Show Metals Price Fixing Denounced I Guggenheim Is s to Plan PIari I Ma Makes ke Strong S r ong Plea Pea I for or C Coppe oppe I TRONG objection to the tho governments government's govern govern- STRONG S ments ment's policy In fixing the that price I go of ot metals was raised In the annual report re report report re- re port of ot tho the American n Smelting and Refining company President Dan Daniel el Guggenheim d declares rs r's that the tho economic law la lahas has been nullified While the prices of or the metal products of or tho the company n are rc fixed the cost of oC labor and supplies has been Increasing with a corresponding decrease e In earnIngs earn earn- I In ings s. s I He lie sounds Bounds a a. note of ot alarm b by pointing pointIng point point- Ing In out th t the governments government's policy has hns Jeopardized d the thc Cort of or the gr great enterprise enterprise enter enter- prise e of ot which he Is tho mho bend hend to pay a aall fair all return to Its stockholders although the company Is cn engaged aged in producing what Is absolutely necessary to tho the government government gov SO In carrying on the war avar says s the Industrial and Mining Age Mr Ir Guggenheim speaks for or a n large and antI Important part of or th the tho metal producing Industry and It Is deemed probable that his views will havo have great weight ht In effecting ef- ef ec a revision re of oC prices b by the tho government gov- gov commission having those matters matters matters mat mat- in hand hanel This Is particularly true In respect to the price of copper opper which h was fixed at 23 cents a c. c pound for or a period which I expires next Juno June At that time tImo a revision revisIon revl- revl sion slon upward Is now confidently ex expected expected ex- ex which will give the producers a aIr fair Ir measure of profit and further urther the Interests of the tho government In securing the maximum supply of or tho the metal Mr r. r Guggenheim says 8 ys that the prices of ot metals all aU suffered a serious decline during the year copper year copper from flOm 33 cents c to 23 cents lead from 11 cents to cents silver sliver from rom 10 to is 78 cents and amt zinc from 13 cents to 7 cents He ire Hen n ascribes the tho decline at least In part to governmental action which has Interfered Interfered Inter Inter- feted with the natural cou so of supply and demand Total earnings after deducting deducting de de- de- de ducting g general expenses fixed fixed charges and taxes taxes aggregated an nd and earnings applicable to the common stock were equal 1 to a shar share Net earnings earnings earn earn- ings declined in spite of an nn increase In Increase In- In cren crease e In business amounting to approximately approximately 25 5 per c cent nt In Jn his lils r report port Mr Gus Gus- Guggenheim says says' All 11 of ot our expenses of or operation have hn constantly increased d and are still in In- In creasing Everyone E Is acquainted with the greatly Increased cost of ot fuel All of oC our supplies and anel building materials arc are arcI costing from CO GO to per fler cent more moro than normally But our greatest difficulties I have havo been and md aro are In connection with the tho lack of ot supply and the tho constantly Increasing demand for labor Jabor Therefore our costs of ot smelting anti and refining arc are greater month b by month but our receipts re receipts ro- ro are aro fixed It has always al been tho the poll policy C of or the company compan to make mak long Ions time contracts for tor ore oro and bullion at nt a n fixed betI price for or smelting and neI refining which has permitted permitted per per- continuous running of ot our works and plans could always alwa's bo be ma mado c Intelligently Intelligently Intelli Intelli- gently and without risk for Cor enlargement or making expenditures to reduce costs the charge char In such contracts was fixed company had a certain Interest In the metal recoveries Under economic laws ws If Ie costs of operation Increased It would bo be on account of ot generally increased In Increased In- In creased values and the Interest of or the company compan In the metal recoveries would equal the Increased cost of or smelting and refining The company compan Is now suffering from the lack of economic law and Is operating under the direction of coy gov government commissions commission's whereby the value of or the tho metal producing products of the company compan Is fixed But the tho cost of labor laboranti anti and supplies Is not fixed in fact owIn owing owing ow ow- In ing to the various arlous governmental contracts contracts con con- tracts for shipbuilding and other construction construction con con- of great creat magnitude which have been made on tho the basis of or cost plus a commission the tho contractors have ha no In Interest Interest Interest In- In terest In holding labor costs at a a. point where a a. profit can be bo made and In fact their own o Interests are In favor of oC as high a co cost t as ns can be In an any way Justi justl- fleeT fled D By these two governmental Jo actions first be bo r reducing the value alue of our product product product prod prod- and second by constantly increasing IncreasIng increasing ing our cost this great corporation producing producing pro pro- what Is absolutely necessary to tho the government In carrying on tho the war Is having Its ability to pay nay a fair return to its stockholders seriously jeopardized While It ma may be said ald that the tho previous profits were excessive had Jt It it not been for such profits the company would not have been able to enlarge HH its works and increase its output all of which has been of ot vital necessity to the tho government These enlargements enlargement have havo b been en effected at the cost of fully ull all of oC which has been taken out of ot the earnIngs earnings earnings earn earn- ings of ot the company and antI the enlarged cd capacity will doubtless bo be entirely useless useless useless use use- less after the tho war demand ceases Tho The report refers briefly to tho the Improvement Improvement improvement Im Im- im- im provement In political conditions In Mexico Mexico Mex Olex- I ico ico permitting the resumption of ot operations operations opera opera- b by three of the tho company's compans smelting plants In the republic last year car Th The Mexican affairs of or the company were I commented on at tho limo annual meeting of Wednesday Wednes Wednesday c I tho the company compan In Jersey City on Loch 1 Jr a n director director di director di- di tIa day lJ by Director William rector who presided He stated that the expected to blow In it Us Its lead head com company pan smeller at Chihuahua Jno most t all any day antI and added that a n bl big construction program has hai been determined upon In connection with that plant He Ho said that It is planned to 10 rebuild the thc present lead smelter smeller th there thero re and also to construct a copper smelter smeller The Tho annual report shows that lint earnings of the tho corn company n and antI Its subsidiaries last year car after deducting general expenses fixed charges charges and corporate taxes ag- ag tg compared with 25 23 in 1016 1916 a n. decrease of The Tho sum of was deducted as the tho annual charge for or depreciation and antI depletion de depletion de- de of ore oro reserves cs as ns an appropriation to tho the life lire insurance and pension funds and anti as miscellaneous miscellaneous l- l laneous profit and loss charges liter After these de deductions which Include estimated provision for federal taxes there re remained remained re- re maln d This compares with Ith In 1916 a c decrease of oC 64 I Preferred stock dividends lI aggregated ag aggregated rc- rc gated and quarterly I dividends divi I Bends o of a share and an all extra Red fled RedCross Cross dividend of ot 1 I a share of tho the common common common com com- mon amounted to 1 6 making a total of oC This left a balance bal hal balanco ante ance of ot to be bo carried to profit and loss s account and made the total profit and loss surplus at tho the close of oC the tho year 9 Con Considering such action wise the directors di directors directors di- di rectors made a n. special appropriation of or to care for nela- nela ement and extension work ork which th lh the company company compan plans to do the tho resent present year ear ll By this appropriation the the profit and antI loss 1098 surplus as or January 1 last was reduced to The company compan produced last year car 2496 2196 ounces ounce of gold against I In 1916 1016 silver ounces against platinum and palladium 1597 ounces a against lead tons against copper pounds against spelter 5 pounds against nickel pounds against 1238 tin pounds against In addition addi- addi addition addi adt- tion ten tell comp company produced pr Best select copper pounds against 1 aln t nothing nothing noth noth- ing In 1916 sulphuric acid pounds against nr arsenic pounds n against copper sulphate sul sul- phate pounds a against b byproducts metals pounds against copper find and br brass ss manufactured manufactured manu manu- products pound pounds a against 31 The Tho company COm sold last year pounds of ot test lead and li- li li barge against Rs H S in 1916 loaded cartridges n against sheet lead pipe etc pounds against and mixed metals pounds against The Tho American Smelting Smelling and Refining company compan has an authorized capitalization of oC divided Into shares of ot par 7 per cent cumulative e preferred preferred pre pre- snares shares shares all of or which are arc outstanding nd outstanding ing InS and common shares of par of oC which are outstanding |