New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-04
GOBBLING UP COPPER MINES
TILE FRENCH SYNDICATE REACHING OUT.

THE AMERICAN OUTPUT QUICKLY FOLLOWS TIE
SPANISH INTO THAT oPES MAw
The great French cop. or trust row attracts
considerable attention. The news from Faris
that tie gobbling Of the product of tie Spanish
mines by the syndicate had been followed by its
securing the output of the American mines. is the
latest phase in the evolution OF this monopoly.
The news was corroboraied here by S Mendcl,
the broker who has represented the syndicate
during the entire period Of the present copper
BOOM as well rs by the general appearance ef Tie
market and the statements of consumers.
The LASTS OF tie arrangements made by the
French syndicate with the great producing mines
of the world is not in the nature of corner. The
plan is 20 reduce the production. to maintain
prices by the relation of output to consUml ton.
let large percentage OF the output has been con
tIactod lOr outright, 10 10 delivered to the syn
dicate. The combined outrut OF the Rio Unto,
1hatss and Mason Barry, OF Europe. and the
Calumet and Ilecla, Quincy and Anaconda, of
the United States, is about 10000 tons Of COPPER
year, over 81 per cent OF the total production
I'll the world Al agreement between these mines
to curtai their production would, therefore. con
trol tic supply and this is what the French syn
dictate has succeeded in doing.
The Anaconda Was the first to 90 into the com,
bination. The Rio Tin followed and the Tharsis
and Mason & Barry CompaEcs came into camp
last Tuesday. The Calumet and Ilccla. with its
reduced production attempted first 70 sell its COP
per to American consumers under conditional"
contracts, that is, contracts which would be void
in OF accident in the mine. such as fire.
This the consumers wcro unwilling TO enter INTO,
ard the Calumet and IIecla went into the trust.
FIGURES SHOWING PRESENT Production.
The present production of the Calumet and
IIecla is at the rate of 5000, 900 pounds year
against last years rate of $4,000, 900 pounds
The total production OF the United States this
year Will therefore show not much, if any, gain
on that of last year The consumption of the
United States is about 150.000,00O pounds leav-
ing, under normal conditions about 30, 600, 600
pounds for export. This year. during January
alone. the exports amounted TO 10 000,0 900 pounds
The stock on hand here at the beginning of the
year was less than 25. 600, 600 pounds.
AT the present IA c Of exports said Mr.. Men
del yesterday. it will not be long before American
the hands of the French syndicate. When tina
times arrives, the rates which will govern the
market will depend upon the good-nature OF the
now, The prices in the American market will be
independent of those in the English and French
markets, because in the latter the competition
of other producers will be more felt. American
consumers may, therefore, make up their minds
to pay the highest price for copper in the world
THE FRENCH PRESS WORKED Ur.
The development of the present situation has
not been followed by the American people with
the same interest, apparently. as it has been by
France itself, and it is there that large popor-
ton of the piess is clamorng for vengeance on
the capitalists concerned in the movement
Yet, inasmuch as the direct consumers. that is,
the manufacturers, are not usually Spectators
but cover with purchases of bar copper as they
sell the manufactured goods. the howl OF the
French press sounds much like groan from
wounded hears" Some time ago combination
put down the prico of copper, To crowd out the
small producers, and there was no complaint
The arguments in favor of reduction of the
output much 10 the advantage of the miners
1t is certain that if copper reaches and maintains
price of 20 cents pound or $50 ton. the cop
persmithng industry will be thereby stimulated.
OverprGduction would therefore be liable to ensuc.
1t may seem as though the great mines were
injuring themselves by reducing their output,
but figures will easily correct the error Assunk
ing that the production by the mines mentioned
would be equal to the full capacity, the effect
might be expected TO be drop of the price again
TO GA "a ton, or 10 cents per pound, which IT. was
before the boom. The gross receipts would there
fore be about 81, 400, 600, or about So, O00O
the cost of production would be approximately so
per ton, or Z 10 cents per pound, leaving net
profit of II 4 90, 900, or $4,000 600.
On the other hand, assuming that the output
had been curtailcd by one-half, or 10000 tons,
and that thereby the price of $50 per ton or 20
cents per pound had been maintained, the gross
receipts would be the same rs before, Ia 100000
or S52, 600 900; the expense. allowing for de-
creased output, an increased rate of production
of E4O per ton or ten cents per pound. would then
leave a net profit of 100000, or 100000.
twice the profit in the former case. No one need
therefore worry, that the companies will lose
money by their transaction.