American Metal Company
| Private | |
| Industry | nonferrous metals |
| Founded | 1889 |
American Metal Company was an American nonferrous metal trading and production company.
The origin of the American Metal Company (AMCO) begins with Metallgesellschaft AG of Germany one of whose founders, Wilhelm Ralph Merton, tasked one of his cousins, Berthold Hochschild, to supervise its metal-trading business in the United States. Hochschild moved to the US in 1884 and the firm was incorporated in New York in 1887. AMCO started out as an agent for Metallgesellschaft AG of Germany, the Henry R. Merton & Co. (founded by the brother of Wilhelm Ralph Merton) of the United Kingdom, and the Société Le Nickel of France (founded by the Rothschild family). Also in 1887, Jacob Langeloth, an executive of Metallgesellschaft in Germany moved to New York to assist Hochschild. The company experienced rapid growth due to a surge in demand for copper especially in Germany which then consumed 1/3rd of US exports. Under Langeloth, AMCO expanded into production, opening refining plants for lead and copper. Prior to World War I, AMCO made a minority investment in Climax Molybdenum Company, the world's largest producer of molybdenum named after the Climax mine; the investment paid off due to increased demand from the war.
In 1914, Carl M. Loeb, previously a branch manager, became president of AMCO after Longeloth suddenly died. Loeb vertically integrated the company by expanding into the ownership of smelting and refining facilities while securing his supply of raw materials by signing exclusive contracts with large mines to purchase their entire output; and then processing them at AMCO-owned facilities. He also expanded AMCO's activities into Mexico with investments in lead, silver and zinc mining first as an agent for its parent Metallgesellschaft and later as a direct owner during World War I. In 1917, AMCO refined 250 million pounds of copper, 547 million pounds of zinc, and 168 million pounds of lead. Before the United States entered World War I in October 1917, Metallgesellschaft (then led by Richard Merton, the son of Wilhelm Ralph Merton), transferred its 51% ownership in AMCO to several American citizens who were also AMCO managers. Once the US entered the war, the US passed the Trading with the Enemy Act 1914 which required that German-owned business assets be held by the Office of Alien Property Custodian. Despite Merton's efforts to hide Metallgesellschaft's ownership, Loeb reported to the agency that the assets were in reality still owned by their German parent and the stock was then transferred into a trust which was supervised by Henry Morgenthau Sr., Berthold Hochschild, and Joseph F. Guffey.
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