Show 1 CHANGE IN COPPER SELLING AGENCY IS EXPLAINED Chairman American S. S R. R Co Board Replies to F Former Former For For- ormer or- or mer Directors Director's Charges NEW NEV YORK Dee Dec 31 The The 31 The ns from the sale o of for for or which it acted as i selling agent d da da l a profit of or more than one million dollars annually for a a period o of eight years to the i American Smelting and Refining compan Effective January 1 next this thi copper will wail willbe wil be marketed through h a new agency operated op op- orated by tel th the firm final of Guggenheim Bro Bruis Brol C Cleaving leaving the Smelting company free fre fro to rs-ii rs H at will wil the tIle copper production which it I may mav receive from its is own mines and from r oth sources sourcEs Edgar L. L Newhouse chairman o of he board of the American Smelting and R R.- R. fining company says that conflict of ot us Is t agency business with that of its own copper copper copper cop cop- per production has been the source o of se severe sr- sr sr- sr vere losses to the tIle company and that the management decided to quit the agency field as a result The entire matter mater has been gone into at entre some somo length by Mr Newhouse in an affidavit aff- aff affi arfi- davit which he be filed tied as partial response to the tho application o of Karl Eilers Elers a a former di- di rector for a writ of mandamus in the tho the New NewYork rew court Yo York k supreme The American Smelting and Refining company has since lf 1108 1108 08 not only sold its is own copper but that o of other for which it acts as selling agent the tho s1 sll- sll Ins ing agency agreement e having rl f been e made g I says s Mr e as p part of t the arrangements arrange arrange- rr meats ments to smelt and refine the ores from these mines mine In addition to its is smelting I profit the company receives a a separate and additional commission for the sale ot of cop cop- per The be selling arrangement provides that Inthe in inthe inthe I the sale of copper au all al such transactions should be prorated against the total amount available at the time o of sale including the company's own copper I Net proceeds of or commissions paid the I I company for its Is services as selling agent J for other companies amounted in the perIod period pe pe- pe- pe nod from January 1 3 1 1913 1013 to September 1 1 1920 to more than and the the conduct conduct conduct con con- duct of such agency proved to be during normal times a source of large profit to tc the company Tile The existence of the agency how however In Increased in in- creased the necessity and volume volun of oi for forward 11 w ward warl sales eales of or the company's own opper copper and particularly in the normal period fol following following fol- fol lowing lowing the outbreak of war it is true that some losses were suffered from this source soure These losses were due flue almost entirely to the existence o of the selling seiling agency From Prom January anuar 1 1 1912 1012 to October 31 n 1920 the net proceeds from the selling agency amounted to and from this should be deducted losses incurred in incurred irs irs- during the same period of or 4 1 leaving an apparent net profit prot of or 54 1585 on the operation On Stay ray 1 I 1920 the company had on hand hanl for its Is own account 26 Son tons tona ol 01 1 refined copper the figure of ton lon mentioned by Mr 11 Eilers Eler being untrue according at ac ac- ac cording to Mr Newhouse e. e Lade Lad o of demand an e- e dented production of or copper was the rca son sot for the accumulation of metal accord Ins fag to Mr Newhouse The fact that th company could not sell sel its Is own copper Independently independently in In- dependently of that sold for agency account account ac ae count was also a contributing cause causE For the past two years the has been trying to solve the selling agency question Queston working out a a modification which would d leave the company with wih its commission commission commis commis- sion slon profits and at the same same time leave leae if ii i free fre to sell sel Its is own copper independently None being found It was waa decided las month says Bs B's Mr Newhouse to terminals the selling agency and hereafter hereter in ordes to prevent further losses from this source the company will wi sell Eel merely is its own copper cop cop pe per unrestricted by obligations to sell th thi copper of any other compan company compa |