American Metal Company
| Company type | Private company (historically) |
|---|---|
| Industry | Nonferrous metals trading and production |
| Founded | 1887 in New York, United States |
| Founder | Berthold Hochschild |
| Fate | Merged with Climax Molybdenum Company in 1957 to form AMAX Inc. |
| Headquarters | New York , United States |
Key people | Berthold Hochschild (founder, chairman), Jacob Langeloth (executive), Carl M. Loeb (president), Harold K. Hochschild (president, chairman), Walter Hochschild (president), Hans Vogelstein (president) |
| Products | Copper, lead, zinc, molybdenum, silver, potash, petroleum |
American Metal Company was a U.S.-based enterprise specializing in the trading and production of nonferrous metals.
History
The origins of American Metal Company (AMCO) trace back to Germany’s Metallgesellschaft AG, where founder Wilhelm Ralph Merton appointed his cousin Berthold Hochschild to manage its metal trading activities in the United States. Hochschild moved to America in 1884, and by 1887, AMCO was officially established in New York. Initially serving as an agent for Metallgesellschaft, along with the UK firm Henry R. Merton & Co. and France’s Société Le Nickel, AMCO expanded quickly, largely driven by strong copper demand from Germany. That same year, executive Jacob Langeloth joined and helped steer AMCO into production by developing lead and copper refining operations.
1910s to 1920s
Prior to the outbreak of World War I, AMCO invested in Climax Molybdenum Company, then the foremost molybdenum producer, capitalizing on wartime material needs. Following Langeloth’s death in 1914, Carl M. Loeb assumed the presidency and pursued vertical integration by acquiring smelting and refining plants and securing raw material supplies through exclusive agreements with major mining operations. Loeb also expanded AMCO’s footprint into Mexico via investments in lead, silver, and zinc mines. By 1917, the company was processing significant volumes of copper, zinc, and lead.
In 1917, due to U.S. wartime legislation under the Trading with the Enemy Act, Metallgesellschaft relinquished its 51% ownership in AMCO to American management. Loeb disclosed the German ownership to authorities; consequently, shares were placed in a trust managed by Henry Morgenthau Sr., Berthold Hochschild, and Joseph F. Guffey. The following year, the Alien Property Custodian auctioned this stake for $5.75 million, purchased by investors including Ludwig Vogelstein, Hochschild, and Loeb.
By 1920, Hochschild had become chairman while Loeb served as president; other prominent executives were Otto Sussman, Henry Bruère, Harold K. Hochschild, Julius Loeb, and Vogelstein. Andrew Mellon later joined the board representing governmental interests. In 1921, Richard Merton unsuccessfully contested the share confiscation amid a bribery scandal involving government officials such as Attorney General Harry Daugherty and Alien Property Custodian Thomas W. Miller.
This period featured major corporate restructuring and strategic leadership that set the foundation for AMCO’s continued expansion in metals production and global trading.
1930s to 1950s
Carl Loeb resigned as AMCO president in 1929 over disputes regarding debt financing for African copper mine acquisitions. The board promptly purchased his 80,000 shares at $85 apiece—a fortuitous decision preceding the Wall Street Crash. In 1930, AMCO secured controlling interests in two prominent African copper mines: Roan Antelope Copper Mine and Rhodesian Selection Trust. Harold K. Hochschild took over as president in 1934, while Otto Sussman succeeded Ludwig Vogelstein as chairman.
During World War II, AMCO experienced increased business activity driven by heightened demand for metals. Under Harold Hochschild’s leadership, the company diversified into petroleum, potash, and silver sectors. Harold became chairman of the board in 1947; his brother Walter Hochschild succeeded him as president in 1950.
Merger
In 1957, Hans Vogelstein assumed the role of president and oversaw the consolidation of American Metal Company with Climax Molybdenum Company, resulting in the establishment of AMAX Inc. Following this merger, Harold Hochschild stepped down from his position as director. Vogelstein resigned in 1959, with Franklin Coolbaugh taking over his responsibilities. In 1993, AMAX combined with Cyprus Mines Corporation to create Cyprus Amax Minerals Company, which became a prominent global producer of molybdenum, lithium, copper, and coal. Later, in 1999, Phelps Dodge Corporation acquired Cyprus Amax, and subsequently, Freeport-McMoRan purchased Phelps Dodge in 2007, emerging as the largest copper producer worldwide.