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OUTLIES
I. History of Plant
1. Lead Refinery 2. Vbite Lead
. Zinc Oxide
?. Lead-in-Oil
II. Conditions Affecting Decision to Close Plant
1. Bismuth Froblem 2. Operating Coats
A. Lead Refinery B. By-Products 3 Pigment department 4. Submission of Nev Coats
III. Shut-Dovn Procedure
1. General 2. Lead Refinery 3* Vhite Lead 4. Zinc Oxide 5. Lead-in-Oil
IV. Liquidation of Stocks and Miscellaneous Affairs
1. Lead Refinery 2. Figments and Mixed Metals
A. East Chicago B.- Warehouses . Storeroom
?. Miscellaneous Affairs
V.- Disposition of Personnel
1. Accounting 2. Operating 3. Sales
VI. negotiations ulth Prospective Purchasers of Plant
1. American Zinc, Lead and Smelting 2. Calumet Iron and Suppljr end U. S.Reduction 3. Chromium Mining and Smelting 4. Eagle-Picher 5. Fmployees of International Smelting andRefining 6. Gardiner Metal 7. Goldsmith Brothers Smelting and Refining 8. Metal and Thermit 9* Rational Lead 10. Hlcholson, Porter and List
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VII. Sale of Plant 1. Preliminary Brents 2. Sale to Eagle Ficher
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Introduction
1. Lead Refiner?
She Parkas Process lead refinery of the International Lead Refining Company at East Chicago, Indiana vas built to treat the lead bullion produced by the lead smelter of the International Smelting and Refining Company at Tooele, Utah.
Construction
The plant vas designed and constructed under the direction of Mr. 0. P. Bulst. Ground vas broken April 16, 191S and exactly six months
later the plant vas in operation and refined lead vas being cast. The capacity of the plant aa designed vas 5,000 tons of bullion per month.
Id the paper presented hy Mr. 0. P. Bulst before the American Institute of Mining and Metallurgical Engineers at the Salt Lake City meeting In August, 191a, Mr. Hulst acknovledged the assistance rendered by S. Ruetschi In the preparation of plans, C. V, Wilson, L. Crook and P. E. Stolte in the vorfc of construction, and Herman Vitterborg In the operation of the plant.
Operation.
The lead refinery as constructed vas undoubtedly the most i\y, modern of Its kind at that time. Mr. Hulst and his staff were able to
take advantage of the taovledge of lead refining to that date and consoli date it Into a modern, veil-arranged lead refinery that had heen the model for lead refineries for many years since that time.
Effeot of World War I
The plant vas veil developed Into efficient operation vhen Vorld VOr I began in August, 1914. The greatly accelerated demand for lead and the higher prices for common and antlmonlal lead permitted the International lead! refinery to refine bullion from Mexico, Canada and various points in the United States, to Its fullest capacity. In 1917 and 1918 a third softening furnace vas constructed and the desilverizing '.kettles vers Increased In size from 60 tons to 155 tons. Tvo additional ' 155-'ton kettle settings vere also constructed. The original three resi due furnaces vere consolidated Into one large residue furnace.
The acute shortage of antimony during the var and the genius of G. J?. Hulst permitted the treatment of large tonnages of antimony ore Imported from HexiOo for the production of large quantities of antlmonlal lead.
Post Var Problem
The plant passed through a rather critical period during the impost var period because of the lov metal prices and the consequent
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' fV4*linlng production of lead bullion at Tooele, Utah and the construeof lead refineries in Mexico to treat the Mexican bullion that
iteraarlj had been treated at East Chicago.
1 he early 1920'a when tonnages of Tooele bullion vere tudy was made of the possible use and treatment of
* . Through the initiative of the East Chicago staff Of battery plates vere treated and considerable income
erefrom. In the depression of the 1950's battery plates lead materials vere bought in large quantities in order noome that would justify operation of the plant.
The improvement in eelective flotation methods for separa tion of zinc from lead released tremendous tonnages of high zinc lead of* that formerly had heen economically unattractive because of high iinc penalties. These developments increased the tonnage of concen trates that could he treated at Tooele. The capacity of the East Chicago refinery vas exceeded in 1926 and 1927, and in 1928 and 1929 substantial additions vere made in the equipment in order to increase the capacity of the plant up to 10,000 tons of bullion per month.
1930 Depression
In the late 1950's the tonnages of bullion available from Tooele vere not encouraging. They kept declining, higher labor costs vere also experienced, culminated by the beginning of World War II vith its freezing the price of lead at 6.50f per pound and its elements of increased cost, labor inefficiency and extreme shortages of labor. The extreme shortages of labor vere in part compensated for by the em ployment of vomen in all of the plant operations for the first time in the history of the plant. They proved to he adequate to maintain pro duction hut vere obviously Inefficient as compared to a normal male working force.
Bismuth Recovery
In 1955* the lead refinery substantially changed its mode of operation because of the treatment of the Anaconda Roaster Residue at Tooele and the separate production of a high bismuth bullion vhlch vas desilverized by the Parkes Process. The anodes containing lead and bismuth were delivered to the white lead plant for the recovery of bismuth from all of Anaconda's operation. More vill be aald about this development in the history of the white lead plant.
Personnel
In addition to the personnel who built and started tbe opera tion of the plant, mention should be made that In the summer of 1918
. M. W. Krejci was transferred from the Montana operations to East .^TfiC&icsgo as Refinery Superintendent. Mr. F. P. Clark, former Chief
* at East Chicago was wade General Foreman of the Lead Refinery ^rjsad contributed a great deal in the operation of this department. Re
/ ni promoted in 1925 to Lead Refinery Superintendent and remained in ^ [that capacity until his death In March, 19t2.
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2.__ White Lead
BEsiesd Marketing Problem
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In 1919, it was recognised that outlets for refined lead
f* ` would he distinctly limited in the post war period. In recognition
' 'V of these conditions, it was decided to look into the possibilities of ' .'/r producing some lead product that would form an outlet for a substantial lb * part of the pig lead produced at East Chicago.
Under the direction of Mr. William Wraith aa President of
the International Lead Refining Company, it was decided to investigate 1 the possibilities of the Sperry Process for the production of electro lytic white lead.
Sperry Process Investigation
With the help and guidance of Hr. Elmer A. Sperry end under the direct supervision of Hr. M. W. Erejei a small experimental Sperry
cell for the production of electrolytic white lead was started in a special building at East Chicago and known as Building C013.
Sperry Process Development
In this small experimental plant the Sperry Process was
developed into a commercial process and plans were immediately made for a 10-ton electrolytic white lead plant to be constructed at East Chicago.
White Lead Plant Construction
The appropriation request for construction of the 10-ton white lead plant was approved July 3, 1919. The plant was placed In operation January 30 1920.
Personnel Changes
On February 1, 1920 Mr. 0. P. Hulst and Mr. Milo W. Krejci resigned from the International Lead Refining Company to engage In other activities. Mr. 0, M. Kuchs was appointed Manager and G. B. Johnson was appointed Acting Superintendent of the East Chicago plant which Included the lead refinery and the white lead plant which had
just been placed In operation.
Of the men who started in the original development of ths
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Sparry cell at East Chicago, mention should be made of Mr, T. E. Cook who was invaluable In the solution of the early problems of making the process practical and relatively simple for workmen to understand.
Mr. E. A. Mayhev started as a filter operator in the experi mental plant. Later, by successive stages he became a foreman of the white lead plant and remained in that capacity until made General
Foreman of the white lead plant which wao his position when operations were discontinued in July, 1946.
Mr. R. G. Bowman contributed a great deal to the development of the Sperry Process in its early commercial operation. He was trans ferred from Tooele, Utah to East Chicago in May, 1920. He later became
Assistant Superintendent of the East Chicago plant and continued active on the management staff at Fast Chicago until July, ig46 at which time he occupied the position of General Superintendent.
Mention should be made of the many years which Hr. W. J. Knox
spent as Vhite Lead Plant Superintendent. Among the research men
succeeding Mr; Ehox as research department heads were T. H. Donahue,
S. V. Stockdale and W
Shropshire,
Mention should also be made of Mr. Perry S, Toney as Mechani
cal Superintendent. Ons of the;important developments which he con tributed was the anode washing machine which is gradually being ex tended in its use to all types of electrolytic washing operations.
Development of the Bismuth Plant and the recovery of all of Anaconda's bismuth through the white lead plant was in part started by
Mr. T. H. Donahue when he was in; the research department. It was ex
panded into a practical operation when Mr. Stockdale was head of the research department.
A great deal of exploratory work in the use of the Sperry Process for the refining of impure metals and the production of a super ior white lead vas actively studied in the 1930 period. Many possible
processes were also explored in an experimental way, some of which will no doubt become commercially attractive In future years.
3. Zinc Oxide
In March, 1921 Mr. G. S. Brooks arrived at East Chicago for the purpose of building and operating an experimental sine oxide furnace. It was proposed to produce zinc oxide from electrolytic tine received from the Montana operations of the Anaconda Copper Mining
Company. The experiments using oil as a fuel proved successful and a commercial unit consisting of Block Ho. 1 - French Furnace operation at East Chicago - was built. Ground was broken in July, 1922 and the unit began operating oh January 1, 1923. Ho. 2 French Block was built and began operations in October, 1924, In addition to Mr. Brooks, Mr. F. 0. Case, Mr. L. G. Duncan, Joe Mickel and Len Clark were import
ant in the development of the zinc oxide business at East Chicago.
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In 1925. to further expand the zinc oxide business, it vas *,4eided to build a plant similar to Block No. 1 at Bast Chicago at
IjcroB, Ohio with the thought that this vould supply sine oxide to the flarge rubber companies operating in the city. Promotion of the use of . froneh Process zinc oxide in rubber manufacture vas one of the importr-'aati developments accomplished by the zinc oxide department.
Vr Hr. F. 0. Case had a great deal to do vith the construction ij'nt the Akron plant and its later operation and handled the sale of the ^production. Mr. T. R. Janes, J. F. Clark and Joe Kllmek were important `iS*n in the Akron organization. $; v'Ji Mr. F. H. Eurless entered the employ of the company at Akron /. In November, 1922 as a clerk in the office. He later assisted Mr. -<' Case in sales work at that point and vas transferred to East Chicago
.la 1929. He later became District Sales Manager and in 1936, Assistant ^ Sales Manager, assuming the position of Sale* Manager in 1942.
In 1925, Mr. G. S. Brooks vas promoted to the position of President of the Gelsche Spolka Corporation of Foland. When he left . Mr. F. 0. Case succeeded him as Manager of the zinc oxide department at East Chicago and Akron. At that time Mr. L. G. Duncan vho had been vith Mr. Brooks in the initial venture vas placed in charge of the Akron plant. Zinc oxide sales reached a volume of 30.0C0 tons annually.
pj;; Development of Zinc Oxide Production from Scrap Zinc
It had been recognized In 1935 and 1936 that some other source of zinc might become necessary because of the uncertain supply from the vest. There vas also an increasing amount of scrap becoming avail able as die cast scrap in various forms vhlch every one recognized vould ultimately become a problem to reclaim. Therefore, in the years betveen 1935 and 1937 efforts vere made to find some process of using scrap zinc for the production of zinc oxide. In this development, B. S. Olsen and George Anderson had a considerable part and vere later granted patents for the fundamental characteristics of the muffle furnaces vbicb have been so successfully used at East Chicago.
In 1936, Mr. Case vas promoted to Manager of the Midvest District of the International Smelting and Refining Company and vith that change Mr. Johnson vas made Plant Manager for the East Chicago and the Akron plants. Mr. Duncan vas made Sales Manager.
In 1937, the power shortage in Montana created a serious situation in the zinc oxide business at Akroi and Fact Chicago. There vas not enough electrolytic zinc available for zinc oxide production.
It was decided to discontinue the operations of the Akron, Ohio plant and it vas closed dovn in September, 1937- A few f tha Akron employeesvere transferred to East Chicago but most of the -former Akron employees remained in Akron, Ohio.
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The operations of the muffle furnaces became an Increasingly P..Important part of the zinc oxide operations at East Chicago, and at ,
time of the closing of the plant In August, 1946 the muffle furnaces had been developed to the point where all forms of zinc oxide produced ||f,:at East Chicago such as U.S.P. quality, ceramic, paint and rubber *> resides were all produced on the muffle furnaces from scrap zinc,
4, Lead-In-Oil Substitution of other pigments for white lead In the ceramic sad paint industries caused a shrinkage of sales which became quite serious. In 1930 a survey of the lesd-ln-oil market was made and In 1931 the production and sale of this product waa begun. That area of the country east of the Mississippi River and north of the Ohio Elver was actively solicited. Over 2,000 outlets were established end the tonnage of dry white lead sold as lead-in-oil amounted to over 30?> of total dry lead production. Beginning with World War II shortages of materials and re strictions on their use as Imposed by VFB and CPA reduced the volume of lead-ln-oil available for sale. However, production and sales were maintained on a reduced basis throughout the war and until the closing of the East Chicago plant.
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II. CONDITIONS AFFFCTIKG DECISION TO CLOSE PLAKT
January, 1946
1. Bismuth Problem
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The Tooele staff studied the Trail, B. C. opera tions in connection with the bismuth problem vhlch had been precipitated by the purchase of the Darwin Hina by the International Smelting and Refining
Company in August, 1945. This mine vaa supposed to have been a low bismuth mine but shortly after it was purchased it was discovered that it was very high in bismuth. This bismuth began to bo an ag
gravation to the bismuth problems already existent
in connection with the Tooele smelting operations.
'- February 22 to ' March 20', 1946
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The Trail, B.C, Betts Process plant studies were
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completed and reporte then submitted and it was
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euggested that a study be made of the possibility 3
of installing a Bette Process plant at Fast Chicago 4
and also at Tooele. Approximately two weeks were
required at East Chicago to prepare and check the
eetimeted construction and operation costs at Fast 5
Chicego end at Tooele. In addition, the Farkes Pro
cess costs at Eaat Chicago were analysed by the Fast 6
Chicago staff and estimated costs submitted March 19th
and 20 th.
The decision was made that the amount of money in volved to construct a Betts Process plant at either East Chicago or Tooele was not warranted when all
factors were considered.
2. Operating, Costs
A, lead Refinery
March 16, 1946
Mr. Milne prepared a memorandum to Mr. Johnson rela tive to the statement of Feet Helena and Tooele
bullion treatment ccats for the years 1938 to 194*5 with a supplementary tabulation showing the total metal and inventory gains over and above what we
had to return to Fast Helena and Tooele.
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The study of lead refining costs was continued at East Chicego. The bismuth problem and smelting costs at Tooele were studied as well aa the effect of East Chicago refining coots cn Fast Helena bullion.
In the study of the many factoro affecting refining
costs at East Chicago, it was concluded that these
refining costs were high principally because of over 9
head costs. There obviously was a hang-over of
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high costa from war conditions, the inefficiency of 11
plant operations during war conditions and the use
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April 30 to Hay 3, 1946
Kay 1, 1946
May 10, 1946
Kay 15, 1946
Hay 17, 1946
Hay 18, 1946 ' Hay 18, 1946 - -4*1
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of a large proportion of women employees vho vare less efficient than men.
East Chicago also retained a number of elderly em ployees during the war period because of the general shortage of all classes of help. Some of these men had reached a condition where their ability to func tion vas decidedly limited due to their age,
The Hew York office, in their dlscuesion of Omaha
treatment of by-products, recognised the possibility that Omaha might vant to treat, all of the Tooele bullion and the East Helena bullion as veil. Dis
cussions developed a number of possibilities. At about this time, the Hew York office requested that nsv estimates be prepared at East Chicago to see
vb&t the refining costs might be reduced to if the plants wore threatened vlth a shutdown of their lead refining operations.
Mr. La1st received a letter from Mr. Valker of the
American Smelting and Pefining Company on the sub ject of International bullion, offering original
terms for Ihe treatment of this bullion. This was the information which Mr. Laist telephoned Mr. Bowman on Hay 1st.
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A statement of the bismuth costs, showing costs at
East Chicago, also charges made to Anaconda Copper Mining Company and International Smelting and Hefining Company for the ten years 1936 to 1945 In
clusive, was submitted by Mr. Milne and discussed vlth Mr. Laist.
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The Accounting Department prepared a statement of bullion refining costs, 1936 to 1945 inclusive, which vas used in anticipation of a complete dis cussion with Mr. laist.
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A statement was prepared shoving the repairs to the
lead refinina department, how they had increased
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from a low of $35,COO in 1933 to fll6,0C0 in 1945.
Mr. Bowman prepared a memorandum to Mr. Johnson on the subject of Deductions in Overhead and Fixed Expense At E^st Chicago.
16
The bismuth comparison between Fast Chicago treatmerit and Omaha terms was cade.
17
Mr. Bowman made a note on Ventilation and Health Hazard Expenses that might be necessary at East Chicago to bring the Farkes Process plant up to a safe operating condition. Mr. Laist wanted this
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figure as 8 credit to the installation coat of the Betts' Process.
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JO, 1946
The East Chicago staff prepared revised estimates
of the estimated complete Farkes Process refining
costa. May 15* 1946 editions, vbieh indicated a
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refining cost per ton of $10.22. There were also
submitted with these; estimates on the same date com
plete Farkes Process costs at East Chicago without
custom materials which brought the bullion refining
cost to $.11.71 per ton, then the estimated cost of
refining bullion at Fast Chicago only without customs*
or by-product treatment at $13.20 per ton. Copies
of all of this information in files at Eist Chicago.
tj 20, 1946 r 't3* ' fey 21, 1946
A statement was prepared showing the cost of treating
all materials, bullions and customs, based upon the 1945 total costs, adjusted to give credit for in- 20 come from other sources which indicated as estima ted 1946 cost of $11.57 per ten.
Discussed with Mr. Laist a bullion treatment com parison which was dated May 20, 1946 shoving the bullion treatment comparison betveen Fast Chicago and Omaha, which Indicated a pain of $101,760,CO,
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Mr. Laist objected to the penalty for bismuth, and these figures were later revised with the help of Mr. Case, Into a new arrangement which was indica ted earlier in this memorandum.
22
T *y 22, 1946
Mr. Miller prepared a statement of East Helena and
Tooele bullion refining costs April, 1946 and year to date.
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- toy 24, 1946
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B, By-Froducta
The bullion metal recovery statement for 1940 to 1945 inclusive was prepared shoving that the metal recov
eries over and above, vas assumed and the cost sheets could safely he used for future metal recoveries. 24 This statement later became the basis of the state ments which were givon to Mr, Case and Mr. Laist in Hew lork on May 24th.
April 11, 1946 V-.
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A further study led Mr. Laist to the conclusion that the major-portion of East Chicago refining costs vas due to the treatment of the by-products. In average bullion, the by-products represent approximately 105&
of the; veigbt of the bullion treated. A large part of the by-products cost was incurred in the residue and blast furnace treatment. It vas "therefore deemed
advisable to compare the cost of treating these by- 25 products at Omaha or Tooele instead of East Chicago.
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April 11, 1946 April 25, 1346
April 26, 1946 Kay 20, 1946
Mr. Bowman telephoned Mr. Johnson.at Mr. Laist's
office In New York, the figures showing the savings to be realised by treataont of the by-products st Tooele as compared with gale, of: .by-products to
American Smelting and Refining Company at Omaha. Tbese^figures Indicated that Fast Chicago was spend ing $8,10 per ton for the treatment of Its by-pro ducts. This memorandum later became the basis of a decision to discontinue the treatment of by-products at Fast Chicago, and ship them either to Omaha or Too ele.
Instructions were Issued to complete treatment of all by-products at East Chicago as soon as possible to reduce the organisation to a staff that could be Jus tified on the basis of a limited operation of the dssilverizstion kettles, softening end molding of re fined lead And the retort and cupel operations.
It was also arranged to have the Omaha plant of tbs
American Smelting and Refining Company offer terms for treatment of the lead refinery by-products from East Chicago because of the possible freight saving toy shipment to Omaha as compared to shipment to Tooele. The original negotiations with Omaha vers conducted between the East Chicago staff and the Omaha staff. Later the Raw York office handled tbs negotiations. It was agreed that seme of the by
products which had accumulated at East Chicago might be sold to Omaha, such as the baghouse dust which would be removed from the .baghouse and flues when the final residue furnace and blast furnacs run was completed.
Mr, Stockdale prepared certain figures showing a
comparison of the treatment of East Chicago by-
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products revised according to Mr. Young's letter
to Mr. Lalst of April 20, 1046. The calculations
indicated that there would be a saving of approxima
tely $100,000 per year by treating the by-products
at Tooele, after allowing for the freight charges for
the by-products to Tooele and the freight on the
bullion produced by the treatment of the by-products.
It was therefore decided to discontinue the treatment
of the by-products at Fast Chicago and begin storing
them for shipment to Tooele.
A statement was prepared under the heading "Treatment of By-Products" basis 39*600 tons of bullion refined 27 .based on treatment at East Chicago, and the shipment of by-products to Omaha and Tooele. This comparison
of treatment costs was prepared by using the depart-
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Nay 25, 1946 Msy 23, 1946 Ms; 24, 1946
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mental cost at Fast Chicago vlthout reference to
the 'Cost per Unit of Impurity Factors'. These
calculations afcov that Fast Chicago Could treat
the by-products for $3.33 pec ton as compared to a cost of $4.45 per ton by shipment ta Tooele and Omaha.
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Mr. Johnson prepared some bismuth calculations of the income to Anaconda if bismuth vara refined by
the vay of Omaha and by the process at Fast Chicago. The figures indicated that $175,500 vaa the income through Omaha refining the bismuth as compared to $234,300 through Fast Chicago treatment.
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Discussed vlth Hr. Case rearrangement of the figures
vhich were brought to Eev York to show the differ
ence in metal payments for lead, silver and gold.
29
B. L. Sockett and S. V. Stockdale submitted to Kr.
Laist the estimated construction and operation coat for a proposed farkes Process plant at Tooele.
30
Gave Mr. Case and Hr. Laist a statement of the analysis of the different natal payments for lead,
silver and gold, bismuth and antimony in favor of refining at East Chicago.
January 1, 1946
3. Pigment Department
Mr. Bovmar prepared a shutdovn expense for the refin ery, in anticipation that the refinery might be shut dovn. Information in connection with overhead costs
at East Chicago vas studied in case the refinery vat shut dovn and the pigment plant operated.
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May 3 to May 15 1946
It had been evident in our earlier' studies of the lead refinery operations at Fast Chicago that the pigment plant operations had an important bearing on the lead refining costa and the lead refining ex penses had an important part in determining the cost of operations of the pigment plant. In the analysis
of overhead costs that vere made early in 1946, it had been concluded that if the lead refinery vere shut dovn the pigment plant vould be faced vlth a rather precarious existence because of the relatively large plant and the equipment that vould have to he main tained in part, at least, for use by the pigment plant. During the var years, the pigment plant had been handi capped by.OPA restrictions on prices, the high labor coats and other veil knovn elements such as WFB and CPA restrictions, on the use of zlno and lead for manu facturing pigments. It vas concluded that if the lead
refining operations vere discontinued at East Chicago, it vould be inadvisable to operate the pigment plants
op any satisfactory basis, even though they could justify their operation for a period of several years
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>j 18, 1946 |:jfy 15, 1946
In the immediate future and later wight prove to be attractive enterprise* as Individual businesses.
One cf the Important elements In a study of this kind
was the value of the white lead plant to the Anaeenda
Copper Mining Company for the recovery and refining of
bismuth from Anaconda Roaster Residue, This fact had
been recognised since 1935 as one of the most Import
ant reasons Tor continuation of the East Chicago oper
ations. In the negotiations for treatment of Tooele
bullion at Omaha, this question became a major problsa ,;?
becaueo of the extremely low coet of producing refined ^
bismuth at East Chicago as compared to any methods
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that were used and could be used at Omaha.
Mr. Knox prepared a memorandum to Mr. Johnson showing the comparative profit and loss per month when tbs
rinc oxide plant was operated to produce 924 tons and
1,440 tons of muffle oxide respectively, per month. 32 These studies vera made In anticipation of a discussion of the pigment plant operation at East Chicago In Hew York In Kay, 1546.
Mr. Knox prepared some figures for Mr. Johnson on pig ment prices needed to maintain the same margins for
metal prices Increased by 1.65s! rer pound, which was the anticipated Increase for lead and sine If OFA were discontinued as of June 30, 1946.
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Hr. Knox prepared a memorandum to Mr. Johnson out lining the white lead plant operating estimate and the time required to treat high and medium bismuth
bullion available at East Chicago and Tooele as of this date. This information was in. connection with the proposed shutdown of the white lead plant.
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4. Submission of Hew Costs
A new set of estimated costs for refining bullion at East Chicago was presented to the Hew York office. Those figures were not considered Important because in the other discussions of the problems relating to the operation of the Fast Chicago plant. It had been fairly well decided that the use of the plant at East Chicago for Aneconda's purposes had been fulfilled. In addi tion, the difficulties at Tooele In handling the higher bismuth from the Darwin Mire were costing them <30,000 per year and in discussions with the Omaha representativesarrangements ,had been developed whereby Tooele could operate without due concern about the bismuth
content of Tooele bullion shipped to Omaha. About this time it had practically been decided to discontinue
operations at Fast Chicago.
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III. SBUT-DOtfH FHOCE0OTE
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> Hi 15, 1946 Hj 22, 19^6
June 1, ig46
June 20, 1946
1, General
Discussions, studies and events at this stage vers approaching a decision which seemed to crystallize as definitely unfavorable for the Bast Chicago plant.
Decision made at Rev York to close the Fast Chicago plant.
Instructions were issued to begin shutting dovn all operations at Bast Chicago.
At the sane time. Instructions were issued to Tooele to store any bullion they had on hand for later ship ment to Omaha.
It vss understood that the main operations of desil verizing and treatment of the silver-hearing by products should be completed In the silver room as soon as possible.
By-products from the material on hand should be treated In the residue furnace and subsequently in the blast furnace; the residue bullion to be shipped to Omaha.
The balance of the by-products left in any depart ment vere then to he shipped either to Tooele, Omaha or disposed of elsevhere to the best advantage in order to cease operations In the lead refinery as soon as possible.
Instructions were Issued to advise the trade that the International Smelting and Refining Company vas to discontinue the operation of the pigment plant at East Chicago and that they vere going out of the pigment business as soon as the stocks of pigments at Eapt Chicago and in varehouses had been sold.
The salesmen vere Instructed to advise the customers that the International Smelting and Refining Company would do the best It could toward taking care of their requirements but that very little production would be available to take care of them beyond July.
Letters were sent to the mired metal, white lead and zinc bride customers notifying them that International was shutting down the Past Chicago plant and perman ently going out of the business of producing these products.
Similar letters sent to the lead-in-oll customers
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April 12, 19^6 June 17, 1946 June 18, 1946 June 19, 1946 June 24, 1946 July 4, 1946 July 6, 1946 July 11, 1946 July 12, 1946
July 23, 1946 August 2, 1946 August 9, 1946 August 21, 1946
Kay 51, 1946
June 2, 1946
2. Lead Refiner'}
Last copper bearing lead vas produced.
Desilverizing kettles shut down.
Chlorination machine shut down. last of the low bismuth common lead vas molded.
last of the high bismuth common lead was molded.
Retorts were shut down.
Residue furnace shut down.
Caulking lead vas last molded.
The last anodes were molded for the white lead.
Cupels were shut down. The last production of F-3 alloy for Anaconda Wire and Cable was molded.
Blast furnace run vas ended.
The last antlmonial lead vas molded.
The Bismuth Plant vas shut down and all bismuth produced.
The baghouse furnace was shut down which placed all departments cn a shut-down basis within the lead refining unit.
J.__V-'hlte Lead
Request was made of Vashington to permit the use of the remainder of the lead quota, available for the production of white lead to the International Smelting and Refining Company, tpfce used up ae soon as possible in order to spoed up the shutting down of the plant.
Authority was received from Washington to use the entire quota of lead as soon as possible.
Operations at the white lead plant were increased to capacity.
July 22, 1946 July 25, 1946 July 27, 1946 Jum3, 1946
July 5, 1946 July 8, 1946 July 15, 1946 August 5, 1946
July 23, 1946
The Louden Dryer vas shut down at J>:30 P.M.
The Raymond Mill vas shut dovn.
Last lot produced - Lot 6-223.
4, 7Inc Oxldo
It vas decided to operate all the Muffle Furnaces at the plant ae soon as possible In order to com plete treatment of the scrap on hand in the most economical manner and In the shortest period of time. Four Muffle Furnaces vere operated during most of June and until early July.
#1 Muffle Furnace shut dovn.
#2 Muffle Furnace shut dovn.
The Packer vas shut dovn.
#3 and #4 Muffle Furnaces vere shut dovn after treating the residue metal and producing Frlme Vestern Tine from such treatment. The residue metal vas sold to the Inland Metal Company, Fast Chicago.
It should be noted that in the late operations on and #2 Muffle Furnaces both furnaces vere pro
ducing O.S.P. oxide and high grade zinc.
The last operation on the American Block was torch 15, 1945-
It should also be noted that the last operation of the French Furnace vas completed on torch 31, 1945.
5. l.ead-ln-011
. The Lead-in-Oil Plant vas shut dovn.
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1. lead Peflnerv
*ly 27. 1946
The last common lead was shipped.
f Agust 22, 1946 AH antlEonisl lead vas shipped out.
;8pt. 23, 1946
The last by-products were shipped to Omaha.
Ifhpt. 30, 1946
The last of the by-products vers shipped to Tooele.
f Spt. 30, 1946
The filial clean-up of all metal in the plant was made to the tf.S.S. Company.
k, East Chicago
2. Figments and Mixed Metals 1346
lead-in-011 Mixed Metals White Lead Dry Zinc Oxide
B. Warehouses
Juno 1
104,310 976,169 262,250 1,126,350
uis_i
53,555 1,000,078 1,246,300 1,646,800
Aug. l
245,259 986,982 394,050 573,950
Sept. 252,350
Oct. 1
Lead-in-011 White Lead Dry *# Zinc Oxide
82,0,33
215,550 369,250
45,950
109,350 269,300
11,461
247,550 446,300
Mixed Metals not carried In outlying warehouses.
51,600
Dates warehouse stocks wore liquidated:
Akron Boston
Erocklyn
Indianapolis Jeannette
Lon Angeles
Louisville Minneapolis Hewark Philadelphia
Fcrtland S-an Francisco Seattle
7/24/46 8/19/46 8/29/46
7/22/46 7/6/46
9/16/46 7/30/46 7/10/46 9/3/46 8/23/46 3/28/46 9/16/46 8-/12/46
13^5-VC-UUKe
3. St ora Boom
Curing July, a complete inventory vas taken of the storerooa aupply accounts for purpose of giving our other plants a chance to select any surplus iteras that are not on the market, also for the purpose of establishing a value for sale vith the property.
This listing included over, four thousand items with a total of approximately $140,000.00. This vas not limited to n book lnven tory but listed all material and supplies that had been charged to operations and found in the storeroom vith charge-out tickets. All of List 2, containing over nine hundred bolt end screv items were counted and totaled ?2,lS5.92. All of List 10, containing new equip ment, amount $3,471.54, was not on our books but included in the sale of the property. The plant was combed closely for such items.
All undelivered material on open purchase orders vas can celled. Rome of the material vas in process of fabrication and could not be cancelled. The total loss on such items will aggregate not over $4,000.00. All miscellaneous material and supplies, including all equipment that has been received since the shut-down, have been purchased by The Fagle Picber Company. All such items, up to September 1st, were included in Sheet 9 in ths general sale. All items, after September 1st, will be adjusted in our accounting pro cedure of debits end credits during the final accounting.
4, Miscellaneous Affairs
The accounts receivable, on September 30th, vns $23,518.96 and we expect to collect all vith no bad debt loss. There is a re serve of over $45,000.00 for bad debt losses.
All circular mail addressed to employees of the International Smelting and Refining Company, as veil as to the Company, is being re turned to the sender, stamped 'Please remove Individual and company name from your mailing list. Plant is closed". The volume of mall vas 1,180 items the first week and is still of considerable quantity. All first-class mail is forwarded.
Cancellations of contracts, agreements, permits and sub scriptions have been in daily progress. These include tbe utility, water, telephone, laundry, vindov^cleaning, oxygen and acetylene, switching and weighing. State of Indiana on Gross Income Tax, with holding tax, personal and real estate tax.
State of Indiana contribution balance for unemployment com pensation final accounting -will take place when all claims are paid. This balance, around $93,000.00 will be reduced by unemployment claims which should not exceed $5f000.00. The refund will not include any money allocated to the ''`Pool Fund''. These figures are available in the Hew York Office.
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Treasury Eocsrtront parralt for scsclutly denatured alcohol vas full of red tape- but/was-'finally disposed of and bond cancelled.
Industrie! Board of Indiana notice and arrangement for a continuation of carrying our own risk.without Insurance until all liability claims are paid.
Tlicrs are several compensation cases pending that bavo been in progress of final settlement. Our reserve for this risk Is downto ?14,d0,l.5^' but should be -enough to take care of unsettled claIns. Much time is consumed in these conferences.and it- will be weeks before ail cases are cleared. Two hernia operations are pending.
1. AccountInn
July 15, 19-Vo
Karlen Eanclc, comptometer operator, ana Dorothy Awe, ledger clerk, were laid off. Both young girls, with less than r year's service.
Avgust 1, 1946
Adam Miller, metallurgical accountant, employed in 19?5, and Omar Hager, accountant for the white lead
plant, employed in 1936, accepted positions with the American Smelting and Feflning Company at Vtolting, Indiana, at no loss In salary
Villlasj Kona, junior . traffic clerk, accepted a posi tion in the traffic Department of the Superheater Company at a loos In salary. Re was recommended to the Fagle Fiehar Company and' they, have hired him as
senior traffic clerk at nor9 salary then we paid.
Vaneta Leraley, stenographer and storeroom clerk,
employed In' 1927 left toi eccMpt a'.:Fdsition with Carnegie Illinois Steel Company, South Chicago.
Alice Davis, secretary to F. F. Stolte, left to
accept a position with an insurance company at an increase in salary.
Florence Frzespolewskl, payroll machine operator,
left to accept a similar position with the Sinclair Defining Company, Fast Chicago
August 15, 1946
Helen Vojvoda, bookkeeping machine operator, left to take ft position doing similar work with the Sin clair Defining Company at no reduction in pay.
Doy F. Fallowes, secondary metals accountant, em ployed in 1227, left to accept a position in the purchasing department of the General American Transportation Corporation, Fast Chicago.
September 1, 19^6 J.
Asher, paymaster, employed In 1918, left
service to go into business. He has opened an em
ployment office in Hammond.
Helen Lukernsn, FBX operator, employed in 1935, accepted similar position with the Sinclair Defin
ing Company at a better salary.
F. V. Melon, Invoice clerk, employed in 19?9, left' to accept position with the Calumet Iron end Supply Company, Fast Chicago.
Lenore Shaw, typist,.employed in 19^, was-released. She had several offers.
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Sept. 15, 1946
H. G. J'lnd, credit man, formerly metallurgical bookkeeper, employed In 1914, left to accept position es credit ran for a large furniture ho- *e 'in Chicago.
Li-Urn Fladling, typist, employed In 1933, left to accept similar position ulth the p . D. inrmsn Company, fast Chicago. The left th lanrsn Company and returned October 7th to help out until released for the Fagle richer Company.
Dess Flatis, typist, employed in 1944, left tc accept any one of several offers.
I. F. Jones, accountant for Lead Defining Depart ment, employed since 19?3 left to accept a posi tion ulth a small concern In Gary. Be declined an offer by the Fqgle Picber Company.
Etncle -Anoskeyi consignment clerk, employed Kay, 13?3 left for an extended vacation. Be has an. attractive offer from the Metal and Thermit Cor poration.
-A, ^'lllle.ms, senior traffic clerk, finished his work at the plant find was transferred to Rev York pension roll.
V. F. Fines, storekeeper, employed in 3918, vent on Fagle Plcher pay roll and has deferred his pen sion arrangement.
A; ililne, chief clerk, employed 3916, vho uill leave Rovember 1st to accept a position with the Haiser-Frarer Company in Fast Chicago. He de clined an offer fcy the Fagle Plcher Company.
It. J. Dedelow, accountant for the Fine Oxide De partment, employed in 33?3, will leave about Rovember 15th for another position. He declined an offer by the Ffigie Flcher Company.
F. F. Stolte, assistant secretary, will finish liquidating the plant.
Uj 15, 1946 Jime 1, 1946
June 19, 1346
2. Operating
A eonfer-oce vas held at tbe Rev York office relative to tbe problem of liquidation of the fast Chicago organization.
It vas recognized that many of the hourly employ ees vould have no difficulty in obtaining other jobs because of the continued acute lobor shortages In the area.
The question of severance allovance for the older employees vas discussed and special studies vere made from a number of angles. A fev of the older employees vlth many years' service vere considered for pensions.
Steps vere taken by Mr. R. J. lavsen to notify tbe employees that every effort vould be made to help there locate positions or jobs. The personnel de partment at Fast Chicago vpuld contact all employers In the area to ascertain their needs for help of all kinds and vork vith there to help locate our Inter national employees in satisfactory positions or jobs..
It should be mentioned that a speclsl arrangement vas iraeje vith the Federated Metals Elvtsionof the American Smelting and Refining Company at Vhitlrg, Inclines for a meeting at: vhlch the understanding vss reached that the personnel departments of the two plants vould verk together to try to locate as many, of International employees as possible vith their organization.
The accounting department employees vere assisted In their efforts in locating positions through the efforts of Mr. F. E. Etolte and Mr. 1. A. Milne as veil fta through the activities of the personnel department.
The employees were advised that tvo veeks' notice vould b<S given there bpfore Ifchey vould be released from the International roll. They vere requested to remain on the job until the work necessary to place the plant on a shut-dovn basis could be com pleted.
Rotice posted stating that the zinc oxide depart ment furnaces vould cease operating July 7, 1946. After that date some men vould be employed to get the plant on a shut-dovn basis, maintain it'on that basis and to clean up.
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Ju e* 19, 15*6 Jue* 25, 19*6
rested in
whits lead -i-pertr-cRt stating-
il.r't the call rcc would cesea operating July 6, 19*6
Sotlr- fisted stating that after July 15, 1?*5 the lend refinery and bismuth plants would be cn s dnitdcvn bn a la, few pen vculd be employed to maintain a shut-down basis and to clean up.
The notice also stated that the blast furnace run would be completed about July 15tb.
ffany e-SRbers of the staff spent a great deal of time caking
cWoJn` at'a* Vc*tsu
salaried
a"a>>inn-ddJa
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hourly, to,
hf*oev. *rlpaCJn*t-hd-e* msb,uJflgioJg,cveanstvteijo,vnsiis5atttisoufatfhccjetiforev_yrm-__yp_pivl_oo_jyCsjeiB^sti#ol_j,n_sbVVo. VthtiA
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ber of Ihes were offered transfer* to ether plants of the Anaconda Com
pany but with one or 'tvs exceptions these vere rot accepted.
A mirber of special problems v#a. encountered, particularly In the salaried group whose age vt: between 50 and Co. This group v*s
difficult to hnndl< s because they v*rs adrlsad in irony cases that younger nen vera desired, Fpeclel cooperation with the Hev Y-vk office was help-
ful for several of these -".rployecs. Vith their help they were sent to different sections of the country for personal Interviews with proapoctlve employers.
Severance* allowances and vacation pay, if due, were given all ec ployces who vere antitied to there privileges. The payment of seve.r~ance allowances was handled on sn Individual basts. Vhils nary
questions were asked concerning the basis on which severnnee ray was allowed, no definite information vast open the erployeen. Apprdxlsately $6J,C>00 was spent to give employees severance allowances.
The employee's to bo pensioned, few In number, were pensioned either when their services became no longer necessary or when the plant was purchased on October 1, 19*6 by tfc Tgle richer Corrpsny.
In retrospect it Is gratlfylnr to realise that practically all of the former International reciting and Tiefining C-'i-peny employees have located satisfactory position#. In many cases such more recuneratlvs
positions than they formerly held.
On October 1, 19ll6 all employees of tbs International Fireltlrg and Refining Company, last Chicago, were notified that they were release; from the International Smelting and Refining Cc-rrony'a payroll with the excep.tio.n .of a f.ew emp.loyees -In th** accounttli>ng dcpar trn-t w-ho vere reedet to close cut the accounts'In the nest Chicago office and the chon1st* who vere needed In the general laboratory to complete the necessary #s#*3
required for settlesent purposes on the nets] of fast Chicago.
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On October 1st arrangement* were also mde for son* of the forner International Smelting snrl Defining Company employees to be
ployed by the Eagle Picber Company. Special arrangements were aide to hare this group of salaried employees receive group Insurance privileges for one year beginning Uovejnber 1, 1946.
Several of the employees who had otherwise been considered for pension by the International Smclti-Pg and Defining Company were
fronted e leave of absence In order to be employed by the Fagle Picher oaipsny for an indefinite period, perhaps three to five years vith the understanding that at the termination of this employment by the Fagle llcher Company, they would be considered for the same privileges that otherwise night have been extended to there by the International Seltlng and Eeflnlng Company.
3. Sales
Personnel Felessed
7/15/J6
8/15/46 8/15/46
K. F. Howard
G. S. Banach C. V. Brownell F. G. Fngler
-Ann Hetlkosh Iorstta Sags L. G. Street
Fsgt Chicago do do do do do do
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G. L. KcF.ory V. J. Murray
Personnel Transferred
!7ev York do
8/31/46 8/31/46 9/J0/46 9/30/46
L. S. Donaldson l'oris HcKeon F. H. Burless Helen Ghr
Transferred to Advertising Department Transferred to Office at
25 Broadway Transferred from Fast Chicago to Chicago Transferred fron Fast Chicago
to Chicago
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1. American "Inc, Lead end Smelting
July 5, 1946
American Tine, Leed end Smelting Company represen
tatives, Hr. Fide and Hr. Ammon, visited the plant to ascertain the possible value for purchase by the American Fine, Lead and Smelting Company.
2. Calumet Iron & Supply and U. 5. Reduction
August 19, 1946
IT. P. Reduction Company representatives visited the plant, fir. F. A. Bergman, President, and Dr. M. L. Kaufman, Vice Fresident, vere escorted through the plant by Mr. J. F. Clark and Mr. 0. F. Johnson
August 29, 1946
A group of representatives of the Calumet Iron and Supply Company and the U. S. Seduction Company in spected the plant for the purpose of ascertaining its value ulth the possibility of its purchase.
Hr. Harold Veinstein, Secretary-Treasurer, Calumet Iron and Supply Company, vas spokesman, Mr, Meyer Veinstein, President, Calumet Iron and Supply Com
pany, Hr. Edvard Eergmcn, President of the U. S. reduction Company and Dr. H. L. Kaufman, Vice Fresi dent, U. S. Reduction Company, Mr. A. A. Svart?,
Allied Finishing and Specialties Company, Chicago, Illinois.
Sept. 6, 1946
Copy of plant insurance map and general vrite-up of the different departments of the plant vere sent to Hr:. Harold Veinstein by: Mr. E. 0. Case.
5. Chromium Mining and Smelting
August 10, 1946
As soon as these gentlemen sav the plant, they decided it vas too large a plant for their purposes.
4. Eagle-Flcher
July 27, 1946
The Fagle-Ficher representatives visited the plant. They vere Hr. R, L; Rallcvs, Assistant to the Presi dent, Mr, B. M, O'Hsrra, Metallurgical Engineer, Mr. J. R. Crenshav, Superintendent of Flants, Pig ment Division, Hr. G. B, Hicks, Chief Fnglneer and Mr. Albert Flsea, Superintendent of Cincinnati Vhite Lead Plant. Mr. O'Harra remained at the plant until
August 1st.
August 1, 1946
Fogle richer Company representative, fir. O'Harra, left to return to Cincinnati vith his report of the Inspection of the Fast Chicago operations and costs
as veil as the plant's appraisal.
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Ao|Bgt: 27, 1346
The Fogle richer Company representative*, Mr. Paul
F.Wilten, Manager of the 7iftc Oxide PopertEent at Hillsboro, Illinois, Mr. F. Clesrrv*n, Plant Monager cf tbs Galena, Kansas plant, Mr. H. F. Lambert, Manager of the Argo, Illinois plant, visited the plant in order to become acquainted vith the plant equipment and processes used in Fast Chicago.
5. Hmoloyoes of International Eras ltlng & Ref In ing
Juas l1!, 1946
A croup of employees, the spokesman elected vaa Mr. 5. w. Ctockdr.le, advised that they would de finitely bo interested in the purchase of the plant - that they represented capital who bed sufficient money to purchase and operate the plant.
The employees present at this resting vers: 5. W. ftockdale, V. V. fhrepshire, S~. H. Sachs, J. J. McKenna, B. J. Lawson and J. F. Clark.
July 8, 1946
Iho above group of employees advised that their
backers ware: the Calumet'
$ndjuSupply Company
and the U. S Peductioni Corrpafll: Pf Hast Chicago.
6. Gardiner Metal
June 21, 1946 9
representatives of the Gardiner Metal Company, Chicago, Illinois ipqiiired about the possibility of purehaalngi the pibnt. Bepresentatives were Mr. Bert Gardiner end Mr. Hurray. They requested
that permission be granted Mr. Bart of Hart-Vhetston Company, industrial real estate firm, to inspect the plant for the ftotpbse of advising the Gardiner
Motel Compnny as to its value for their purpose.
Jims 26, 1946
Mr, Bert Gardiner telephoned that the anticipated
visit of Hr. Bart of iHsrt-V'fcetston would have to be postponed until the week beginning July Sth.
August 28, 1946
Gardiner Metal Company, Hr. Bert Gardiner, advised that he would not be able to get Hr. Hart to visit the plant until later.
Sept. 10, 1946
Gardiner Metal Company representative. Hr. Bert Gardiner, again advised he wanted to com* cut with Mr. Hart Gf'Hart-Vb4tbton to inspect the plant. He also inquired if tpe price had been set at vhieh
the plant would be sold.
7. - Goldsmith Brothers Smelting h Refining
July 16, 1946
Goldsmith Brothers Smelting and Befining Company representative, Mr. Kelvin Goldsmith, visited the
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Juns 5, 1946 July 10, 1946 July 13, 1946
August 14, 1946 Sept. 11, 1946 June 28, 1946
Plnt end, hoped that some arrangement might have been made vtth the International Smelting and Refining Company to let him operate the plant of the International Smelting and Refining Company, East Cbicego, before it was decided to close down. In connection with his silver operations at Chicago he would have liked to have had a contract to refine Tooele and East Helena bullion,
5. Metal & Thermit
Metal and Thermit Corporation, Mr. V. P. Lienhardt, indicated possible interest in acquisition of the white lead plant and some arrangement for hiring Its trained personnel.
Metal end Thermit representatives, Mr. Vfibur Midnight, Manager, end Hr. V. S. Lienhardt, Superintendent, spent port of the day with Hr. Knox and Mr. Johnson inspecting the possibilities of Metal and Thermit purchasing the plant with the understanding that the technical staff vould be available for its operation.
Metal end Thermit Corporation representatives visited and inspected the plant, nsirely, Mr. Emlth, Vice President, Hr.Wilbur Midnight, Manager of the East Chicago Hotel and Thermit Flant, Mr. V. S. Lienhardt, Superintendent of their East Chicago Ilant.
They were particularly interested in the possible land acquisition for expansion purposes for their plant and also the technical advantages of the Sperry Pro cess as a means of handling tin-lead-antimony drosses.
Metal and Thermit expressed an interest in land and outlet for some products from this plant in case seme one takes it over.
National Lead
National Lead Company representatives, Mr. Morris P. Kirk and: Mr. Rupert, Assistant to Mr. Carroll. They were very much interested in the muffle furnaces and the rotary furnace for smelting battery plates.
10. Nicholson, Porter and List
Nicholson, Porter and List through Mr. Leo M. Richolsch, President, requested permission to look ever the property with the hope of helping dispose of the plant.
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July 29, 19^6
Prrrcscntr.tivc-s cf Nicholson, Forter end List in-
spsctcd, tJ*.e plant. Iheso represent, tires included Hr. Carl r. V-ilJrimj, Industrial Agent for the
Pennsylvania. Esilrond, Mr. Forter, Hr. List and the cither ncrvhors cf the firm of vhich Hr. Nicholson Is president.
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VII. SAIT OF FIATT *v.#
Jus* 19, Vua* *, 15%a
October 1, 19^6
i r oAlrlsitry r vor;ts
`'ast Ctolco3 r eqo-'atsrj to prcprsre description of
plont
squlysor.t for stilly by prospective pur
chasers.
Apl reiftf.l of pl"nt started by Mr. Boschan of vlltur Jsjrr>n of flea.
___fsle to ?ap.lc-f tebor
Tibti plr.nt VQ9 purchased by tbs Pegla FI char Cbpnny end they taoJs possession on this date.
WCTissiraasw7raHBit
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