Freeport Broader

Every year the U. S. steel industry consumes some 750,000 tons of manganese ore. Some of it comes from Africa where the great manganese mines are on the seaboard, easy to exploit. Some of it makes the long passage from India. A great deal comes from the Soviet mines in Georgia, Russia, which William Averell Harriman tried unsuccessfully to handle. Only 8% comes from U. S. mines.

Near Santiago, Cuba, are 10,000 acres of manganese ore. By the Treaty of 1902 no duty can be imposed on manganese imported from Cuba. Hence, properly worked, these deposits could compete without difficulty with U. S. manganese mines. During the past year a corps of engineers has been studying these Cuban deposits, reporting back to the U. S. companywhich sent it. Last week that U. S. company acted and announced it had bought control of Cuban-American Manganese Corp., allowing the minority interest to remain in the shrewd hands of David Marvin Goodrich, chairman of B. F. Goodrich Co. A big mill will be built at once, shipments to the U. S. started. Surprising, however, was revelation of the U. S. firm’s identity. It was Freeport Texas Co., second biggest producer of sulphur.

Back of Freeport Texas move can be seen the force of the new management which last year wrested control from Eric Pierson Swenson, onetime National City chairman. Leader of the new group is Freeport’s chairman, Odie R. Seagraves, self-made Texan, organizer of United Gas Corp.’s super gas system. Ably carrying out his policies is Eugene Levering Norton. 50, Freeport president. Mr. Norton was born in Baltimore, went to Cornell, then started his own investment firm. His best boast: he has never had a boss except for a board of directors. He helped Frank Andrew Munsey form Baltimore’s Munsey Trust Co. which later consolidated with Baltimore Trust Co. of which Mr. Norton became president. He is quiet, likes salmon fishing in Maine and plays bad golf.

Although manganese and sulphur are not entirely foreign (manganese sulphate is an esteemed fertilizer) the deal was not concluded because of any relationship between the two products but to add to Freeport Texas’ income from natural resources. Also, Freeport Texas has worked out a new process in treating manganese and will sell it at $24 a ton to compete against Soviet dumping. To pacify U. S. producers who see Cuban manganese coming in without the $11.20 duty other manganese must pay, Freeport Texas promises cooperation, generosity with its new process.