It's All About Connections

The success of Phelps Dodge Corporation in the 1920s was secured by the success of a particular individual from two previous generations of Phelps Dodge business owners and presidents.   Cleveland Hoadley Dodge was son of William Earl Dodge Jr. who was one of two partners that controlled Phelps Dodge Mining Corporation, and his grandfather William Earl Dodge Sr. was one of the co-founders of the corporation.  Cleveland Dodge's role as president allowed him to continue growing the company by leaps and bounds as did his father and grandfather.   Cleveland Hoadley Dodge is known for several other things other than his family business.  He is also known for his role as a founder of organizations such as; the Y.M.C.A. and the Cleveland Hoadley Dodge Foundation, which was a World War I relief foundation.  He also happened to be an active politician from New York, and was one of president Woodrow Wilson's advisers.  Cleveland Dodge and president Woodrow Wilson had become friends at Princeton University in 1879.  This gave Phelps Dodge Mining Corporation significant political influence.  They had the kind of influence that let them do things such as, appropriate 6,400 acres of public land in New Mexico and Arizona without being prosecuted. The companies tie to the presidency was one of many factors that allowed Phelps Dodge to increase it's profits any way it saw fit. 

Sources

https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/csi-studies/studies/vol51no4/intelligence-in-another-era.html

http://www.chdodgefoundation.org/history.shtml

http://en.wikipedia.org/wiki/Cleveland_Hoadley_Dodge#Gallery

Phelps Dodge made more and more money every year in the 1920's.

"The consolidated income account of the Phelps Dodge Corporation shows gross income of $35,838,480 in 1924, against $29,735,620 in 1923. After all expenses and reserves for depreciation, but before depiction, the company reported $2,091,275 added to the balance sheet."

When one begins to read about the increase in gross income from year to year, the first thing you think about is success. Actually, Phelps Dodge was blessed with the increase of price due to the Industrial Revolution's need for copper wiring. Because copper is conductive, and because American households were beginning to moderate the use of electricity in homes, Phelps Dodge saw the need to increase the prices of their majestic copper. Prices were especially on the rise after the Bisbee Deportation in 1917. This was due to the fact that the company was forced to pay American workers a higher wage due to the fact that they were not illegal aliens from Mexico. 


Source: http://argo.library.okstate.edu/login?url=http://search.proquest.com.argo.library.okstate.edu/docview/100248199?accountid=4117