Document kXo9aq8wmqwmp3MBn709zeGq

Frxocri g. Fitch (lne.), i Purl 81, New Tork. A--5586 COMMITTEE ON STOCK .LIST, NEW YORK STOCK EXCHANGE. ANACONDA COPPER, MINING COMPANY. (Organized under the laws of Montana) CAPITAL STOCK (Certificates transferable in New York or Boston) New York, January 17, 1922. Referring to its previous applications, especially A-4346, dated May 14, 1914, Anaconda Copper Mining1 Company, hereinafter referred to as the Company, respectfully makes application to have listed on the New York Stock Exchange $11,656,250 of its Capital Stock, consisting of 233,125 shares of the par value of $50 each, upon official notice of issuance and payment in full, with authority to add not to exceed $21,781,250 additional Capital Stock, consisting of 435,625 shares of the par value of $50 each, on official notice of issuance in exchange for outstanding Common Stock of The American Brass Company, as hereinafter set forth, or on official notice of issuance and payment in full, making the total amount applied for under this and previous applications $150,000,000 (total authorized issue). All such stock will be fully paid and non-assessable, and no personal liability will attach to stockholders. Pu r p o s e o f t h e Pr o p o s e d Is s u e o f St o c k By the terras of a contract entered into upon December 22, 1921, between" Anaconda Copper Mining Company and Charles F. Brooker, Rovall Victor, Harris AVhittemore, Adrian H. Larkin and Charles F. Bliss, acting as a Committee for Stockholders of The American Brass Company, this Company is required to purchase and pay for all or any part of the shares of The American Brass Company, which shall be deposited for sale to this Company on or before the 31st day of January, 1922, with the Colonial Trust Company, of AVaterbury, Connecticut, or the Mechanics & Metals National Bank, of the City of New York, who are named as depositaries for such stock by the terms of such contract with such Committee, provided only that at least 51^ of the outstanding shares of The American Brass Company be deposited for such sale within such period. And it is further in substance provided, that if at least 51% of the total outstanding shares of The American Brass Company shall have been so deposited on or before January 31, 1922, then on or before February 10, 1922, the Anaconda Copper Mining Company will deliver to the respective depositaries for the account of the depositing shareholders of The American Brass Company three shares of the Capital Stock of the Anaconda Copper Alining Company, and $150 in cash for each of the American Brass shares so deposited, and will there upon be entitled to receive the deposited shares of The American Brass Company. At this date (January 17,1922), there have been deposited for such sale to this Company under the terms of such agreement, an aggre gate of more than 519c of the shares of the stock of TheAmerican Brass Company, and the obligation of this Com pany to take and pay for all such shares as well as all such shares as may be so deposited up to and including the 31st day of January, 1922, has become firm. The American Brass Company is a corporation organized under the laws of the State of Connecticut, and has an authorized Capita] Stock of the par value of $15,000,000* consisting of 150,000 shares of the par value of $100 each, all of which are issued and outstanding. The purpose of issuing the 233,125 shares, listing of which is above provided for, and which are to be issued at par for cash, is to acquire funds to the amount of $11,656,250 to be used and applied in payment for shares of The American Brass Company, under the contract above referred to; and the additional 435,625 shares for which application is made for a listing will be issued and used to the extent necessary in making payment to shareholders of The American Brass Company for shares of stock of that Company under the terms of the contract above referred to. The Anaconda Copper Mining Company has an authorized Capital Stock of $150,000,000, divided into 3.000. 000 shares of the par value of $50 each. Prior to May 19, 1915, its Capita! Stock was divided into 6.000. 000 shares of the par value of $25 each, but upon that date, by proper stockholders' vote in proceedings conforming to the laws of Montana, the number of shares was reduced to 3,000,000, and the par value of the shares increased to $50. The certificate of the Secretary of State of Montana showing that the reduction in the number of shares and increase of the par value thereof had become effective was delivered to the Secretary of the Exchange on the 22nd day of June, 1915. By letter addressed to the stockholders of the Company by its President on the 21st day of July, 1915* stockholders were notified as follows: "New eertifieitea of the par value of I5Q each, will be ready for inue tor exchange for the preeenc outataadisr certificates, of the per vein of *25 each, o d tod after July 22, 1925, at the National City Bank of New York, 55 Wall Street, Mew York City. One there of the be* 150 atcck will be iaaued for each two abarea of the old 125 ttock; end in h im where tuck exchange eea not be made into full eberee of the new certificates, bearer scrip certificate will be iaued lor the half there." It appears from the records of the Company that certificates for 2,330,528 shares of Capital Stock of the par value of $50 per share have been registered and that there are outstanding and unexchanged 1,252 regis tered shares of $25 par value. It also appears from such records that an amount of such scrip is outstanding which will require the issue of 96 shares of the par value of $50 each upon being presented for exchange. The total number of the at present outstanding shares together with such additional shares as must be reserved for exchange for scrip and old certificates, is 2,331,250 shares, leaving unissued and now available for issue for the purpose of this application, 668,750 shares. After disposition for cash of the 233,125 shares, the listing of which is first above applied for, there will remain 435,625 unissued shares. Inasmuch as the Company will be required to deliver, under the terns of the contract for the purchase of shares of The American Brass Company, 450,000 shares of its Capital Stock, if all of the outstanding shares of The American Brass Company should be acquired, it will be seen that it will need, in such case, to supply from its present listed and outstanding stock, 14,375 shares. Provision has been made for this additional requirement, and the Company is in a position to make a complete delivery in accord ance with the terms of such contract. At the meeting of the Board: of Directors of the Company, held on the 20th day of December, 1921, the Board by resolution duly authorized the execution of the contract aforesaid with the Committee of Share holders of The American Brass Company; and at the same meeting authorized the mailing to all the shareholders of the Company of a circular Ietter_by which they were advised of.the determination of the Company to enter into such contract, cnc! of the reasons therefor, fiich letter contains a description of the property and assets of 'ihe American Brass Company, and states the plan of the Companv fer dnam-mg such purchase ' * 1 ; i I j ]S12807 PNYC00009169 J W-sgfb. \ ANACONDA COPPER MINING COMPANY-------FOUR Capital Stock................ ........................ Account* payable.................................. Reserve lor connoycadee. taxes, ete. Surplus at befioninf of year___ Add--Earnings (or period................... LIABILITIES , ,824.056.776.82 2 192 999.49 Deduct--Dividends paid At end of year.......... 1,200,000.00 S15.000.000.00 996.358.40 9.374.524.30 20,063,788.33 S46.034.671.03 Resolutions of the Board of Directors of the Company, were passed at meetings of the Board held on the 20th and 27th days of December, 1921, respectively, as follows: On the 20th of December: (a) Authorizing the making of the contract subsequently entered into with the Committee on December 22, 1921; (b) Authorizing upon the execution of such contract for the purchase of shares of The American Brass Company, an offer to the stockholders of the Company of record at the close of business January 3, 1922, of the right to subscribe for cash at par, on or before January 25, 1922, for one share of the present unissued Capital Stock of the Company for every ten shares of the stock of the Company registered in their names respectively, payment for all subscriptions to be made on or before January 25, 1922, tt> the National City Bank of New York City, for the credit of the Company; (c) The mailing as soon as practicable after the close of business on January 3, 1922, to the stockholders of record at the close of business on that date, of proper assignable subscription warrants; (d) The issue of proper certificates of full paid non*assessab!e Capital Stock for the number of shares subscribed and paid for; ." (e) Mailing of the circular letter above referred to to all shareholders of the Company, announcing its plan and purpose of purchasing shares of The American Brass Company; (f) Approving forms of full and fractional warrants for subscription. On the 27th day of December: (1) Approving the action of the officers of the Company in executing the contract of December 22, 1921, with the Committee for Shareholders of The American Brass Company, and ratifying and confirming such contract as the contract of the Company. (2) Authorizing the officers of the Company to perform any act necessary or proper to be done, and to take such steps and action in behalf of the Company as may be necessary to be taken, in order to perform and discharge the obligations of the Company under such contract of December 22,1921. As soon as practicable after the 3rd day of January, 1922, subscription warrants were mailed to all share holders of the Company of record as such at the close of business on the 3rd day of January, 1922, all in accord ance with the resolutions of the Board above referred to. At the meeting of the Board of Directors of the Company held December 20, 1921, the Board by reso lution authorized the execution of a contract between the Company, the Anaconda-American Brass Syndicate, and United Metals Selling Company, which contract was thereafter duly executed under date of December 27, 1921. By the terms of this contract, the Syndicate, among other things, underwrites the offer of 233,125 shares for subscription, and agrees to purchase from the Anaconda Company, and to pay at the rate of $50 per shares therefor, in cash, all shares of stock so offered for subscription which shall not be subscribed and paid for by the shareholders, in accordance with the terms of the offer; the Syndicate to furnish to the Anaconda Company all the cash it may require over and above the amount which shall be realized upon the underwritten offer of the 233,125 shares, in order to make full payment for all Brass shares that may be acquired. The Anaconda-American Brass Syndicate was organized for the purpose of financing the cash require ments of the purchase by Anaconda Company of the shares of American Brass Company, and at the time when the contract last above referred to was entered into with the Syndicate and United Metals Selling Company, such. Syndicate had subscriptions to tbe Syndicate undertaking from solvent and responsible person? or com panies, aggregating $22,500,000, this being the possible maximum amount of cash requirements for such purpose. Div id e n d s Since the date of the last listing, dividends have been paid by the Anaconda Copper Mining Company (at rates varying from $4 to $8 per share per annum) aggregating $86,256,250; no dividends have been paid since November, 1920. By constituent, subsidiary, owned or controlled companies (by '`controlled" meaning stock ownership of at least 50%), $16,386,667. (Dividends referred to all paid prior to September 30, 1921.) De t a il s a s t o Pr o p e r t y Ac q u ir e d a n d Pr o p e r t y Dis p o s e d o f Sin c e La s t Ap p l ic a t io n Subsequent to the previous application, A-4346, the Company or its subsidiary corporations have acquired the following properties: N*zb ol Company A. St o c k s o f Ot h e r Co r p o r a t io n s Whw* incorporated Wtaa incorporate Duration oj chnrtcr CxpitaUutlOB Sb*ra* Shin* atitboriatd iaau*d P*r vrnlo* Shares 'owned by 100% subsidiary cor porations, all tbs stocks of which (ex cept Directors* qualShares ifying shares) are owned by owned by tbe CornCompany paay DaiUd Matal* Stains Co............... And** Coppar Mining Co............... Saatiato Mining Go...................... .. AndwExptoraUoo Co. of Mala*.. Ao 4m Exploration Co. (DeL) . .. Walker Muting Co.......................... Ariaooa Oil Co........................ .. Anaconda Lead Product* Co......... Inspiration Conaol. Copper Co.... Greene Caoaaea Copper Co........... Butte Copper A Zinc Co............. .. Dalxwara D!aw*ra Delaware Maine * Delaware Arixona Delaware Delaware Maine Minnesota Maine Mar. 16, 1918 Jan. 20,1918 Oe*. 26,1917 Sept. SO, 1916 May 29,1914 Nov. 15, 1918 June 27,1918 July 1,1919 Dee. 18, 1911 Dee. 26, 1906 Nov. 28, 1906 Perpetual Perpetual Perpetual 99 Yeara Perpetual Perpetual Perpetual Perpetual Perpetual 30 Year* Perpetual 50,000 2,000.000 400,000 1,000.000 150,000 1,250,000 25,000 10,000 1,600,000 600,000 600,000 50,000 1,228,862-9 266,506 222,600 150,000 1,260,000 16,320 6,000 1,181,967 500,000 600,000 |100 26 26 10 10 1 100 100 20 100 5 50,000 707,192.3* 222526.,317000 160,000 ........... 8,160 4,500 297,300 69,600 159.700 ........... 519.315 ............. ........... 630,000 ........... ........... ........... ...... ........... In addition, the Company baa advanced to Andes Copper Mlninf Company over 311,000,000, for which it le entitled to stock st per (which inveetment ia reflected in tbe property account in tba balance sheet). In addition to the foregoing, the Company has acquired since the last application to list, ,500 shares of the Capital Stock of International Lead Refining Company, a corporation of the State of Indiana, 5,000 shares of whieh Capital Stock had been acquired at the time of the last listing application; and the Company has likewise acquired, since such last application to list, 5,000 shares of the Capita] Stock of International Smelt ing Company, a corporation of tbe State of Montana, 95,000 shares of th Capital Stock of which Company was acquired at the date of the last listing; so that the situation now is with respect to these two corpora tions, as follows: // . PNYC00009HO ANACONDA COPPER MINING COMPANY----PIVB Name ot Company International Lead Refining Co.. International Smelting Co............ Where incorporated Indiana Montana When incorporated Mar. 22, 1912 May 11, 1914 Duration of charter 50 Year* 40 Yean Capitalisation Share* Share* authorised Unued 7,500 150,000 7,500 120,000 Par value 2100 100 Sharee owned by Company 7,500 120,000 fl) United Metals Selling Company, a New Jersey corporation, engaged in the general metals selling business with well established, extensive and valuable business connections, not only in the. United States, but in the principal metal markets of the world, with agencies in England, Germany and other Continental countries. This corporation owns valuable agency contracts for the sale of copper and other metals pro* duced by many of the large operating companies, including the Anaconda Company, (2) Andes Copper Mining Company. Property consists of a total of 272,75 acres of ground (the min ing groups exceeding 5,000 acres), including mines and mining properties, situated near Potrerillos, Chile, about 96 miles east of the port of Chanaral. Based upon exploration these mines contain more than 128,000,000 tons of ore of an average assay of 1.49% copper. Experimental plant now in operation indicates a consistent recovery of 92% of the copper content. Mine and mill site is connected to port of Chanaral by Potrerillos Railway, consisting of 58.85 miles of road, connecting with 38 miles owned by the Chilean Government. At the mill site there have been constructed necessary dwellings, general office building, warehouses, stores, hospital, etc. Port of Barquito has been developed with lighterage facilities, wharves and warehouses. Sev eral dwellings have been completed and a power plant with transmission lines extending to Potrerillos and the mines.' Valuable water rights have been developed, and pipe line systems aggregating mdre than 140 miles in length have been completed or partially completed, for operating the mill when required and for use of power house at Barquito, domestic service at Potrerillos, etc. The Potrerillos Railway is owned by the Potrerillos Railway Company, a corporation of the State of Delaware, all of whose Capita! Stock is owned by the Andes Copper Mining Company. . (3) Andes Exploration Company (Delaware). This Company owns 519,250 shares of the Capital Stock of the Andes Copper Mining Company, and 5,560 shares of the Capital Stock of the Santiago Mining Company. (4) Santiago Mining Company. Property consists of Lo Aguirre and Africana' mines and Lo Aguirre and Farfana farms in Chile. The Lo Aguirre mine comprises about 500 acres situated 13 miles west of the City of Santiago, Chile. Partially developed, there are shown to be more than 8,000,000 tons of ore of an average assay of 1.98% copper. Probable ore will increase this amount to more than 16,000,000 Ions.- The Africana mine is located about three miles east of the Lo Aguirre mine. The ore is in vein formation, and has been developed by shafts No, 1 to a depth of 858 feet and No. 2 to a depth of 42$ feet. Copper is in sulphide form, present developments disclosing about 2,000,000 tons of 33^>% copper. Work to date has been satisfactory and Indicates develop ment of a very large tonnage of good grade ore. The Lo Aguirre and Farfana farms consist of 17,387 acres and 980.3 acres respectively, and were acquired to secure adequate water supply for mining and metallurgical purposes; to control the space intervening between the Lo Aguirre and Africans mines; to avoid liability for damages to farm lands in the immediate vicinity of the proposed reduction works, and to furnish an avail able supply of produce for the employees. (5) Andes Exploration Company of Maine. This company was organized for the purpose of exploring and developing properties in general in South America. Its principal acquisition to date baa been the Cerro Verde mine, which is located near Arequipa, Peru, 60 miles northeast of the port of Mollendo, with which it has railway connection. It is estimated that the mines have 20,000,000 tons of ore at an average metal con tent of 1.92% copper. Developments and operations in South America have, because of business conditions, been greatly cur tailed during the last fifteen months, but will be resumed upon an enlarged scale as soon as greater copper production is demanded. (6) Walker Mining Company. Property situated in Plumas County, California, approximately 22 miles by wagon road from Portola, California. Property consists of 38 patented lode claims and 2 placer claims with more than 1,000,000 tons of 4% copper ore developed and with 200 ton flotation mill connected by aerial tramway with the Western Pacific Railroad at Spring Garden, California. (7) Arizona Oil Company. Property consists of 160 acres of oil producing land in the Bakersfield dis trict of California, which has yielded from date of acquisition to October, 1921, 1,386,000 barrels of oil. Cur rent production averages 33,000 barrels per month. Company to date has 68 producing wells. (8) Anaconda Lead Products Company was organized in 1919 and plant was constructed at East Chicago, Indiana, for the purpose of producing white lead, red lead and other lead products by electrolytic process through an osmotic diaphragm. The plant is in operation, producing 18 to ,20 tons of white lead per day, and has established a new standard for whiteness in white lead. (9) Inspiration Consolidated Copper Company. The shares of this corporation are listed on the New York Stock Exchange, and a full description of its properties is set forth in that Company's applications. (10) Greene Cananea Copper Company. The shares of this corporation are listed on the New York Stock Exchange, and a full description of its properties is set forth in that Company's applications. (11) Butte Copper <fr Zinc Company. The shares of this corporation are listed on the New York Stock Exchange, and a full description of its properties is set forth in that Company's applications. In addition to the foregoing, the Company, since its previous application, has acquired additional small quantities of shares of stock of companies which, at the time of application, were subsidiary companies, and other shares of stock which are of small value. B. Ph o s p h a t e La n d s In 1919 negotiations with the Southern California Orange Grove Fertilizer Company resulted in the Anaconda Company acquiring a large deposit of phosphate rock of high grade, 32 to 34% phosphoric acid, near Soda Springs, Idaho. This property has been largely developed, mill completed at Conda, Idaho, and connected by spur to the Oregon Short Line Railroad at Soda Springs, Idaho. The company has developed and patented a process for the manufacture of high grade superphosphate which, it is expected, will command a dominant position in the fertilizer business. C. Bu t t e Dis t r ic t Min in g Pr o p e r t ie s The Company has acquired all or practically all the following mines and mining claims in the Butte District, Silver Bow County, Montana: Pilot Butt* AJex. Scott Little Annex Claim Robert Emmet No. 1 Robert Emmet No. 2 Kit Careon Minnie Irvin Dosetel and other claims and fractions. Sioux Chief May Joeeph Joyce Mint Quern Myrtle Colonel Funeton Henry Lexington Mia* Orpben Girl Ravwn Georfie Pbiledftlpbie Tom Honey Ster W**t Mountain Boy p^COQOO^1 * t \ ANACONDA COPPER MINING COMPANY------ SIX Pr o p e r t y Dis p o s e d o p Sin c e La s t Ap p l ic a t io n t o Lis t The Company has not disposed of any of its mines, mining claims or mineral lands, nor has it made any disposition of any real property except to sell from time to time small tracts of cut over timber lands, no longer of use to tbe Company, and various town lots and other small tracts not required for the conduct of the busi ness of the Company. Fu n d e d In d e b t e d n e s s In the year 1919, the Company, desiring to provide funds for its corporate purposes, determined to issue its Ten-Year Secured Gold Bonds (hereinafter referred to as "Bonds")* of an aggregate principal amount not to exceed $50,000,000, to be dated January 1, 1919, to mature on January 1, 1929, to be issued in series, from time to time, to be secured by the pledge of the property below described, and to bear interest semi annually, on July 1 and January l in each year, at such rate as to each particular series, as might be deter mined by the Company at the time of authorizing the issue thereof; and for the purpose of securing the pay ment of such bonds, it further determined to execute, and did execute and delivered to Guaranty Trust Com pany of New York, as Trustee, a certain Trust Agreement bearing date January 2, 1919. At the time of the delivery of such trust indenture, the Company, as provided by the terms thereof, delivered and pledged to the Trustee, to be held in trust under the terms of such agreement: 119,993 sbxres of the Cxpitzl Stock of the International Smelting Company, a Corporation orcanixsd and ezxatinc under the lava of the State of Montana, of the par value of $100 each, beinf tba entire iaaued and outatandinf Capital Stock of tba aaid corporation, except Directors' qualify* lug sbarea; 3,195 ihares of the Capital Stock of the. Tooele Valley Railway Company, a corporation organised and existing under tbe lava of the State of Dub, of the par value of 3100 each, being the entire ieaued and outstanding Capital Stock of the said corporation, except Director*' qualifying shares; 7,486 aharea of the Capital Stoek of the International Lead ReAning Company, a corporation omnlaed and existing under the laws of the State of Indiana, of the par value of $100 each, being the entire authorised, iaaued and outstanding Capital Stock of the aaid corporation, except Direc tor^ qualifying shares; - 20,000 shares of tbe Preferred Capital Stoek of the Raritan Copper Works, a corporation organised and existing under the lava of tbe State of Nev Jersey, o! tbe par value of $25 each, being the entire authorised, issued and outstanding Preferred Capital Stock of the said corporation, and 99,993 share* of the Common Capital Stoek of the said Raritan Copper Works, of tbe par value of $25 each, being tbe entire authorised, issued end outstanding Common Cspital Stock of tbe said corporation, except Directors' qualifying shares; 150,000 shares of tbe Capital Stoek of tbe Diamond Coal and Coka Company, a corporation otjanlsed and easting under the lav* of the Stata of Utah, of tbe par value of $10 each, being tbe entire authorized, issued and outstanding Capital Stock of the said corporation: 707,192.9096 ehares of the Capital Stock of the Andes Copper Mining Company, a corporation organized and existing under the lava of the State of Delaware, of the par value of $25 each, out of 1,229,862.9096shares of the Capital Stock thereof issued and outstanding: 150.000 inares ot the Capital Stock of tbe Andes Exploration Company, a corporation organized sod existing under the lava of tbe State of Delaware, of the par value of $10 each, being the entire authorized, issued and outstanding Capital Stoek of.the said corporation: 222,494 sham of tbe Capital Stoek of tbe Andes Exploration Company, a corporation organised and existing under the lava of the State of Maine, of the par value of $10 each, being the entire iaaued and outstanding Capital Stock of tbe said corporation, except Directors' qualifying shares: 256,370 aharea of the Capital Stoek ot the Santiago Mining Company, a corporation organized and existing under the Isva of tbe State of Delaware, of the par value of $25 each, out of 266,505 shares of the Capital Stoek thereof iaaued and outstanding: and 10.000 (hares o! the Capital Stock of the PotreriUoe Railway Company, a corporation organized and existing under the lava of tbe State of Delaware, of the par value of $100 each, being the entire authorized, iaaued and outstanding Capital Stoek of tbe said corporation; ail of which shares of stock now remain pledged to the Trustee under said Trust Agreement. At about the time of the execution and delivery of such Trust Agreement, the Company issued $25,000,000 in principal amount of such Ten-Year Secured Gold Bonds, bearing interest at the rate of 6% per annum, interest payable semi-annually on January 1 and July 1 in each year, all of which bonds are yet outstanding and unpaid, except $326,000 in principal amount thereof, which have been purchased and cancelled through the use of the Sinking Fund provided for in the Supplemental Agreement below referred to, such bonds being known as "Series A Bonds." Under date of July 1, 1920, the Company executed and delivered to Guaranty Trust Company of New York, a Supplemental Trust Agreement, supplementing the Trust Agreement dated January 1919. Upon the execution of such Supplemental Agreement, the Company issued an additional $25,000,000 in principal amount of bonds, bearing interest at the rate of 7% per annum, interest payable semi-annually, on January 1 and July 1 in each year, secured by such Trust Agreement and Supplemental Agreement, such bonds being known as "Series B Bonds," which bonds are still outstanding and uncancelled, except $472,300 in principal amount thereof, which have been cancelled and retired through the use of the Sinking Fund provided for in the Supplemental Agreement below referred to; but of Series B Bonds the Company has acquired and holds in its treasury bonds in the aggregate principal amount of $1,750,000. The Supplemental Agreement provides that the Company shall, on July I and January l of each year, commencing on July 1, 1921, deposit with the Trustee $750,000 in cash as a Sinking Fund, for the equal and proportionate benefit of the holders of all bonds of either Series A or Series B. The Sinking Fund is required to be used by the Trustee for the purchase of bonds of either Series, as provided by the terms of the Supple mental Agreement. By the terms of the Supplemental Agreement, the Company may, at its option on at least thirty days published notice, redeem the outstanding Bonds of Series B, in whole or in part, on any semi-annual interest date prior to maturity, at one hundred per cent, of the principal amount thereof, plus a premium equal to onehalf of one per cent, for each year or portion of a year intervening between the date of redemption and January 1, 1929. Purchased and redeemed bonds are to be cancelled. Ch a r a c t e r a n d Amo u n t o f Ou t p u t Sin c e La s t Ap p l ic a t io n (Anaconda Copper Mining Company; including Subsidiary Companies, entirely owned) Copptr................. Zinc....................... Lead..................... Areenie................. Silvr............... Gold..................... Ftrroma&fuasa Pounds 1,557,698,731 328,367,029 506,917,460 11,233,156 Ounces Lo o k ton* 9,163-274 The foregoing constitute the principal items of output, but there has also'been a considerable production of coal, lumber, brick, sulphuric acid, superphosphate, manganese ore and commercial quantities of platinum, palladium, selenium and other metals. Es t ima t e d Ou t p u t , Ch a r a c t e r Copper. Zinc-----Lead .... Arsenic. Silv*r... Gold... a n d Amo u n t , f o r t h e Cu r r e n t Pounds 110805.,000900.,000009 302,,000000,,000000 Ye a r Ounces 6,750.000 85,000 Nu mb e r or Emp l o t e e s Under conditions of normal operations, approximately 21,000. PNVC00009172 ANACONDA COPPER MINING COMPANY------ PAGE SEVEN. ANACONDA COPPER MINING COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATED INCOME ACCOUNT POR NINE MONTHS ENDING SEPTEMBER 30, 1021 EXPENSE Metals in process sad on band st begonia* of period................... Minins, including development.......................................................... Ore purchase*.......................................................................................... Reduction, including transportation of ore....................................... Refining end selling, including transportation of metals.............. Cost of manufactured products and merchandise sold.......... ........ Administration and Federal taxes...................................................... 132,536,182.89 3.447,862.75 2.500,038.08 4.239.476.80 3.019.129.99 4.363.136.14 949.623.06 Balance brought down........................................................ Expenses during suspension of operations..................... Amount charged off for depreciation and obsolescence Interest.............................................................................. ... 11.472,972.83 3,954.903.92 912,610.24 2.381.596.11 INCOME Sales of metals.................................................................................................................................................. Sales of manufactured products and merchandise................................................................................. Royalties, tolls, rentals, etc................................................................................. ....................................... .. Metals in process and on hand at end of period--st cost, exclusive of expenses during suspension of operations................................. ......................................................................................................... Balance carried down ...................................................... ............................................................................. Income from Investment* in sundry companies....................................................................................... Balance, net loea: Apportioned to minority interests................................................................... 859,389.61 Carried to foregoing Balance Sheet.................................... .......................... 8,656,547.64 122,592,996.97 4,719,880.03 3,279,823.48 28,989,746.25 1,472.972^3 851,056,429.66 86,195.66 8,715,867.66 88,722,083.20 CONSOLIDATED BALANCE SHEET AS OP SEPTEMBER 30, 1921 ASSETS Fixed: Mines and mining claims, coat mines, timber lands, water right* and lands for reduction works and refineries, ate....................................... 8119,447,390.70 Buildings and machinery st mine*, reduction works, refineries, sawmills, foundries, waterworks, railroads, manufacturing plants, etc.75,769,220.81 Investments in sundry companies................................................................... 18,439,207.68 'Current: Supplies on hand, advance* on ores and expenses prepaid....................... Manufactured products and merchandise held for sale............................. Metals in process and on band--at cost........................... .................... .. Account* receivable and cash........................................................................... 822,613,004.17 2.500.980.30 18,989,746.25 19,007,676.06 8223,656.819.14 8276,767,225.92 LIABILITIES Capita) Stock of Anaconda Copper Mining Company: Authorised--3,000,000 shares of 860 each; Issued, 2,331,250 share*.......................................... Minority interest* in subsidiary companies...................... .............. ........................................................ Ten-Yesr Secured Gold Bonds, due January 1, 1929: Authorised Series A, 6%, 826,000,000; Series B, 7%, 826,000,000--outstanding................. Reserve for depreciation................................................................... ........................................... ................ Current: Accounts and wages payable and taxes and interest accrued .......................................... Surplus: Balance December 31,1920..................... .............. ................................ $84,763,462.44 Net loea for nine months ending Sept. 30, 1921, per Income Account annexed.............................................................................. .......................... 8,656,547.64 49,201,700.00 23,128.253.21 9,288,055.64 76,096,914,80 8276,767,225.92 Po l ic y o f De p r e c ia t io n It is the policy of the Company to provide ample reserves for depreciation of plants and equipment, (approximately 7% annually in the past) and also against depletion of minerals, based upon Governmental requirements. The depreciation reserve as shown in the Balance Sheet amounted on September SO, 1921, to 23,128,253.21. The Company agrees with the New York Stock Exchange: Not to dispose of its stock interest in any constituent, subsidiary, owned or controlled company, or allow any of said constituent, subsidiary, owned or controlled companies to dispose of stock interests in other com panies unless for retirement and cancellation, except under existing authority or on direct authorization of stockholders of the Company holding the said companies. To publish at least once in each year and submit to the stockholders, at least fifteen days in advance of the annual meeting of the Corporation, a statement of its financial condition, an income account covering the previous fiscal year, and a balance sheet showing the assets and liabilities at the end of the year; also annually an income account and balance sheet of all constituent, subsidiary, owned or controlled companies; or a consolidated income account and a consolidated balance sheet. To maintain, in accordance with the rules of the Stock Exchange, a transfer office or agency in the Borough of Manhattan, City of New York, where all listed securities shall be directly transferable, and the principal of all listed securities with interest or dividends thereon shall be payable; also a registry office in the Borough of Manhattan, City of New York, other than its transfer office or agency in said city, where all listed securities shall be registered. Not to make any change in listed securities, of a transfer agency or of a registrar of its stock, or of a Trustee of its bonds or other securities, without the approval of the Committee on btock List, and not to select as a Trustee an Officer or Director of the Company. To notify the Stock Exchange in the event of the issuance of any rights or subscriptions to or allotment, of its securities and afford the holders of listed securities a proper period within which to record their interests ..after authorization, and that a)] rights, subscriptions or allotments shall be transferable, payable and deliver able in the Borough of Manhattan, City of New York. To notify the Stock Exchange of the issuance of additional amounts of listed securities, and make imme diate application for the listing thereof. To publish promptly to holders of bonds and stocks any action in respect to interest on bonds, dividends on shares, or allotment of rights for subscription to*securities, notices thereof to be sent to the Stock Exchange, and to give to the Stock Exchange at least ten days* notice in advance of the closing of the transfer books or extensions, or the taking of a record of holders for any purpose. To notify the Stock Exchange if deposited collateral is changed or removed. To have on hand at all times a sufficient supply of certificates to meet the demands for transfer. The fiscal year ends December 31st in each year. Location of principal and other offices of the Corporation: Anaconda, Montana, and 25 Broadway, New York City. Place and date of annual meeting: Anaconda, Montana, third Wednesday in May, at 10 o'clock A.M. i ) i i i PNYC00009173 IPPJFilftfWIIII t ANACONDA COPPER MINING COMPANY------ EIGHT ' The Officers are: John D. Ryan, Chairman of the Board; C. F. Kelley, President; B. B. Thayer, VicePresident; A. H.Melin, Secretary and Treasurer; R. D. Cole, Assistant Secretary; D. B. Hennessy, Assistant Treasurer; J. T. Roberts, General Auditor. Under a provision of a by-taw of the Company, adopted May 17, 1915, Directors of he Company are divided into three classes, each class being elected for the term of three years. Directors cf the First Class: John D. Ryan, C. F. Kelley, B. B. Thayer, New York City, terms expire in 1922. Directors of the Second class: Geo. H. Church, Andrew J. Miller, A. H. Melin, New York City, terms expire in 1923. Directors of the Third Class: Wm, Rockefeller and Nicholas F. Brady, New York City, terms expire in 1924. There is one vacancy in the Directors of the Third Class. The Transfer Agents are: National City Bank of New York City, and Kidder, Peabody & Co., of Boston, Mass. The Registrars are: Bankers Trust Company of New York City and National Shawmut Bank of Boston, Mass. ANACONDA COPPER MINING COMPANY, By C. F. KELLEY, President. t This Committee recommends that the above-mentioned $11,636,250 Capital Stock be added to the list upon official notice of issuance and payment in full, with authority to add not to exceed $21,781,250 of said Capital Stock on official notice of issuance in exchange for outstanding Common Stock of American Brass Company, or on official notice of issuance and payment in full, all in accordance with the terms of this applica tion, making the total amount authorized to be listed $150,000,000. Adopted by the Governing Committee, January 25,1922. ROBERT GIBSON, Ch a ir ma n . E. V. D. COX, Se c r e t a r y . t *.