yX -E ~ y ZJ >. "5- 5 -> a I' _ cr d Z ZZ JZx. ;= ^ a J- .E Ft y "E z E O z 11 E bx, z *C 'E 3 XC ? =`^ 1 ra> 3z 22 --1 y X. -- it " 3 E= fa 'C _, Z~ z bh Z ^ y_ If. Z * I Si Z Iz Z Z to 3 2 z -a -c -n .Ez ?L n zy _z 5/4 c 'to z 'E 1i= toy y bx. X- Cz z ^ cl ^Z E r: ^ ~E ^ Ep Zz -S =z y bx, - -E =u ZSZ" _y * -Z 2- E E = y bi zz *u ---fa x. c f-E y > "E z | :I s ^z u >. z JZ " -3 'z: yw 3 > x 4i 3 .t; C5J % ^i c C Z z X bifj srnnchird procedure on the lonely ro.uls o f A rizona (w hich once had no davtim e speed lim it), h u t in C o lo ra d o , w hen a state tro o p e r pulled over l.a iv s o n 's c h a n fte u r, the o ffic e r rem arked w ith am azem ent that lie had never before been passed >. rz yz jz y 5> z _-2 z zo yE .= = < ti, '= eJ -5 < S o 2 -s c ~ H -- a. 3 ns if -i "Z 3 bL Z d S -= - ^ a s " Z Z 'C -- ---- o -j w y z d y yz 2 Jj 5 Z-= y ~z ^ Z 3 z ^ J Cl f | = S ss ? *32 z s ij y- - . a r: , z jZ E -- .2 c. -- g z .1 E -S i- l ; 22 z^ y-- i-?r't a y ) 5 "3 su ^y y to rzz z - >* 2 ff ` X Je z-- y ZM 3 5 2r- "5 V '99 < --` r- .2 > 5 c -- II- 3Z U ,o V f-- y o g .= yo f. K r. 0 z >. 6 y g zz rz -Z : = c: ux. y '2 Efj >. Z Z2 ? -Z y *- >. c !e ft ZZ -- ^ cz y " *-> -- >. z ^ t " c Lz -- X. y z y 3 y C X. IE *-- 2 z -5" 0 E || o2 rr JZ y zz to c __ & c y j f= to* j z y y -Z : r- r_: X a ft 0 3 uT ZZ d >. y z Z ECT z 2 "Z Cz ^ z-- > g . 6 "Z z Z k0 J yc > z Li! ^I ll s to z -z " y y 'Z3 '3 _ 5 Z 3 ? y _ 2 ? & --= y - 2 5 _ b/j 1 -~ -- E ' g _3 3 - a j. 's- z d "y -- >-. E js - cS "6 y ? Z- ff " -- Jz = & > ^= 5 o x. ^ - >. s Z n>, rr-~ z zC " Z ZT' x c3 1 y E 'Z, - = 3 .> = "Ec, -= -y. a = d Ioo 7 E . | M i d^ , z y >xz ft -> > '^r zz 14 1 r v I p i&i1f3 & J jrmji i* jBsr !^ 5I! d 3 j is '5i I=e nI== '5b> -- c r. ^ lu -1 p . -- -C = bubbJTo/j ry:. _ C 5 5-- u-- E~ b> ? .2 S' = 2 * bTj C C =- 3 3 ~ b CZ E "'" >-> t?? 2 y "= s cb> Bj a -33 =c *r -C> " ZJ S| p. * " cj JZ d ZbJrj w ^ -32o" ^ -iuc bJj 1 - ' -C c 3 i) c E u- Jz i-* < 3 b3> u-r bJ .> Vtj 'S C~ brj e = Ci " " 11 =S ; --j 32 h >5 ,, "3 C b-/J ycc "=b C b S empl lookc J. yr:. -C3 c3 > /"l -- s-l ^>. "3c -= -3 ~ " > c ^ s r- 'E & r: X Z c C -g c 5 3 == 5 ^ >_ E .45- E3 c5 'T bj ' E '.Sc. bfj 5 3 - = , --C 2 , 3 -- 5 Ef, b> C- b y b/j | : . = r= 3 J? .5 I? -- bJ rV- -- E = J= K * oo ^ rif c c I r: 5 ^C buJ ~ c bJj E ^-y. b> E -b.T* -nb> u . = E. 3 3 I' l 5 b> c c I S fc bu> C- y= rz 1 E -3 * bT ~^z V 21 b> - * br, c c bfj E B^ .1 I $ s 3 -i; c b- _bb>ij t C- E. - -5 a j. c. bx, b> rCc 3 . b> 3 bJ 3b3r, c; ^ b- r ~r. -^J 5 E ^= -5t: --&. -- t -j i x ^ -3 S' " S= = < - %? J 3 cj c " = -3CJ J2 3 o JZ rz ' " -* 0 t bJ E = jrbJ _ v c %a yb-> r=: c=" 2. ? ^ = "= ^ -- c 5 b> -* *- w = c E= .E 1 I %Je = FJ 3 S' 'E '-' S ^ =w- ==~ o- .E=-- D 2 '-T, < ^ EL Z abb Xabe _c - ^ -- U H au P __ -_r ' i --' regard them selves as little fie fd o tn s disappeared too, observed YVhisler. T h a t was, lie believed, p a rtly because Phelps D odge once had a certain co m fo rta b le largess o r fatness it could no longer m aintain. zl i ZJ 20 -J V U ^ child that represents lam ily m em bers w ho want each m in e r to re tu rn home safety (though today a good m any people w ho w ork in m ines are w om en). T h e Sentinels ol Salety Award has since n;>5 recogni/.ed open-pit mines having the best 0 'J it, ^ >V Zlj `J o C nKn^ssa.^; I 2: " X .e - g =2 a^ a ~ "H 5t S B ^ s | ; # t g >* .go _<* SS Q J| Q^ e5 / $> 4. _, \J ,-<e0i o^*-, -f^ts- ;o*s I <=N\ In the mines, too, the old culture m eant low er wages fo r H ispanic workers w ho did the same johs as A n g lo s, o r th e ir b e in g barred e n tire ly from certain jobs. For m any years the m ines o f Bisbec d id n o t p e rm it 1Iis p a n ic w o rk e rs M exico, taught M exican h isto ry and related subjects. Tim es have certainly changed for the better fo r (io m e z , Fern, and o th e r Phelps D odge w orkers of I lispanic heritage. As o f the late SL li 4? ?' a I1 I I 3 ^ |5 M $ . .5 ^ l 4 <; I: i ^0 u *u 3 3 > Z __ \r. ~ 1i| E .2 3 -c ji x & 5 f_3 ic. ix a * c.-- - v. >. * '-. S . ~ asJ - -2 'a -3 c _r -- C in cE ~ br, =5 3 -- be *u 3 . 3 "3 --' " > 3 -= O h if 3 V > v: 3 3 CO c w- "3 J*3- =^ = E y ~r- -- , 3 T' 3 3 3 o 3 be 3= | y S c k_ 3 _ = :-->` *| 3Lj ^ *5 3 -= 3 vT E v -g -- C xTj '5 I .= 1 y '-c _ 2; r>z ^" 3= O 3 Tt- - 3 > 3 3 " 3 ^3 c '3 3g u >. 3 -5 t 3 JZ _ 3 3 3 co __ -3 D31 v. '3 -- = . CO ^ ^ r: be =i 5 3 35 E II JX I 3 0 . iZli H3 3 33 IICL C_ 3 3 >. r' "Si E H 3* 3 C 3 3 3 be ij 3 =c *z>: &* 5 3 3 3 uW bo *- be E g -IJ M 3 I ^ ^ a; ffi o3 C S.t s. -3 k 'E c If c -3 ZL s, -`i 3 CO hoi" co rp o ra tio n entered the new m ille n n iu m , Ycnrlev w;ts c o m lo rtn h lc iliscussinjf w;tys that Phelps D o ilg e perlv.tps fell sh o rt in the past. P m ;t" re a list." he stilted (lin ing one ol o u r several interview s lo r / isiou and I'.iitcrjtnsc. " As you go 11 > bo -- I Lz -E S c - a 5r uZ : : - -- ax=. x. ^ r 2* y 3 .- XX. 5l if z > -- y -- Z i X, 3E y JZ t.Z U y _z O z L 53 j L_ >, A x. '~~ -- b-> z X z y-- CJ y XX JaZ -Z z &. a 5 bO 3 3s c r; 'E 2 CJ Im y bo Z " > - .2 bt n ~r> r = = X E * r- -- '' - 5 y 3 >. I - . c~ ? bo x ; S S-Z l =. __ y 05 C c bbjj <5j ~5` M ? s cxC <2 ^ JZ *z J- c = y bo z X z = 5 bo c~ yy " J .; u y1 ~ - bo >. S' E J2 XX ~ CL -- -- -= E i i ri ~y ? IMs a tyx, E 3 yL :^= -z Z ^ Z- bo P EE j -i ii |J / Z y I^ x - ^ .z H 1~ x bo z 3 -- -E ^ _ Z~ - JZ -y Sy - X L bfj IE y> JZ >* * -S cs >X -= y ;i lo t vcrv t|u ic k ly ." ;" I ' n trici;! Y ouint, w h o is ;t s h ift supervisor ;tt M o re n e i, is n s e c o n d -u e n e m tio n Phelps I)o d e employee. I le r w ork experience includes d riv in g haul trucks at both M orenei and Tyrone, where x> y bx \r. X x. L_ yr E z3 yZ 3 z T" y 3 y r- f >- h yX > z v: D x. yE yr X X z y E sz u z <1 X y b/j c - "Z y C* 3 bn, >. x z y E 11-- < bx. 111 s^ zz f II "z `mm yy CL bXj =^ ^ rz :-5 .--5- -- --= --^ y y = == JJ y y 3 -5 4- \lC2 M1 S l5 l< 3 y l- y x1 5 i_ "-Zy Cj J- i` XT Z Z t? -E y 35=c S' c ^ c " Z -- u J 5t Z? Z E y `i *j 3 D c .I ___ c o y z -3 J X X J] ^ b.r = >L. yCXj .X MJ I ^ | if 15 c -E A z .= 5 > _2 --y sz .X x 3 Zx -- X ,z '= 3 JL- 3 S- E E -5 3y ,=zl >> 2 5u -- 3 z i ^X. .3 1? z y - y X y z y c > z PX bx> 5 Z s ^z im* Z b* bO y . ^ 1 " -- g Z , C z y y i S 3 X IE x :- ;y z y E CL 1i *3 > '3 TM S2 r3 . -- yy u c LUX cx E ^ ^ zEJ t, ^ 2 y O y JZ bJj X " z ?i - .1 ^ j -Z y yZ^ i ~ .SI. x "3 ^? > ?: -ft 111 a. c. Sr 11.-. 5s := 3 y jz 5 ^ x. j. y JZ y --= -3 >,5 -- -- -r zx= -- = x 5 if Z -= y 5 2 5" 5 j. >. y J" '3 '-- -_> s! 5 5b & "5 y y o t S E 3 0 - -5 di j -5 * z & 5 2 r gJ 15 " '.j .r? r i Iy c w _3 ifg' -1c ^rII- 2C _I= y T JZ J E D jg: yUi-t ti s hco J J! "3y c y 5* 11 3 w "3 & 8., 5 QV s. 7Z I *i 5 . Oho -u=s 3 c3 2= S>. 3 C J<u g a s= I3 c a I b3o " g ,,>x, rz 5 J_CD>. 1 ? ? Z o 3 oOJ- -3 II V) -3 *<V s 3 `C a. - -Cbp bp ^ cl Z CS $ &2 ?u a, V3 -3 -* QJ o o o ^.55 &3 f*3 T g IEO^ -0c) rz 33 2 ta Z & G3 ,tS~ ZZ" . g, Z -3 * y g L- c '3 bo )Z 3 8 3 y T W> "O g -2 5 Z 2. o o % E --C33 v. ,*s CbO * 5 <2 -L_ D ZJ c* 7* -C33 o`car. 3 ~3 TZ c Cl 3C r^ - 2^ a- 0 C/5 3 z "33 33o 3 ^ 5 1 7. -5 3 g .Cs3 OU3 c/5 75 y3 JT 5 .E3 3-i -* 1i a 3 S ^P ".53 3 o 3 -3V -5e. y E -s y <J x -5 cl bo b=co t E rt ss I "B "Cuc-t sa 3 `0 3 03I ~^ ^uc- 3y -trO B^ S -S >r33c 1 &y I J 3 J 2 Sc3 3 1 ! "`3333O3 <>u --0 JCCJ M s c^ b3o 1u 11 ,,-33>>r.*, "-r-C^3 ^ B. 0 1^ s G' 2= ^gk>Z." ~ II 2 I r- B -30 = 3 .2 % 2 2= = i Jbh IuO. n z _4) -g ^r= cS iz ^= 1 'i y - c_ 3 3 3y l3* -3 1 a Jg "3 -- a. ~ "' f-J 3 -r C3 3 =3 _Bu u_ v- Jg= oU zO iS i-c a->- ll ~ ^ 3 s I c: i , S ^ 3 J C s = - U C/5 A 4 3 2 3? y y -5 bo 5 s 2 o --< u V. 5 if X _y ^ C= E yE 11 - y _3 fb c ' _ 7UZ x3 xC ^ 5 3 if. y 3E E If: X X Sj y tx: y Sr: CL -y3 _CiJf vT yyr: X <3 y 2 p --s 33 C 3 r* y jz -C if 3x c 53 I CL % JU CD y1 -E X y -3 > y y y C i !* 5 ** "3 3 if -jzyy: _--y3 -s gj u Er a: E s if _y3 5 -< .3 EE _ 33 hl-" Jy3 - y u J 5y3 y Z - - -= - -- '-E3 ^ ; z xy S if "3 zz C "v3f >. 3 pn g Cy 7Z CD *= 3 y& JS E z: ih s CL < iyf >. s & Q 51-3y. Dy 2 4c-J "3zy | CL 3 rz CD rz JZ ZI g . & JZ z 5 * - i3f _y3 C if yif &y y C'' 3 3 3 JC Jz =" F 3if = x -r' ^ ^ -E I1-5 if yay. g. E y y rz 3 sz r~. J>S- S S "33 3 a =if z _z3 Z J y _ryC: s 33 <rr *5 '5 Z M y cz JyZ -E ~ O3 jy>. Ey E Z IE3 ' z c3z y JZ 1- .3 < 5 "33t: 333 TZ rz "y3 I y ~u I "y JZ z Cl = . E 3 a C = .yr E - N y "y ---- ,S-- f z< ^-- E 3 ID y z * 1 if 3 3 - .3 C > I w -E CD 3 `x J2 ^ E E. -- IE _yif C^ X y3 li! y y = CJ > y -2 2 CJ "21 x ` 2 II r: 2 J? . or ~ r -- 22 ,5 -z 2 5 I >. ? "" "y v 2~ y ^2 - ' _>. 2_ 2 2 2 rx: 2-- y u2 y hr. u M. >+ 5* .= .- 2 -- a >J 5 a hr, J2 c -2 -22- c S y S iJ if r: --y 2 Z .2 1 ^ = x_ E 22 2 2 2 5= _y2 h2r, S X 3 2 `x 3U 5 h2r. 6 c P -- ?Z -2 2- t'O~r. .2 'El ?y-. = 'E 1 3| x" -j ^ = I r E 3 - _ _2 `Z "2 H. ~ 'i 5 II| % hr. 2 % *> 'Eh & i-J c s s >. 2w r: r: -E 2 C M U-- "2 J ua E 1-- c - 5 5< ? yy -5 -5 2L = i I to c .2 222 -= ^ --t < bo --- Sa .1 ,, 2' -r jr EB 2^ X y-- 3 >, '-2 y 2_ .x. <: -2 ^ _2 I g u g -2y 2 2 2 " 3y =x --3 v=j 0 5 / "5 h >. 22 .11 a s "3 2 C -- X X !: " 0 * ^ >" --"V aS '2 y C .z2 *3. --7t zL ~ y g-- H >" ' Z *" 2" ^ Z - S Jj B - Z TZ -- -- <j= ? if 3 t ti4 2- y _P . "3y "- = "3 2- y yy cc w *u 5Q 8 ?J <y -5 c E. | `x if If t z 2 2 -X H rz - - to a J- til "= - ' interest in (ih in o M ines from K ennecott in late 1986, seven unions were in place, at least one o f them since the ty^os. First negotiations were held in 1989. A fte r that, five locals decertified, beginning w ith the M achinists union in 1990. had expired some tw o years earlier. Q u ite clearly, the ways employees and m anagem ent interact at Phelps D odge w ill vary considerably between the m in in g and industries groups and between union and nonunion \ ' tI I ; A ( . < l ( K M K i K T i l l - N l . " ' M u I I N M I ' M " _}. I > awntsa ~ ^ y= cy D c_ hr. CJ r Z /"' 77~ D 2J - j* hr. br,, b) 'nc:rborn bt/bics in the n n ru -rv nt i'h c ljn Dtulgc's })(>n^in\ bosjnm l irin im h ns that totiny Sr* s c 4 S' > a- 5 -c$. b. 2 ! -5 -1 n 2 | P: 5S | I s ! Ec 5 1 ?Zf i. > 1 P=: -r '5 -s a. $ =I ?M Il C > ^ .1 -5 =1 -5 ^2* <*L- ^ &t f ?i S a -= - S a 3' r . in.1 % -p 5 cp. 2C 5 _r y =r I I = zi--C ss -s8 | 1 5 "2 a i a E 11 r- - is i 1-8 1 I Ic_ ^ c yu " 8 11T: 8 ^ E S S S 2.2 8 2? I'g. Jg s 'I iso a o2 n : n n= I e M5 ill f 82 q.E 3 o= JUS u s 2 a. 3 c5 a2 82 2E a |V S -- SO a __ E^ JZ u 8 8. so .2 aa '- o a -E a- E D <N - a: * o B u y bo V . -E ^ c -c .5 1 5- - "y3 Jy* < '5 8 E .E y-- -- tij . ^t- .E ^ 2K -a E \D 3= t m - s 'E 8 C '' _e y 5 a. 2 a "3 C ip 2 - 72 O E y y J- e l! ^ ? a 1 .' = C __ 3 rz y bfj ^E -- 3 B ci E y bL -E .2 >. E- E a|' Sa X .= a-- u J= Ea C c -C>, rP 3 s: C- -- = 5 a. o > s ^ bPj .E ^ C s ^ y E ^> " y "3 y y is s yE y vs 'n " I a^ -- ~ _rz % ^ '- -8 & = 5 E "3 y -- 5 V^ ^ 5 3 - e: *r r 'Zfj cr- 'a: E 1S ^ ^ "bh ^ -E 'J= d yy ~ 'C y =- " c- y u- rz y ** C E o y '5 y t E-- > E a. " 5 a. rz 3 zr rz Ey xE_ *y 8. ^ ybL ^ 5 -- c 5 u5 y" r; .>` oij S ^ .. Ee y =u gy --E y b/j -E 5 = t3 a. -2 c *r -- sac E "u > -^ .2 a a c Ji ^ '/~> -2 aa - E. ~ t _k 2 ? > E 3' = y j = - i 2 - a a . ^ -- br. - E r: X v: -- r; _ -- y ^ 'E: - E t: " ^ > E jz rv. 1= y 5 *r - EE -- ill 8 ^ - I 2~ oa. ~ '-2 - 3 c - A J2 u X Z- O .E E v: w E J -2 S 7- " yw .b = *c y j-. E j = M Is1 e 11 *i H."c " IE i 114 i .E - ^ - A uy iE. JE - 4-J c 5 E y __ E rz s '-a r; <* E Cy *-< ^ ~r. *- 3 Er; r*": y *y- ^y > ^ Sj `3 ,~ rz " x 5 f 8E y >. ~ 3 E a' ' = 5rs E y *-i--3 = = 5- J!12 E rz > & i 11'jLi 9 -82-22 y y-- v. -- y - >- sill5 8 8= E rz k. - 8 "3c '-a E g 4 3 11-5= a >. ?i -5 CL a 'u ey s- "3 S. | 1 3 _8 |" 8 3 i 2 s = E - | b -E L= 2 4 'Z II 1 e5 % & 8 SE 1 I> S | 1 5 Iu: 8-3 C CyL n<- - JE 8j CL E bfj E y9 0y > "3 Z -Jaz E 8 E b _y Ec 8. 32 5 5- 8a ^'5 a~ > C^ u -"- -- ^^5 2 X5 ap a--2 aa = >: 2 e: ~ E E y v >. "3 C3 1 ^ ~ - 't 3 <j ? 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IE y IE 31 -5 E c ~^ l3` r: S3 3= 3 C 1 .y . & -r ^ -3 > -- 3 -* '3 3 71 u = "3 75 " b/j 3 v. 3 "3 b .i u. 7^ ^ T* 3 75 3S -- --*3 X~ --3 -- 75 3 ^ J- -^ 3 -- -r L7-, X si -i Sl 11 --i r: - 'y y7 --> 2 ^ "5b c "y = E *- 3J ry j-r y y 3 c ~ Q. 1 rE c 75 5= M r.E E _ 5 i c --y a. C 2 7 3 a .R ui <2 x -R Cl. x 'Jf sj KT C: { O R R -q & R ?s -R t -R cr -r Sj C -R Cs r^i 4c) ~ iy-- _ 2 V jz X V u o u C- _ Si's stO =" | 5bO g u ~ 4J :-c u JZ L V tCo -FbD 0 *5 U rz c w. "4Oo-- U C<uL c >u O JZ 0) <u bo 4_' to Jad u< O a, = CJ bo cs C SX c < 3J bo u C3 c; JZ to IE -3 j* c U CJ bo ^ u 5 u, ,P 4bio bo ^ c bo ~ o>. V> bc w^ c; -- b) t? '5 c _D o > "C <u >> *H = "3 OI "bo C 4> C jz 3V u C<3 s_ >? bo & s hZ > *-i - c .Sdj Z 3Jn . < IS 6a O -r b) c u ^ to bo iV-/ = D C/3 - to 'u oc CO 'bo tK>> ---; >, "E VL,, b) JZ V JaS u s bo L- c u_ E 4~ --- c5 JZ o u to o JZ c to "E JZ CJ o <6 N u }-< hC V 4-1 c bo a CJ CJ L> /^N L. U O , u > 4) C/3 *-- S D v*- to O <u ^ a to <J u- C5 cs -- ZZ J* b> O o^ S.-5 C C/3 8 jj - % :-o *5 bo c 'w us J*J CJ _0 <J o> X0 X P JZ OJ V c a- ^ "S <t 5 s a. 2 a _to L> c to ia V u V; r- to 5/5 CJ .b ~o c c " b) CJ y j^- ^ _ 3J -- y JZ -C ^ bJ >, b>> ^ '> *5 oc V  s' . *5 o 5 k. si 5 C Chapter Nineteen I I I i: K\CKS o f c i i a n o k . N o huger can m ining operations be thought o f as n " man's business. " . I collective p o rtra it o f women at i rork at Phelps Dodge A lorenct in t Sara Sho/f S X /F.IV Metallurgist (upper left): Connie 11addell, mine engineer (upper center): Patricia Young, supervisor ehange agent (lover right): and Rachel Alc(.arlhy, haul truck d riv e r (lover left). It b- I 11 _4 .s = b5 i 7. s> a _| t -s =5S: ^ '> -I r <S '5 -5 I? t- j: -g .a ^ =S t i- 3 = s ?= * = 3= 5 1111 y = -3 C- 5 C' J r2 a~ l ou c E $> -5 a b ' I 1 i_ -> ib c. c" &S J3 4- S -5 fe J -3 ss 3 y E *v 0 h Q 8 I s. 3B3 `E y 0y3 S. c 1 ^ o tx E 2- - -- & - 3. < `u = 7Z ^ > rz hr. rf E ` cc 2 sy- '5C U4o- Cbc_ r8 o' o ^ 7C 3 J3 9 y _3 3 "5 ~s -y w-- sg . > be . y 3 y -c 3 5 3 rg_ B O vr:! c>: . b3Tj 'E Q- _i_ 8 > u be rz 5xE 5 o cL '7" 3 c: tn =f 3 3 _C_ -Ec E y> 3^ 0 be C5 u 1 3 3 33 E- 3 '> 3 33 .x 5 -- j~. b3fi 'E cr-T y >. 3 y- i y3r 333 cL E 6 y -5 1 i O yy3 s E 0 IN ~/=i y f 3 rj 3y 'E o -c x5 s_ 2 73 y 3 >. 3 3 .5 ^ >% <: .E J>, -3 2Ey I1 '"" -> E HJ 3 & 5- u = 1S2 S `Eh *g J=: y -3 y S- E5 C 3 , up hi cssi -33y 3 be 3 %. b3e -3yb3cy?e 3r: r rz "33rt "y3 rr -- u- ~ 3. c y Cl. V. r i 3 c: * V, _3 3 be * s _bJj CJ y be 3 5 3 C rN 3C a j. 3 % y -3 a. IE 3 y _3 y 3 y --C 33 y c3r 3 3 "" y ?J -3 3 "3 C3 y rz u C0 % c3 d u 0 < &t 3 s Urn " ! 0 O a, E < 5S -- c <rz 3 rf c 3 i 5 --3 15 c 3 -3 .=c c3 3 = fcjj w M ia m i, Arizona, and a rod m ill in C hicago, Illin o is . T h e abbreviated fam ily tree fo r Phelps D o d g e 's newest m e m b e r starts w ith tbe fo rm a tio n of the Am erican M etal C om pany (L im ite d ) in "3 --u _y. y 1) bx, Os C3 ~r U -C --`3 c 3 -c "3 y c5 s _c C> -H" = v uy 3D O 3 s c S V I '5 _c C S ~c "*= y y= c T>-Lj "C2 ~^ o -5 3^ 4-> 4-t S" 3l ' V b 3 'X. c cJ 3J -C ^ j bt c " - 9 'E V JZ CL building proposed fo r d o w n tim n Phoenix. T h e m ove co u ld take place as e a rlv as N o v e m b e r 2001. binallv, the tw o executives w ho did most to open the dram atic new chapter of Phelps D odge c. " 1 * _=_ J2Z_ U 3! - t s H .yE --- . 3 -" v i? -y ^~ sf, "5 --7Z V E~ a - a . y t z - .- o ^1 5 -- V Z= tL . -= > s>. y rz J $ V 5. $ 5 1 5 5 I i | J11 I at ivbieb time he srn'cd as nnd chnirm nn to u r m onths Inter .it Phelps D o d y e 's nnnunl m e e tin g Ite lil on A htv t, 2000. when Yenrlev re tire d n tte r m ore thnn lo rtv venrs ol service. lo r both men, the ncipnsition ol (A p rils A n n s w ill stnm l ns n m n jo r m ilestone in is incrensint*'ly g lo lin l nm l c o m p e titive . N o one, w h e th e r Phelps D<ulu;e, A S A R (.() o r (.y p rn s o r m o m nm l p o p shop, enn n llo rd to he si 11n11 nm l in c litc ic n t. 4 ~5i <i 3| 'ui I T.1 c 4 if 5 lJ b I -5 4- V -jj ttj -A ^Tf 4 5 s 'i ss ir, c% 4 a.s 3c 5 5 E J &. = ! 15 5S 1 is 1 |l a. 4 1 *1 =a-- z'--' 5 Sr 4> -5a .5 $ '5 ? -t -s -y 4 3 tl, 'x ;~: =. .55: fe > r a**** "C C' II 2 ^ 1 <: i.M ! -. | ==> ?-. x -55>' * c ~ i !' 3 S f-j "T" ^ .S2 ;_, ^ ^--- z ^ J =X - ? ii i I u b- c5-l "5 1 g& I _v "&!= Jz *CS55-j >. u < --i,j jj %ii. ss -^~ s Tt I -ti- ~ 2 3 I I '> - 4t E i 5G '4, " <jr < ?| T 4= 4 Is 14 .a 4 C^' .-'S~ V '5 > * -. c4S 6 u5 3 l- cc 1P J 'I If 4- | '" 1 X 4 4 b o 5 4> : - o rise t | a^ a iI 4 5 jc tL- ?v 4xr,, -iI f= s f- 4: s: ^1 44 5^ S "5= g s < I! _bJ, "5, x X 5 'L la .-- 7 4 c- + Z - J2 14 = '* r I4 =4 i x 4* NOTES I'cdnntion o f M iners ( D e tr o it: W a v n c S ta te U n iv e rs ity 1 ress. 1972), 2 ?.' "P ream ble o f tile In d u s tria l W o rke rs o l the W o rld ." '0 I f j. -i z || 6 =3 Ii -j s Ii a: < c* r 4 J3 _ ' -s .* -2 - rr . 5 - , -. =a Z1 ;5; Z -if g *5 ~ - ; * 4-- 4 E 1 -5 2 fill I | I s |l 111 ^ II s =1 -J ,, i3 <~ == Z :a 2 < t/ __; g S < J > c 2 4I d^ * z 2 % '$> *S sH a1 c= Z -J 5-- 7- I O jc s a t _! I CJ uyj I 3 I : .2 = 5E JoS i t I tc g .? It 4 IT 1e " J- 2 a; 2 4 y. ? 1 5 5 -r- - * ="* -i. " I ..a I J- fl .r a i ^5 5Z .= -j = C- ' * 5. z 1I tCi Wj *5 - \r. H u -- ~. =f ST I ,A > f l 14 42 S '. 3 3 zZ 2aE ' (5. z -3 wpz Ni xf- .2 5 - <" 5. | I "O' r: 'S. I 2 _z %i c. 3I _b Qc = 1$ ? -c I l% ^T at;.; t s-d 'C c$ X -S 5 cs s ^ -- \S iH Z . c - - ^ b "3 1> 1 2 s: :i -X Z 2 5- S. : 2' 4 S5 ill " 11 x o - - 1 =: i -I -i J 4^ ^ I ? j 5 4 S. A lb e r t W . A tw o o d , W lie r t- I la v e t h e M in e r s ( .'o n e ? "" S n tim ln y F.ranm r I 'ust. M a r c h to , 192 t , p . 7 4 . A s q u o te d in 'lin n V n iiy d ia n , I'.v e rv d a v L if e in a" 5: 4 I i a rr-, CtL U >5J "S h0. br 5 < s u -i. | s: i 3 M 52 55 <2 s -2 C5 % -I 5 r. !1 "^ c f'S TJ I6 ,r g | tj * -S'- r Z b c iy, 11 ; "4 - Ss 4 ^ "3 rrj N- X. ^C3 Q a _C Letters n .p ., 1 Letters A rth u i '9 4 5 ). Phoen T ra in : r-t r^, 4 c< g S2 a; -$ 4 ?. ?^ II =i ** zZ t: -2 ^ r- s_; !l ? u^ 4 ! ?| =5 2 4- -' -i: r a. = V. * 14 ^I 'r ^ 1I r: s~ J i S & I l- | cca> c = -z -t- l 5i c r4 s* Z <c I -f -2 s< >< -I* t -5 11 4 0 sc '5 E = a~ * -- 2 1 li 5 Jo << 6 J* r >zI It a C Sj -- "Z -h x 1 2Z fcu c. ,, 1 ?' J i& Z3 c .N J 1 C s H I - p Sf 1* = z 'as' 5 z i; J5 c *1 d! rX-- "1 "X c LB=c> &o >" f-, U ^= St 5 * ~3 -2 T. fc. a- 3 I lz ? =8 s- *- X A ,~ ~ . ?! i s JC -- -Hi X>o. 5 f s JX= 1-1 0 x -a ii x HL 3 sT; h .is --, < .= S I1 ii 2 I 3 ~ >. X7Z _r J c 5 r: ? js . _c % s; 1 l" .- VO - c^c 1 -i1 ZZ -23- s z jo 1 zl -c '. ~ < z 1. * ! z I- =5- <} ec -1. XC S t 11 J1 x x _x X 2 20 1 f 5: 11 0* s -> a S- as Ji 'C J I-=r 1Z c * sp =t t rS- X 1X /: 1 rz * - - V e S 1 fc -r ig & X iZiz *"t- t: ^ 7. I SB " ,7 -f F rz i i^ a. ^ z X. r^- Cx i/ tz C ll| 5: c c ~ "a ^ -^ = I -s . 2/ 2' 2' 5/ t; r= ^-- c 1m O 4 a 5. S~ ^ ^r. 4 ? - ^oo ?C5 iS i! i. o oc 2 _ d. i & Ss' i 4- |d r-l 1 E 11 3 s" c 7- 14 1 s I JL if y uC 1 J Ji *> 1 cd I - -22 22 ss, &=, << u- ! 2= u i ? :- 5 XL i-c 2 =I^ kZ 2 1 ^ .sr s= ^ 4 ^ s ,, -C -< Sc d 2 5 .2 44111- ^t > O C ~ i. c. '-i. as b. I I I 0 'l 5 -1- O' Jl 2 S I5 * ^E <i > sI $ -S - J u ly 3 , 1997; I'o r l ll/iy m - J i> iin w l-< i/iz fllc , A u ifusi 24,i 1966; I'o n liin '/ic S 'cirs-S cutincl. August 24, 1996. -. I n t n v ic w w ith I.. W illia m Sc-i<In 1:1 ,n W a s h in g to n , ! ) . ( '. , M a y 1, 199K. Jnntes K e a rn e y's m a n n se rip t h is to ry o t Phelps D odge. 7. Iro n A ge, D e ce m b e r >1, t t / t y , |>. 35. K. Phelps Dodge Today, S e p te m b e r ic;So, p. }, am i D e ce m b e r i<>Ko, p. 3. 9. / `helps Dodge Today. M a rc h 19K0. p. 4; FJ Paso Tunes. 'Z < i4 44 4 ~ V "g I I '-S S -S br b # A 4 4 4- 444 4 c ^ -t < i: > TZ E sf 4 4 4 t; I f E. t -g 2 2^3 S gS d. c .r )S d. =2 S == Is 4h SI M C- 4 ,` JZ c *< .r -- 4 l I rz I 1 ft cz: a? -- I! I* >. 4 $ ty m --- E. .s 4 :!l 3 |4 <2 ^ ? = 11 J J5 y^-- s 5 N g: til . ^ &s co as 2' 2' 4- 4- 44 .o- 3- & .s c < y rz z I ~ s .3 V EI 3 g Te 2-- 5 2' % -H if 1c z -c ~ n- 4 'i y = t - S -is a rz I r* IS T ^ v<.e <-- r Z 'u E_ v: Interview w ith G eorge M nnroe. N ew York C itv, ;M;1\ 4, Tt;<;S. Husuh-ss H i l l ', In ly 21, k ;S o , p. 66; in te rv ie w w ith L. W illia m Seitlm an, W a sh in g to n , D .G ., M a y 1, ig i;X . Bustness lle e h , A p ril 12, n;S>, p. 5, and J u ly 26, tc;K>, 1 d .= e .2 w 5 N . < < E 4 -a g J 4 2: ir~. , v*- | 4 j52 d. ^ ^ "t* - : a - Sibr. -E 4..- ~-- --= <"-- * .5 t* 4 <4 Ui -c 5: If | n'> I 5 5 g 4 == tS 4t 14^ &. :s i -= < 44 l I ~c5- as 6 u~i 'C r-. a a-g ss 15 \j -5 s | E 14 <i 11| ^ = $ < & g r I i tb c rSIIix $_5 ^l 1 -5 > ~'1 AS a* b 9 2H 3 - ~ b * r= tl i -IIC li & s s f % . iM -- 9 CO 2M ' - -2 |% | o~ Mx Ci Z= sa if a 2*C -"3D " cr 'Z ^< =7 I f" =^ Ala rc h zz. n;</>. Interview w ill) A rth u r K in n c lir `r< i, Phoenix. Alareh ifi, (i. I). '.. Yuarlrv, " C o n fid c 'iit ial k c \ie u <if W o rld C o p p e r Industry, August i i ; 8 . j , " pp. s -C u p e s c rip t fo p y in I'lu'lps |)odye C orporation arelm es. I'hoeniv In tcn ic w with l)titit>las ( Ncarlcy, Scoustlalc. A ri/.. I'chniary 17. 1907; I'liw in 'hil llh r h l. D c ir m ln 'r 2 t. |<)SV>. p. 101. S. 'Z * a jS 'c 1 fgJ- E Z 3 ~ c % ; 1u- -i z G t: z < .o t e _a H Id ^ i -T -- s Z '5 > - - -tfj 5 g -= g E zj 5i Ey s. 'V. _3 2- Izi 44 .2 `5 S *1 S4J I I s'= P? z^ z a Z -- - .1.1 C -- g.d g:^ - w - *- ^ _3 , ~ : 1 :1 2? -5 I- S ~ i -5 S HiCz Vz i 4 l c Z 5 _ 44 z iV -- " _r CJ | 1 3 'i j d. ji 5 c * zc 1 Is 3. -- _3 X_ V. s i: - c I =s =. .~ JI 2J ^ 5 I X a 3 j: : s ^^ c 1p - u . -5 s :. I -- 111 "3 c *_) 5 c. J s = >c 5: E 'N ;5: r- Ci _3 ~ > _3 S, s_ c: ~ -- 4 ^ %* z -x J4 P = d ,> _2 ?i c .a -. 55 1 % : C ' 1 V. n 2. - ^ 5' s E _ TCJ * == X .t: =; z4 p z 7. z == = 1 '' ii' -= r -il s if >. &s^ s^ -<z ~ T- I ^ i sf c C3 c ii- * = ? S - ^r <2 a5 -P 1 I- ^ HI 3 JZ I? s| " C l.z 3 13 ac 3 3 z ^= &= -< ; s- |S 1 3. ~<*-"'. .3 r_j _2 ij x. .5 'Eu 1-- Z. f c5 Ifrf= G I <T i-.j | a z x g | g= > 'E =1 ' * 111 4M C 2 J3 -5 5 2= 1 -3 1o I g s 4 "I "I- a 2t- # 3 i | -5 % - b' = n i' p 4-. -3 ~ 1< 2C z 3- 5 4 I 1' xw Ef x" 5 s c|Z -a jy r1 3 '~r- -I s 2 '! 1 111 sl I 1 * Vg H 7S prf- cu ^ 'r 3 >- -r- -+-- P > ^ HTZ% >. r: o zj Z r:' E M 1 55 Z Z Z = 2 1 i x zz 3 y 5 -= s 5 11 1 "E 5 - =z 5 Z Z .3 3 ? >C I 5 l4 u r e: = C *C H E -- g Ij c~ lii S ^ Z i : - S 4 Schw.inlcs (sent la ii' iy^K). Iim -niew with A rth u r Kinnuhcry. l ' h<>t nix. Alart-h Mi. ii;ij . LT1 _ L2D C=D CD cm f ,-:y a. i. .2 < - &S - '_H I - ;E 5 3> = J-- -z 2 -UE --, . i -I ^ --. _.=E |JZ JE 5 -I -I * zIlls! 3s 1 1 ~ I 1 J > Jyz II- i- 'u _C* --re 5 -e s".i s> J- 5 cI I 2 il l4= Jt--i -=re' P _5 :' ' ~? ?-- C x. -- ^= -=>. d 1 25 25 ~r. i'2 ? ? j! ' 3- O -2 ~ H -i' 1 g ' 2 = i! Sts E~ 5 : /o' c i- s E ^ = 'S. 51 --y 2C i ' "C s. C == _= ^ E- 2: ^5-5-5= =. 5 - | 'E vd S I k VJ = .1 IA f^ 5 S- 1 1 _ZE_ y =h _2 2 - f -;f f 23 Ek -r Ji -5E >. *u i E j'. S. j_: ;S Z -j 5 rj. y- .2 -e _ = 3s ~ - JZ V> 1 3y ^t" sh C Z 5 =i X " --. - 0 if '5 5 &E ~ i. '5 : i! . . 5 "= - ^ = ;l ? i * 5 > S ' c i 5 -5 'ES? '5 y>2^ M= ii >=2 2= t -2 C .- -r - Ef, '3 j.'" = c I jiiJJ ifji ?^ E 2 i E Z =: 5= -5 Z - > In te rv ie w w ith K o h e rt Je n kin s, n icsn u . A n /... June tyyS. In te rvie w w ith I). \id lo ltn n , P hoenix. June 1. iggS:( : N ovem her i^ , 1997. In te rv ie w w ith i. l\o!>ert D u rlr.im . Phoenix,( N o ve m l> e r 1^, i(;<;7- 'o <2 Vbjj O O o zCO a bJj CO. Os Os >. C <u c t/1 bij oroOs2 cOcoo ^o --o CrO: Co Z 3C rf* GLOSSARY SOURCES A N D SUGGESTIONS FOR Jt > =Is = K a: " = 11 i -s i .= <y. ~= i =^ s -r .rt - n E 5 * ? a= -- o i x --r I 5 > -- II -i=r IV, I*? -C2 Ct~A * 2 =-: - ' =' E E' ? :/; S .E -5 i % i rz 1 L =E - = I .H J'. '"v -- a -- --- "iZ 2 5 " = if _- _= if 31 5, _E :E 1 ^ - C S '-^ = i*' -- Wr 5c 5i) '. = E IE 5 = A" ^* ZC --= ^ - '= s ^ ==b=e 5 s. V. $ V< vbo ZJ o ca (J -- r? C zj _bo 0 ~o c a- o ,_ DC c cc zj r* J 3 CQ .m, ^ C CO <u 2 b o Z Ba .9- 5 v5 !V--; bu 5 c <J c EC 3^ ,<ss r^ CO "C bo "3 C >, bn c <s> .a 2 Cj ^ "B o- -ac- s<os r *j rz c ~c uc CO -- -c ^ jZ | 3| 9 -c -- N 5^-0 Z b2a. oV>I SJ C3 5 ^ 5 go '" 'rZ5 p z Sc C n - ^ <v *> 3 c >, -5 3a C_ ^ ^g bo .9 . s u -e 3 O u E bo _o o c J-. P o .=bo bo C 0 w u S a7&- z s u= a. > P cP o Q U c bo S C3 r _c . P" c> c " " u 0 s a ^ <-- JS u Co -- U _c tt! s S> 0 p* rr O CO u < u. I 'E c Q n . ,, 4) c >> C t ou- . VVI, V u 1 J c ?u3 _3 - >> ,C o (/) is u o sp bo ou < -D <u O z cu3a. b C w| J3 >-i- E1 <4O3 u 023 d" ^ .1 .5 S o c `c sOJ _a VI ca ott-u v3T X u, Ch QO 5^ U c' : *j Q 9 9- -C o </! co U c o a. 'R-&- & E __ *3 -- --- w 1 .< h Z E R riJ 0 co 3 1 r- >-> ^ cT bo jj D D .2 "c X h c*. S4 Co <k!i O iv'. rl" ZbJo j: x X Z x CO a >, 5 -S 'c fan -I 11 -- 11 -J ~ i) s gI 'c "= j= 11 = -= s ^ valuable h is to ric a l perspectives. A lso o f value is " T h e C o lu m b ia n Chem icals C om pany Story'," an unpublished m anuscript dating fro m 1997. Wurkscapes published in the late 1990s contained news from th ro u g h o u t the c o rp o ra tio n , as d id the C h a irm a n 's Q u a rte rh Letter. M in in g in A riz o n a , eel. M ic h a e l J. C a n ty anti M ic h a e l N . Creelev (Tucson: M in in g C lu b ot the Southwest fo u n d a tio n , 1987); M argaret (.ra w fo rd , B u ild in g the W orkingm an's Paradise: The Design of A m erican Com pany '/ke n s (L o n d o n : Verso, 1995); C le n n S. D u m ke , 2* 1A = cS ' rt > 3 jE .= 1-- T1 55 =Z >< A = < t -r ' t. Zh ,2_ i; =r - I^ & * -1 Sc . c jz 't _2 .i-- & =g ^< ti :i 1 T| < " r-- I t- ' r- -- _= %. a. Mij= 'Z > ^ A' * 15 .2. fe ? 1 = 2 # J" Tt jr! c; -M M ^ oa i : rs ? fe l = .9 * A' a c S ^ I "9 =g r ILLUSTRATION CREDITS 3C fl fl r. 1- SO .2 J C II Ii II 3 ., "r H ' = X ,-f ii ; . J * a-i Z r^i j c Jf~ ? S'* : "c CO u z=5 =S s J-T -= -= ilsi-r s til Hit IXkiiiiW = ^ : INDEX c" - 3; -S - mu in g '=" - - O ~ Z % 2 rf '"[ u K 5 1 S' .j i J1 o- S 1 ~- s d * - C = 1s4 Sz^l*-^JS o 1 f - ^ 11 s i 3 I 11 4 Jir illl 1 ?l Nl U- Li.' Li.' Lii Li.' r1 's' * i ^ -z ? m i!i = jJ ^ rr ~1 Js-2|-1l Tf i_ I i'll j|r cM` ! * E i .... c w' s - = i l! , r ^41 -x I " . r < i i ml 7 e = is Ji "TESi?l = >d 1 .si i. $^ 144-i s4 i ?A 6 a5o 4= .y 14 4 S- r- 4 S% = ;zc r?c -^1 j infill "5 S S s f 14mj 5| r- sO v. m f- E - I 4 ^ - -r O' j : 5 A-; iii 5 iA 4 o- B .".'3 X < 4.1-B rl 5 DC- ~. S V" ?! ? 7 % 4 -3 -S 4 "= si r 4 1 1 ?4 I j=>: 2 =r 14 411 441 1 = IE4^*Slf.iliriil"44. . . ug=4-__ . 8H. J 144 4 S 4 |^4 |.| ! 4 4|1 !| l! 514 If-; i% '> -> 14 14% $i rl i%itl H l ii I 5! 14111! ii ~ ?4 = jz 4 ^ 4^2 i Sc t 14 414 4 :f|| = l nii'Ui Hi 00 O SC Tt-  o' 2 -e ^ -1 - o. 0 m 0T - =^= ~":" i" w '3 *3 a J 'It'S d. ~ '3 " " |L ,, St'S z_ J I'd r ' R- u 1' k 7. <JP * 1 I =. *-"5 -^=5 ^S|,,f*'tS * sr 2 j 2 < J - 1 - i -t'i z I -i 1 - 5"l| ' j s it 4s * ?: is 1. i' r - J' . ~ of -- 2 II,- = .5 " ' Iz tI J- -- i: -i i if C -- < z _= n - dj II c = I ss Z Z z z 1 I* S %%** i ~ c? = dl v I d OC d 1 ll % r= .f ~ "T 117 " "l s 14 ?! = 5 = 5_- d- -c ^ 5 - s ^ ? ~' ='S:- .= s ?ij% -SiP 5 5-l % -f 3 m 'r; :-?Ii ^ tc ~ t I-_l _r. T c-'S ^ s-> s 3 ~ 4'5 = -- -r o f^"t *? VO J c sN ! =sz S 2 _3 ^ Sjj\ H!M U- U. Ly Li. 1 i|| i 4 S ? o - ?=;! * i :ms?! i . _L `r- ~ " 7* I-! t: id. Jx, = I8I I"-- O- 4 -- 4 c '- 11 -- IJ I1 X '5 * ^ E jP 8 5 % -- ^ I* 3 * r:TsC 1 f 3-11 ^ 5 &' !* W T.a I J 5f T i 2 3 ^..:- ^ M f. S *J ? "2 6 U&lli || = IS i rr :C ! 5- r-o . ,, ||| j-ljU -* r.2 J ' c" & r 2S c fi-s s' = S-JS lllllll1 MVAik II 4$ ,:~' "'S ,, i = .r I I- c-C' " ---"." -= -X '- -I *1 -I jf I ?J- 1 S =" r ". : .;-= = = 7C 1 " S C s. ?- ^,- =S .z =r-5g ;,-2c-3;.b^C- /;gB - =~ !i Tr._- oT = 4 - * ~ ! sr till14-11 ?! IIll Ui'ilil - ~ 4 >.i '= SI 2. == ;i-` ; 13 I -- -- - =. . _r --' i ~ 5 r- J- O -- - - y -- ^ ." .- . ~ ' y. Z. X -Z - Z ir. ~ * -i 1 2 g =" T t g t it t 3 ~ 5- H ~ 32--' i" x ; y. " .J2 _ 8 I ^ 2 S'! 4f'SQ i 3= *= *13% 5 1# ^S3>-3S23# "5 - *3 5-' 5s ~ 3 # 5 1 --.-2 2 I s-Isi--JJ--Liff 15-11=,5 21.5.2 --a5 25 s5 2 --ii }7I=2 2-= ? Iff I #3 J | J|| =35g gJ c1jU1 =I *i- 8*. J. 2 == J4. j1 f^ |5 I*f S t i- = C 1 1 2 o1" 3 V -1 1 5-i b mr*_ >c r- i i 2- S3 I SI- ll i i| -c 5 --' ?x ; 5 ; 4 := 4- i ., 5 =="= = - C ,5 S ,, s 2 4- " -S 5 2 i - = r5=.3 4 1 I I 5 3111 tin ^ Ml c!F 13 H - "l'^- --= 3* 2f- - = c_ i. i. a. c_ - About the A uthor 1992-1994. Awards com m ittee chair W illia m I y u .v* C^ O -o <t.- * <2 & o oi r- .>k S3 C 4S-> 4X-* S CD ^ *r, bo r. -- u. X cj o a: d> -C bO ^ I J* ^^ ~O>u < >5 wCJ B 0 Q CJ cc u *s . 3 X tT u <L> `Xj C3 c Ch c 9^ CO *w *< C a; _c `3 "5 V JCM >, u s aj > ss S -S0 Co Co "Q -5S M bi ,,x 5 j*t2 . ^uU U- C c< ^ "u -G O . u c=b u .o v>. w $ . -5 -c 2 J* CO " i: ^ S C; f5 p) tH Co ^* "3 fc; +cSr>r +g?-32 ^ ou o J Cu *bo 7^ c u- '7 8 0 8 1 6 l,5 1 9 4 3 9