Western liberal. (Lordsburg, N.M.) 1887-1919, 1889-02-15
THE GREAT COPPER SYNDICATE.
Assurances That It is All Right-The New
Metal Bank In London.

RlehIY sbtieu up the copper people In
New York.
The French syndicate, in effect, contract
ed to take the supply of copper in the
United States for three years at an aver
age price Of thirteen ceuts pound. The
syndicate was organized eight months ago,
and some OF the biggest bankers in Lon
don, Paris and Berlin and few in New
York city are said to be concerned in the
success OF the venture. 1t will be seen
that the contracts between the mining
companies and the syndicate have yet over
two years to run. The production of cop
per last year was approximately $3.50
tons. All this the syndicate has been com
PEELED % take. 1t represents largely in
creased production, which it is declared
resulted from the formation of the synd-
cate. Although copper, at the time the
syndicate was formed, was selling on an
average basis Of sixteen cents a pound the
mines contracted to sell their copper to the
syndicate for thirteen cents pound. Ac-
cording to the statement of the mining
companies this is fair profit on copper,
and this conclusion is responsible to a
great extent for the increased product
which the syndicate has had to care for.
The Importance of the refusal OF the syn
dicate 10 buy any more copper is thus
clearly seen. II was said that the refusal
of the syndicate to buy any more copper
was nothing else than an admission that
the venture had failed. Copper stocks at
home and abroad declined rapidly after
the announcement, but have since recov-
cred, The establishment of a metal bank
in London by the syndicate has been va
riously commented upon during the week
1t is not yet fully organized, and people in
the copper trade do not seem clearly to un-
derstand the prospective functions of the
bank.
A Sun reporter Yesterday talked with
some Of the people IN the copper market
ABOUT the disturbance caused by the al
legged refusal Of the syndicate to buy cop
per, and also as to the necessity for the
organization Of such bank as is pro-
posed.
1t was the general opinion that the cop
per syndicate bad a big load to carry, but
the majority opinion was that it had
enough money to pull through, and that
the organization Of the bank was for the
purpose of securing additional financial
aud if necessary. Mr.. Leonard Lewissohn,
of Lewissohn Bros, Mr w. L. Russell
Mr. James Stanton, Mr.. Charles Raht and
Mr.. II. E. Jacob, the latter two OF the Cal
umet & Hecla mine, all agreed that the
Indications were that the syndicate had
sufficient funds at its disposal and would
carry outfits contracts with all producers
1t was even said that the organization OF
the bank was evidence that the syndicate
would renew its contracts with the com
pnnies, though doubtless on the basis Of a
reduced production and reduced contract
price. All the copper men spoken to said
that the syndicate had stimulated produc-
tion until it was far in excess of the pres
ent consumpiive demand. They admitted
hat there was some danger to the culmln.
alton of the, syndcate's plan and profit
from this fact; but thsy counted good
deal on the organization Of the bank to
obviate this difficulty until the new con-
tracts could be made with the stipulahons S
for reduced production at lower prices to
the syndicate.
1t was said that the bank will have a
capital of $4,000, 900 and fifteen directors
representing the mining companies and
the bankers interested in the syndicate.
An advisory board will be established, it is
said, in New Yock, and efforts to concili-
ate manufacturers will be made. 1t was
stated that the syndicate had refused to
credit some Of the manufacturers who had
been accustomed to buying on accommo-
dation before the syndicate was formed.
\ .Tbesyndicate people, or those who spoke
for them, said that this has creatad an an
tagonism which should be avoided. All
said that the syndicate would not attempt
to squeeze anybody and it is difficult to see
how they could as long as the consump-
ton is much below the production.
nSome of the people with whom the syn
dicate has contracts at thirteen cents 6
round spoke of that as a pretty good
price, and they had no doubt that if con
tracts were renewed with them the syndl
cate would insist on lower figures. Other
said that smash ia the syndicate woulC
not surprise them at all. The big pro
ductlon of copper was the menace, thel
said, and a good deal of apprehension ex
lists in certain circles. Yet for all that
some of the copper people tell of the in
creased consumption which is being de
velcped almost daily. They quote the con
ption of 27,0OO0O0 pounds in 1870 an,
ooo e it with the 125.000, 900 pound
now necessary for consumers in the Unite'
States.
1.-The syndicate is in worse shaps to-day
than it was six months ago" said one q
its representatives. And Mr.. Stanton sal
that at iirst he thought that the syndicat