The operative control of the American Zinc, Lead & Smelting Co. has been acquired by the Butte & Superior Mining Co., dominated by Hayden, Stone & Co., of New York and Boston. A large interest in the American Zinc, Lead & Smelting Co. was held by L. Vogelstein & Co., formerly the representative of the German Metallgesellschaft in the United States. The American Zinc, Lead & Smelting Co. controls the Wisconsin Zinc Co.; the American Zinc Co., of Illinois; the American Zinc Co., of Tennessee; and the American Zinc Ore Separating Co.
The New Jersey Zinc Co., an American concern, controls the New Jersey field, and, through its subsidiary, the Empire Zinc Co., owns and operates a number of mines in the western states and Mexico, and the Mineral Point Zinc Co., of Wisconsin, one of the three largest producers in that region, and four zinc smelters.
The Anaconda company operates a number of zinc-producing mines in the Butte district and has erected electrolytic plants for the treatment of its own concentrates, one of 25-tons’ capacity as an experimental plant at Anaconda and a plant of 200-tons’ daily capacity at Great Falls, Montana. It has treated some of the production of other companies, notably of the Butte & Superior Mining Co. It is an American company under American control but has many European stockholders.
Germany.
—The ambition of German commercial interests to control the metal markets and resources of the world was more nearly realized in the case of zinc than of any other metal.
The German Zinc Syndicate (Zinkhüttenverband) was organized in 1909, by three powerful interests: (1) The Merton group, comprising the Metallgesellschaft, the Metallbank and Metallurgische Gesellschaft, all of Frankfurt, and the Merton companies of London; (2) Beer, Sondheimer & Co., which through the Tellus stock company controlled over a dozen metal and chemical concerns; and (3) Aron Hirsch & Sohn, at Halberstadt; and was immediately joined by all the important Silesian and Rhenish-Westphalian zinc concerns. The organizers were made exclusive selling agencies for the syndicate and purchases from any foreign sources were made in unison. The syndicate immediately made agreements with Austrian and Belgian producers including the Vieille Montagne, which has mines, works and agencies in many parts of the world. It was also joined by a Dutch concern, Zincs de la Campine. The syndicate embraced altogether 18 firms and regulated both their output and prices. By the end of 1912 this German syndicate controlled directly one-half of the world’s output of zinc and three-fourths of the European production.
Two Belgian and some French works formed another syndicate. A third was formed by six English works, and the competition of United States firms drove all three into the International Zinc Syndicate, which endured up to April, 1914. The International regulated the output of its members but did not fix exact prices. Through the American Metal Co., and affiliated companies, the German syndicate was rapidly becoming a factor of importance in the control of American, Mexican, and Australian zinc production at its source. The German syndicate maintained its dominancy and was rapidly extending and strengthening it throughout the world through banks, holding companies, affiliations with syndicates and cartels, interlocking directorates, and joint shareholdings.
As a result of the war, the Australian zinc concentrates are permanently diverted from German reduction works, and all German control is eliminated. The activities of the Alien Property Custodian have tended to eliminate German interests in the United States. The re-establishment of the nation of Poland may take from Germany all the Silesian deposits and reduction plants, leaving only those of the Rhenish-Westphalian, Harz and Erzgebirge regions, with only one-third the former domestic production of ore. Poland should be twice as important as Germany in the zinc industry, unless Germany should be able to import ores and concentrates on a large scale.
Australia.
—At the outbreak of the World War the Australian zinc industry was in the grip of the great German zinc syndicate, described in more detail above under “Germany.” This controlled the world’s spelter market, determined output and prices and manipulated the market in the interests of Germany. This was possible through long-term contracts for zinc concentrates, in which form nearly the whole zinc product was exported for reduction in Belgium and Germany. Only 10 per cent. of the concentrates was smelted at Port Pirie or in England.