The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1889-05-08
A Man direct from London ralL..

A Man Direct from London Talks
A gentleman for many years prominent
ly identified with one of Montana's heaviest
gold-producing mines arrived in the city
direct from London, yesterday, where be
has been sOjOurning for the past six
months During his stay he viewed with
interest the rise and downfall of the copper
market, and is as well posted on the situa-
ton as any man in the country. An INDE-
PENDENT reporter met him at the Cosmf,-
pOlitan hotel and adduced the following in
formation from him:
He says the only copper company of
Montana that is sure OF uninterrupted
operations is the Boston and Montana, of
Butte.
"What is the situation of the copper
market ?" asked the reporter.
'fhe situation" he replied, sis this; of
course you are aware Of the collapse of the
syndicate. The syndicate at the time of
the collapse had 10000 tons of copper in
stock, and on this borrowed 100000 600
the Barings OF London at the rate Of $50
per ton. This of course secured the
bankers, but the SOciete des Metaux and
the Compton des Compte are the heavy
losers They have gone into liquidation.
This 100 900 tons of copper must be sold.
Copper is now held at $50 but within two
weeks It will fall TO $50 since the failure of
the Paris negotiations, at which an effort
American producers"
what is the outlook for the future q''
was then asked.
O'COpper will not 90 to a high price again
until this surplus of 160, 900 tons is disposed
of in some way. That alone is enough TO
supply the worlds consumption for a
whole year, if every mine was to close
down. IL Will take from three TO four
years TO recover from the collapse. Besides
this surplus there is at least l20, 900 tons on
the market and besides there is large
amount in transit from the mines of Chill,
You see, these fellows, Hirsch and Barring.
have the copper supply and they must get
their money back, and by unloading this
supply on The market which they will do
al any figure, Is going to force prices down.
IL was the intention II the American prO.
ducers would curtail their production 20 or
20 per cent TO form another syndicate TO
hold the price up, but since this failed they
don't care as long as they succeed in recOv-
ering their money. IL was thought II the
output could be restricted copper could be
held at eF5. The reason the American
producers wouldn't agree to a combine
was because Matheson, of the Rio TfDto
mines, wanted 10 handle the total prOduc-
tion."
How much copper is on hand in the
United States ?'
"While don't know the exact figures.
can safely say il is about 10000 tons.
Besides this Paris and Liverpool has I20 %
OOO tons on hand, exclusive OF the 100, 900
tons surplus while the annual cOnsump-
ton OF the world is $50 600 tons, where's
the stimulated production caused by the
advance in copper last year caused the pTo-
ductiOn to be during that time over 800 900
tons This stimulated production by rails
ing copper To such a high figure, caused
the resumption of work in old low grade
mines which had been idle for years, and
in consequence of the high figures consul
MFRS used other metals, not being able TO
purchase copper"
"What will be the result Of the failure of
the Paris negotiations ,"
"rhe Rio TintO and all Spanish copper
mines will have to close down for time
There is not a mine there that can produce
copper with the market less than $40 per
ton, because the ores are too low grade"
How Will il effect the American
mines ~
The Boston and Montana company is
secured for one year longer ~ e62 per ton.
They were about the first concern % enter
the combine. The Anaconda and other
companies made three-yesr contracts,
one year. Their time expired,
believe IN January. The Boston * Mon
Barring Bros, of England. and have until
next February before the time expires. OF
course their gursntOrs will lose money,
but they placed too much confidence in the
strength OF the Paris syndicate. AS far as
the othsr companies are concerned they
cannot hope to make any money for at
least three years and it would not surprise
me much IL some of them will close down
That copper will fall below its
present price is inevitable. The
market hangs between l4e and I5c
Der pound. but sales are being made a. low
as 10 and u cents. I believe the price will
be 10 cents. There is no probability Of
the formation Of another Syndicate Tor a
long while, and until the enormous amount
of copper on hand is disposed Of prices
wi ] cODtinus To range very low. ON the
whole the OF look for the camp of Butte IL
better than for the Calumet and HecIa
companies Franklyn Farrell. of the Par
rot company, uses most of his copper. and
be can easily curtail his production. The
Boston and Montana is ali right for an
other year, and the Anaconda company
can make copper cheaper than any other
company, but a years supply on hand
stares them in the face"