The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1888-12-29
INDICATIONS OF A COLLAPSE.


formed and commenced operations
something over year ago, it would
seem from recent advices, absolute
ly controls the worlds supply of
copper and virtually dictates the
price that consumers shall pay for
the metal. The syndicate must
either restrict the production or a
collapse is inevitable. 1.-THE ques-
ton is" says a New York dispatch,
'can the corner be broken? Proba-
bly, not. The syndicate holds the
club over producing companies ;
the companies themselves put the
weapon in its hand. In the first
place, contracts with companies
were made at figures far above the
market prices, and the companies
were glad to go into the deal. They
have been turning out all the cop
per they could to increase their
profits. The normal visible supply
has never been over fifty thousand
tons. In six months the visible
supply has nearly doubled, and the
output of copper is increasing all
the time. The productian must be
decreased. 1t is reported, with every
show of correctness, that the syn
dictate has been trying to make an
arrangement with the Anaconda
Company to close its mines for a
time. 1t is said that the syndicate
offered the Anaconda 100000 to
shut down for six months. James
B. Haggin, on behalf of himself
and other owners, asked 100000.
THE syndicate, it turns out, made
a great mistake in its calculations.
That is the reason it finds itself
with great amount Of copper on
its hands for which there is no sale.
It can easily keep up the prices, but
it cannot prevent copper from &C.
cum ulating. The mistake of the
syndicate was in Understanding
the supply, and over estimating the
demand. The higher prices that
stimulated production very largely
also decreased the demand.
"The contracts between the min
ing companies and the syndicate
are binding on both parties, and
cannot be broken at will. If the
syndicate cannot by any mutual
agreement induce the companies to
stop mining it will threaten them.
BY the first of May it may have
10000 tons Of copper more than
the market requires. If it should
throw this copper on the market.
the price would go to 6 cents a
pound, it is thought The mines
would then have to close. If they
kept on producing at that figure,
the companies would be bankrupted.
There is no way in which the syn
dictate can unload without loss ex-
cept by stopping production.
There is rumor that the syn
dictate proposed to buy the Ana
conda mine and close it up till the
visible supply was reduced. There
is no way of substantiating or dis
proving the rumor. It is very Ger.
tain, however, that the syndicate
could not afford to invest many
millions in mine to be able to
control it.
"There is considerable talk about
the recent fire in the Calumet &
Hecla mine, where 100 men were in
jeopardy and eight lost their lives.
Some people thought the syndicate
interruptions enough to instigate
the firing of the mine to stop the
output.
"The syndicate has moved a big
lot of copper from London to Paris
in order to borrow on it. The
french bankers will not lend on
collateral of this kind, which is not
in the country. The money is not
borrowed on the copper itself, but
on warehouse receipts which show
that the metal is actually stored
and subjected to the order of the
holder Of the receipts"
Copper is an exceedingly sensi-
Eve mstal, and the ductuating pri.