San Manuel

WHEN Magma Copper Company in 1952 set about finding $100,000,000 to finance the project of developing and equipping the property of its lusty progeny, the San Manuel Copper Corporation, A. J. McNab, president and guiding genius for both companies (and incidentally a mining engineer by profession), determined that he would avoid the mistake frequently made in such circumstances, of underestimating the cost, and thereby running short of funds before the job was completed. The fear that this might happen was one of the reasons why insurance companies, one potent source of "big" money, were reluctant to finance the enterprise. How, they asked themselves, would Magma, a relatively small company, get additional money in such a contingency? Insurance officials' thumbs were turned down. Conditions Imposed by R.F.C. The upshot was the negotiation by Mr. McNab for San Manuel of a contract with the Reconstruction Finance Corporation, dated July 10, 1952, whereby needed monies in amount up to $94,000,000 would be advanced as a loan, bearing 5 per cent interest. Arrangements were made for the separate financing of the new $10,000,000 town, needed for the project, through the Del E. Webb Construction Company of Phoenix, Arizona, and M.O.W. Homes, Incorporated, of Los Angeles. Thus the $94,000,000 drawing account was believed ample to provide for building the railroad, the mine plant, the concentrator, and the smelter, as well as for the underground development of the mine needed to start production. As a matter of fact, only