Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1889-02-13
COPPER.
ORIGIN ASD PROGRESS OF TIE
FREN0H SHSDToATE.

A Depressed View Taken by. Engineering
of the Present 0utlook-What the Syn
dictate Has Done and What 1t Has Cost
During the Past Year.
The New York Engineering and Mining
Journal Of last Saturday, q week ago,
takes rather u gloomy view OF the position
Of the copper market, as can be seen in the
following extract:
Since we last vent to press, copper has
been the subject Of rather violent fluctua.
ton In values, and the market has been in
q nervous condition. This state oil affairs
has characterized both the domestic and
reports to the effect that the much dis
cussed London Metal Bank had met with
some serious obstacles in the way OF its
successful constitution, and also that the
newly extended contracts with the great
producing companies had not been signed.
The uneasy feeling was greatly aggravated
by the fact that the representatives OF the
French Syndicate we're altogether abstain
ing from making further purchases, and
prices in consequence OF these uufavorable
influences naturally took q decidedly down.
ward movement.
Had it not been hat at this crisis the
Syndicate again commenced.to buy after an
interval OF three or four days there can be
little doubt that "a serious panic would
have ensned. The result in quotations is
seen from the fact that whilst at the end OF
last week the London quotations for Chilli
bars stood at EFT 5s., within less than
two days afterward the official quotation
for spot had dropped to f73, and futures
were even offered considerably below that
figure-it is reported at f70-without find
ing buyers.
A similar Reorganization Of prices tosk
place in this market, and the fact that the
operations in this country in copper are
now of o very limited nature only pre-
vented q more serious decline 10 quotations.
As it was, Lake copper for March delivery
sold down to Ice, but rallied again on the
improved quotations cabled from London
to 16h, and the few transactions for March
delivery covered the whole OF the business
done in our Metal Exchange. Our present
quotations for Lake copper are now NOM
inally: Spot, II; February IT; March,
16.40; April 16; May 16.
The London quotation Tor Chill bars and
G. NJ. b., which OPP ned on Monday at EFT
5s, close to-day at SIT LIS.
Mail adviees recently to hand from En-
gland are of q very discouraging nature,
and there seems to be no buying at all ex-
cept by ~thsSyndicate, and the demand from
consumers is practically nil. Another sig
nificant fact is that Chilli bars for forward
delivery can readily be purchased by re-
sponsibls parties at from FL to FL los.
below the quotation ruling in the London
Metal Exchange. According to cable ad.
vices just received from Messrs. r. II. Mer.
ton & Co., the statistics of visible supplies
for the last hall OF January nav increased
5000 tons.
THE SYNDICATE.
Very little information of q definite
character has until lately appeared con
corning the origin and operation OF the
French Syndicate, although q great deal
has been surmised with more or less diver
gence from the truth. The Annual Copper
Report Of James Lewis & Son for 1888, is.
sued about the middle of January, con-
tains some definite statements upon the
subject from which ONE particulars are
condensed as the firm named are in o posi-.
ton to know the inside facts:
The French Syndicate was formed in
October, 1887, at first simply for the pur-
pose of forcing up the price of copper in
order to enhance the value OF the large
quantity OF shares OF the Spanish copper
mining companies held in Paris. Their
first operations were encouragingly sue
c~essful, raising the price OF Chilli bars from
f40 to ESQ per ton and enhancing the value
of the shares Of the Spanish comparies
nearly $50 per cent, which deter aimed the
Syndicate to try and maintain values at
the level to which they had raised them.
With this object, they entered into nego-
tiations with the directors and
of the leading copper producing companies
for the purchase of their total output for q
period OF three years, at a fixed price in
some cases, and at a fixed price with a
division OF any excess in Others. Ultimate
", contracts were concluded with the prin-
cipal American companies, the three Span.
ish companies, the two Cape companies and
several of the smaller producers elsewhere.
The price to be paid by the Syndicate ap-
pears from the annual reports of the COM
panies interested and other sources of in
to be:
Is cents per pound, with one-half OF any
excess realized, to the Lake Superior COM
panies, the Parrot company of Montana
and Arizona companies.
IL cents per pound Of copper in the
matte, equal to ID cents per pound OF re-
fined copper, to the Boston and Montana
company for 45, 900 tons OF copper eliv-
cradle over three years.
12 cents per pound OF copper in the
matte to the Anaconda company for their
first six months production, and 10 cents
per pound for the second six months, an
average of 13h cents per pound, or 14h
cents per pound of refined copper.
lis. per unit for precipitate and les. Sd.
for ore, or the equivalent OF f70 per ton
for hest selected copper, to the Rio Tinto,
Tharsis, Mason and Barry, Quebrada,
Cape, NamaQua, and other companies.
The production of some mines is limited,
that OF Others is allowed an annual in
crease, and on Others no limit il placed.
The quantity of copper contracted for
and received by the Syndicate during the
past year We estimate at about 160, 900
tons, out of a total worlds production Of
have taken over from the Societ des
Metaux and purchased in the open market,
at an aysras> cost of about f72 per ton,
60, 1000 tons OF Chill, In addition to about
$4,000 tons OF other copper; the result be-
ing hat they now find themselves with a
on hand Of fully La, 900 tons, the
OF copper in the United States being
estimated at nearly 81. 200 tons by the
New York Engineering and Mining Journal,
against IL, 900 ons on the LIST January,
1889.
The purchases of the Syndicate during
the year are estimated approximately at
232, 900 tons, at 8 cost of $79. 703 $3.50
while their sales we're 81 900 tons for $751;
81, 1858 The report estimates
rha total increase in The world's nro1ue.
ton during 1888 to be 5000 tons, and
that during the year the United States pro-
dueed los. 5000 n It does not regard |
his increase as excessive considering the |
high prices of copper, but states the con-
sumption in England and France has fallen |
OF STATS tons during the rear. It con-
siders hat one of the disadvantages the |
Syndicate labor under is that they have to |
larry the stock OF copper usually held BY |